The Skills Shortage Is Real—Here’s How Smart Companies Are Responding
- Merve Kagitci Hokamp
- Mar 16
- 5 min read
Many of the leaders I coach are facing the same challenge: their workforce isn’t keeping up with the pace of change. The skills that were critical five years ago are becoming irrelevant, while new skills—especially in AI, data, and digital transformation—are in high demand.
Companies know this. Yet too many are still stuck in outdated hiring and development models, resulting in:
→ Struggles to attract and retain top talent.
→ Employees feeling stuck, disengaged, and ready to leave.
→ Teams lacking the skills needed to drive business performance.
Let’s break down what’s changing, what skills are in demand, and how organizations can actually fix this before they get left behind.
1. The Skills Crisis: What the Data Says
The latest World Economic Forum (WEF) Future of Jobs Report estimates that 44% of workers’ skills will be disrupted by 2030, and six in ten workers will need additional training before 2027 (WEF, 2024).
What’s in demand?
✓ AI and machine learning skills
✓ Data analysis and digital transformation leadership
✓ Critical thinking and problem-solving
✓ Sustainability and ESG expertise
What’s fading?
✗ Routine manual work (being automated)
✗ Basic data entry (AI tools can do it faster)
✗ Traditional degree-based hiring (competency matters more)
Companies that don’t start adapting their workforce today will struggle with retention, hiring, and overall competitiveness in just a few years.
2. The Reality Inside Companies: Leaders Are Struggling To Find People with the Right Skills
This isn’t just a theoretical problem—it’s showing up in real businesses right now. Here’s what I’m seeing firsthand in my coaching practice:
“We can’t find people with the right skills.”
A coachee of mine, a Director of Engineering at a SaaS company, had multiple open roles but kept rejecting candidates because they didn’t have exactly the right technical background.
When he dug deeper into the issue, it became clear that:
→ The hiring process was outdated—still screening for traditional degrees instead of practical skills.
→ Candidates had adjacent skills that could be upskilled quickly, but hiring managers weren’t flexible.
After careful consideration and a clear plan, he revamped the hiring approach:
→ Shifted focus to skills-based hiring rather than rigid job descriptions.
→ Introduced an internal upskilling program to onboard high-potential hires faster.
The results: A broader talent pipeline, a 30% reduction in hiring time, and a stronger, more adaptable workforce.
Lesson for HR & Leaders: Stop chasing “perfect candidates.” The market is shifting to hiring for potential, not perfection. If you’re not adjusting, you’re losing out.
“Our employees feel stuck and they’re leaving.”
Another coachee, a VP of HR at a financial services firm, was panicked about a talent exodus. Employees weren’t leaving for better pay—they were leaving because they felt stuck.
They did an internal survey, and the results were brutal:
→ 72% of employees said they didn’t see a clear career path at the company.
→ 64% said they weren’t learning anything new.
She took action, rallying her team to shift course.
Microlearning programs gave employees the flexibility to build new skills without stepping away from their work.
Job rotations opened up opportunities for growth, allowing employees to expand their expertise without having to look elsewhere.
Managers became actively responsible for developing their teams, not just delivering on business goals.
Six months in, engagement was up, retention stabilized, and employees felt genuinely supported in their growth.
Lesson for HR & Leaders: If your people don’t see a future in your company, they’ll find one elsewhere. Learning & development is a retention strategy.
3. The New Hiring Playbook: How Smart Companies Are Adapting
Companies that are winning the talent game aren’t just hiring differently—they’re thinking differently. Here’s what’s working:
Move from Degree-Based to Skills-Based Hiring
→ Old approach: “Must have a degree in X from a top school.”
→ New approach: “Must be able to demonstrate skills in X.”
Stat: 76% of employers say they prioritize skills over degrees when hiring (LinkedIn Talent Report, 2024).
How to apply it: Remove degree requirements from job postings where possible. Test for real-world capabilities, not just credentials.
Make Upskilling & Internal Mobility a Priority
→ Old approach: “Hire externally when a new skill is needed.”
→ New approach: “Train & promote from within before looking outside.”
Stat: Companies with strong internal mobility programs retain employees 41% longer than those without (LinkedIn Workforce Learning Report, 2024).
How to apply it: Invest in microlearning, mentorship, and job rotations. Your best future employees are probably already working for you.
Embrace AI—but Keep It Human
→ Old approach: “AI is a cool tool we should explore someday.”
→ New approach: “AI is already shaping hiring, productivity, and team dynamics—let’s integrate it now.”
Stat: 25% of all U.S. tech job listings now require AI skills (WSJ, 2024).
How to apply it: Start small—automate admin-heavy HR tasks but keep people-centric decisions human-led. AI should enhance your hiring & talent strategy, not replace it.
The Shift Is Already Happening—Is Your Company Keeping Up?
The talent landscape is changing fast. Companies that cling to outdated hiring and development models will face ongoing struggles with retention, recruitment, and performance.
The organizations staying ahead are:
→ Prioritizing skills over rigid job descriptions.
→ Investing in internal talent development.
→ Creating a culture where continuous learning drives both engagement and business success.
Stagnation isn’t an option—adaptability is the real competitive advantage.
Hi! I'm Merve. 👋 I help leaders build high performing teams, amplify their business impact, and advance their careers.
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