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Upskilling
European industry:
New operational
tools wanted
Recommendations of
the Strategic Policy Forum
on Digital Entrepreneurship
July 2016
A forum established by
DG Internal Market, Industry,
Entrepreneurship and SMEs
Foreword
Europe's digital skills shortage is both an opportunity and a challenge. With a digitally
skilled workforce Europe has a real opportunity to reap the rewards of digital
transformation. Without, we risk uncertain economic prospects and the social
problems of high levels of structural unemployment.
Accelerating
the digital
To reach that better path we need large-scale, well-financed and easy-to-access
programmes that are developed and delivered in partnership with knowledgeable transformation
stakeholders; programmes that encourage entrepreneurial approaches and have
different flavours for different sectors and industries.
This report is an integral part of our Forum's recipe for Europe's digital success.
Implementing these recommendations will help ensure Europe is able to prosper from
the positive effects of the digital transformation that is upon us.
Published
• Big data and B2B digital platforms:
the next frontier for Europe’s
industry and enterprises
John Higgins Published
President of the Strategic Policy Forum • Cities and regions as launch pads
Director General DIGITALEUROPE for digital transformation
Published
• Upskilling European industry:
new operational tools wanted
Upskilling European industry:
Published
new operational tools wanted • A digital compass
Four key recommendations for decision makers:
toolkit on disruptive technologies,
❶ Create an industry and social partners-led toolbox with specific action impact and areas for action
recommendations
❷ Foster company, sectoral, regional and multi-stakeholder digital academy
initiatives Table of contents
❸ Promote and support entrepreneur-ship as an opportunity for acquiring digital 1. Executive summary: upskilling
skills and career conversion European industry 3
❹ Define a pan-European financial scheme between the European Social and 2. Urgent action needed to close
Regional Funds, the Commission, Member States and Industry Europe’s skills gaps 6
3. Industry and social partners-led
toolbox for upskilling the European
An industry and social partners-led toolbox for upskilling the workforce workforce 14
4. Financing and creating incentives for
Digital 2. Tailored the upskilling of the workforce 18
Workforce company References 22
1. Industry
Planning solutions About the Strategic Policy Forum 23
diagnosis Digital
shift Upskilling Find out more about how digital
plan technologies are transforming
businesses and industries and how to
Techology Industry support the digital transformation:
trends trends https://ec.europa.eu/growth/
tools-databases/dem/monitor
3. Pilot
Training Financing test 4. Impact
suppliers schemes monitoring © - 2016 – European Union. All rights reserved.
Certain parts are licensed under conditions to the EU.
This publication is funded under the COSME
programme of the European Union.
Cover image © LUCARELLI TEMISTOCLE/Shutterstock.com
Executive summary
1
Upskilling
European industry
© LUCARELLI TEMISTOCLE/Shutterstock.com
Europe is facing a widening skills gap new digital technologies (i.e. robotics)
that is having an impact on the ability of and thirdly, new jobs requiring specific A
EU businesses and governments to and new skillsets will be created.
benefit from the opportunities of
advanced technologies and digitalisation.
A second underlying challenge is the
considerable gender gap that exists in
Seizing
At the same time, the advent of new
technologies and digital tools is making
digital skills. With 28.57% (North EU) to
35.60% (South EU) of women in the
opportunities
many manual jobs obsolete, while
digital industry2, Europe is already With the advent of new technologies and
creating demand for new types of skills.
missing out on a substantial the constant emergence of innovative
This has created an urgent need to
share of the workforce that could be and competing business models, the
upskill and re-employ the workforce that
mobilised to address the digital skills workplace is set to continually evolve.
is becoming redundant.
gap. The societal and environmental
Making upskilling a priority and impact of digital jobs should be more Reaping the full benefits
taking action at European level clearly communicated to incentivize of the technological revolution
more people to follow these career paths. Production processes across manufactu-
Upskilling the workforce in different EU
industrial sectors is a major priority and The adoption of new technologies is ring industries are being reshaped with
challenge. Launching a comprehensive bringing significant changes to the the adoption of digital and advanced
pan-European training strategy based on competencies required for a larger share technologies. The automotive industry
the needs of industry is required to of the workforce. Some functions will for example is being transformed by
mitigate the economic and social risks disappear. Others will require the additive manufacturing, collaborative
that will come from failing to prepare the incorporation of additional competencies robots, composite materials, data
workforce for a new technological and and skills. New functions and job pro- analytics linked to the production
digital future. files will be created. This transformation process, and plastic electronics. This
brings both opportunities and challenges allows the industry to create more
An important factor to be taken into for Europe’s industry and society.
consideration is the fact that to a large
extent society is not yet fully aware of
the importance of this challenge. The Tech opportunities & threats The digital skills gap
general workforce needs to be made The internet of things and
aware that in order to stay employed,
they must be willing to upskill and
related services will bring
40% of workers
using office
possibly shift sectors. EUR 110bn software
every day do not possess
An effective and adequate response of additional revenue p.a.
sufficient skills to use them
through a new pan-European reskilling for European industry3
effectively7
initiative is thus paramount for raising
awareness, boosting EU competitiveness,
increasing all workers’ employability,
9% of jobs are at high
risk of being
substituted by
90% of companies
indicate that
reducing unemployment and setting the
technology4 they lack digital skills5
foundations for a strategic resource
planning at EU level.
Digital transformation is disrupting
Financing upskilling
Only 64%
46%
job markets and has created a skills gap of companies invest
of European firms expect their
in development of
It is expected that digital transformation digital transformation objectives
digital skills5
in particular will severely impact for 2016 to be reached8
between 10% and 30% of the workforce
of banks feel
within the EU¹, amounting to 30-90
million people. The impact of digital
transformation on the job market will be
36% that they are
financially 4%
of companies
ensure that
their training
ill-equipped to address the
threefold: existing jobs will fall into efforts are aligned with their
challenges associated with
obsolescence, others will face radical overall digital strategy5
digital technologies6
redesigning with the incorporation of
value for customers but it also requires ‘very difficult’). This rating is well above
that workers adapt their skillset to be
better equipped to adopt these new
the ratings given to other types of
employment groups including in
C
technologies. purchasing/logistics, marketing and
Building up new job profiles
finance¹¹.
Recommendations
Meeting the demand for new skills
Finding efficient ways to upskill the
workforce and provide employees with One key issue is that young graduates do An effective and adequate response
the right skills to reap the full benefits of not have the skills and competences through a new pan-European upskilling
technological advances is key to cope required by the industry. The current initiative is paramount for raising
with the global economic pressure and education system, types of teaching and awareness, boosting EU competitiveness,
create a truly dynamic European curricula fail to provide younger increasing all workers’ employability,
economy. By investing in their human generation with the ‘mixture’ of hard reducing unemployment and setting the
capital, companies can find new means (e.g. data and statistics) and soft skills foundations for a strategic resource
to become more efficient, more agile and (e.g. collaboration and creativity) that planning at EU level.
more responsive to market changes. would allow them to thrive in today’s New operational tools are wanted for
Ultimately, investments in the upskilling ever changing business world. Further, upskilling the workforce and to meet the
of the workforce present a major the increasing pace of technology needs of European industry currently
opportunity to spur future job creation development also requires the existing undergoing a large scale, technology-
and therefore spark sustainable workforce to continuously upgrade their driven transformation. A toolbox for
economic activity. technical competences, which adds to the upskilling, led by industry and social
complexity of the skills gap issue. partners, with specific action recommen-
Focusing on implementation dations is needed. Multi-stakeholder
B Firms, education providers and public
digital academy initiatives are one of the
practical solutions for the toolbox. A
institutions have long realised that major financing effort needs to be made
Overcoming urgent action must be taken to upskill
the European workforce. Yet, if some
at European level to deliver these
actions. Finally, encouraging more digital
challenges managed to set up a clear and well-
designed upskilling strategy, most
entrepreneurship in Europe is key for
closing the skills gap.
struggle with implementation. What
Europe has a skills mismatch problem.
Europe needs is therefore easy to use
By 2025 almost half of all jobs in Europe
tools and opportunities for exchanging
will need highly skilled workers9.
best practices. In particular, initiatives
Whereas employers are struggling to
that seek to connect the world of
1
recruit people with the skills that they
business with education providers
need, unemployment levels remain at
should be encouraged in order to design
Create an industry and social
high levels. According to a 2014 partners-led toolbox with specific
adaptive training solutions in line with
Eurofound survey, 39% of employers are
facing difficulties recruiting staff10.
market demands. action recommendations
Highly technical staff are even more Financing and incentives
There is a need for an industry and social
difficult to find than other professional The European Commission foresees a partners-led toolbox for digital upskilling
staff. This is particularly true for staff 27bn investment to support upskilling with a strong sectoral focus, promoting
with advanced digital skills. UK firms for initiatives12, but how this will be e-skills, economic competitiveness,
example have rated big data recruitment accessed is not clear. Efforts need to be better jobs and social cohesion.
a difficulty rating of 3.2 on a four-points made to use available EU funds
scale (with 1 equating ‘very easy’ to 4 This toolbox will provide adequate
effectively and cut red tape.
responses to the technological leap that
industries will experience in the coming
5 to 10 years. It should be based on
Box 1: A New Skills Agenda for Europe devising new ways of creating and
delivering training for which the EU
In June 2016 the European
needs new flexible models and on the
Commission launched the New
sharing of best practices in order to
Skills Agenda for Europe to boost
provide a clear overview of entry points
human capital, employability and
across Europe.
competitiveness. The actions of the
New Skills Agenda focus on The toolbox and its tailored solutions
improving the quality and will be designed to be replicated in
relevance of skills formation, making skills and qualifications more visible and different regions and countries and for
comparable, as well as improving skills intelligence and information for better different sectors and skills profiles. It
career choices. adopts a four-step approach consisting
in: an industry diagnosis to identify the
The Digital Skills and Jobs Coalition is the new flag ship initiative among a
latest technology trends, training
number of other initiatives that were presented. A Blueprint for Sectoral
suppliers and financing schemes;
Cooperation on Skills will also improve skills intelligence and address skills
tailored company solutions; a pilot test
shortages in specific economic sectors.
of the solution; and impact monitoring.
2
Advanced and digital technologies are transforming industries
Foster company, sectoral,
regional and multi-stakeholder
1 Functional obsolescence,
digital academy initiatives Industry and social partners-led Functional redesign
toolbox for upskilling New jobs
Digital skills training programmes need the workforce
an active involvement from industry and
Economic
social partners in all sectors in defining Matching
2 and social
the curriculum and the sector-specific Multi-stakeholder monitoring skills with
skills required today and tomorrow. The digital academy demand
intrinsic problem is that companies act initiatives
much faster than the public sector, with a Operational tool
constant lag between supply and 3 for upskilling
demand. the workforce Relevant
Pan-European
training &
Curricula have to quickly adapt to financial scheme Financing comparable
demand requirements, but also need to and incentives qualifications
be constantly updated in order to stay
4
relevant. In this sense, it is necessary to Promoting and supporting
facilitate multi-stakeholder partnerships digital entrepreneurship
and to strengthen concrete and efficient as a means to acquire new skills Boosting employability of the workforce
cooperation at regional and national Increasing the competitiveness of industry
levels between social partners, academic
gateway regrouping, refocusing and
institutions, industry players and
building on all available schemes and if
Ministries of Education in order to work
towards a common objective. In this
needed, new complementary ones.
4
evolving context, independent and Traditional calls for proposals funding
official accreditations of competences projects (as in most EU programmes Promote and support
are important to ensure the quality of such as Erasmus+, European Social Fund, entrepreneurship as an
programmes and learning outcomes. Horizon 2020) are not suitable for large- opportunity for acquiring digital
scale digital upskilling. Public funding
In particular, public-private partner-
should be aimed at robust models and skills and career conversion
ships and other forms of public-private
scalable initiatives with proven success,
collaborations should be strongly Industrial transformations are creating
such as for example the Academy Cube,
encouraged given their complementarity. new labour opportunities, but an
initially developed in Germany. Its career
The public sector has a strategic vision increasing number of jobs are at risk,
and online learning platform offers an
and profound knowledge on territorial with redundancies rising. At the same
intelligent matching system, allowing
problems, social issues and can leverage time, Europe is lacking entrepreneurs.
STEM talent to identify and develop the
on large financial and human capacities. When compared to the US, Europe has a
skills and qualifications they require for
On its end, the private sector and gap of 20m early stage entrepreneurs14.
specific roles in the workplace. The
entrepreneurs can ensure a more Entrepreneurship should be seen as an
platform offers various training courses.
effective and targeted use of these opportunity and solution for career
It currently has 17,000 users but aims to
capabilities. conversion and reorientation. Digital
have more than 100,000 by the end of
201713. start-ups and SMEs are a driver of
innovation across industry sectors.
At Member States level, training schemes
3 and funding mechanisms should be
Significant opportunities exist for
European citizens to focus on acquiring
reviewed and refocused to ensure that specific digital skills, for example in
Define a pan-European they provide governments and especially coding or data analytics, by starting a
financial scheme between the Ministries of Labour, Employment and new entrepreneurial venture or joining a
European Social and Regional Education with the right instruments to start-up.
Funds, the Commission, deploy digital reskilling at scale and at
speed and with the support of industry. Encouraging digital entrepreneurship is
Member States and Industry also part of the solution for Europe’s
At industry and sectoral level, incentives digital skills gap. The ‘e-Skills for Jobs’
From a financial perspective, budgets for should be made available in order to campaign has been raising awareness
upskilling initiatives and programmes in encourage corporates at all stages of and encouraging European citizens to
education and vocational training are growth and expansion to provide specific develop their digital skills and access
overwhelmingly allocated at Member upskilling and training programmes to today’s job market. The ‘Watify’ is
States level and through the European their employees. A special emphasis fostering digital entrepreneurship in
Social and Regional Funds. should be placed on small businesses Europe, by targeting entrepreneurs and
and SMEs which cannot afford long and intrapreneurs to overcome the barriers
At EU level, the objective would be to costly training efforts but nonetheless that prevent them from starting their
define a major pan-European funding are the backbone of the economy. own business.
scheme or at least a one-stop-shop
New types of maintenance fitting jobs Besides, for a quarter of jobs, a large
are also likely to appear in the coming share of tasks are likely to become
decades. Technology advances will result automated, forcing workers to learn
in more complex machines being new skills and adapt in order to remain
deployed, which will need to be regularly effective4.
maintained and monitored by highly
qualified technical staff. Many companies
Robots carrying pallets
will outsource the calibration and system
setting of the complex machines they around warehouses
use. Maintenance fitters will therefore A warehouse equipped with
need to possess greater skills in
robots handles up to 4x
customer services, relationship manage-
ment and a broader understanding of as many orders
manufacturing equipment21. as an unautomated
warehouse22
Routine jobs under threat
© gualtiero boffi/Shutterstock.com
adult population possesses the skills that warehouse/business intelligence staff and look at how strong the impact of
are needed by employers. For example, declined by 6%¹¹. digital technologies is on the nature of
the IT and telecoms sector often favour supply and demand26.
older candidates over younger new New technology cycles are thus getting
graduates when recruiting new staff. shorter, and employees must continu- Transforming the nature
This suggests that the mixture of skills ously learn and refresh their skills to of demand and supply
required in this sector is the one that can prepare themselves for jobs that do not
yet exist or technologies that have not Digital technologies can first help
be acquired on the job rather than removing distortions in demand. With
through education25. been developed yet7. Increasingly, new
educational approaches and curricula mechanisms such as improved search
are required that allow acquiring new and filter tools, smart recommendations
engines and the custom bundling of
Experienced knowledge and skills at a later stage in
products, customers can have it their
the career.
staff wanted own way. They do not need to buy the
whole package anymore when they just
Over the past 10 years, want one piece of it (e.g. buy an
in the IT & telecom industries individual song instead of a whole
• the proportion of C album). They can also choose to buy
what they want at places of their own
16-29 year olds declined choice and on their own schedules.
from 32% to 19% Industry level: The Digital technologies also permit the use
• the proportion of multidimensional of new sources of supply which was
difficult to reach previously. Airbnb for
40+ year olds increased
from 32% to 47%25
impact of new example has increased the supply of
lodging.
technologies Finally, digital technologies allow
unused supply to be connected with
Continuous learning is central The impact of new technologies on latent demand. Wikipedia for example
existing industries can be manifold. It is managed to unbundle the product so
With each new technology, new skills therefore critical for industry players to that the consumer is not obliged
requirements are introduced. Yet, at the understand the nature of the changes anymore to buy the whole encyclopaedia
same time, the pace of technological brought by new technologies if they wish to search information on one specific
change seems to be increasing, and new to pursue their business activities in the topic.
tasks and job profiles keep on popping long run.
up while others start to loose their Radical changes leading to
importance (Figure 6). In the UK for McKinsey & Company has recently
paradigm shifts in value creation
example, the total number of developed a framework that identifies
advertisements for big data jobs rose by the deeper forces behind digital Digital technologies can also help to
41% between 2012 and 2013 (21,000 disruption (Figure 7). They explore create new value propositions that
positions in total) while demand for data supply and demand across a continuum give customers something they did not
Figure 7: Digital technologies disrupt industries by impacting the nature of drastically on existing business models
supply, demand, or both in the financial sector in Europe. They
could affect not only banks but also
other organisations such as investments
firms and insurers28.
The rise of FinTech companies
Investment in financial-technology
(FinTech) companies keeps on growing.
In 2014, global investment in FinTech
tripled to €10.09 billion. Of this global
investment, the US makes up the lion’s
share. Yet, Europe exhibits the highest
level of growth, with an increase of
215% between 2013 and 20146.
The presence of new market participants
clearly poses a threat to incumbents in
the industry. Introducing innovative
business models have helped many
FinTech to compete successfully with
traditional players. For example,
automated investment funds that use
algorithms (such as robo advisory) are
gaining ground at the expense of
traditionally managed investment
portfolios. Peer-to-peer lenders, which
connect lenders and borrowers online
(e.g. crowdfunding), show promise in
their potential to capture the entire
lending value chain from traditional
banks.
Source: McKinsey&Company, 201626
Because technology enables FinTech
firms to reduce costs (e.g. personnel
know they wanted. To have access to the expenses), they can offer their services
Internet via its smartphone, or to give Digital platforms to a larger group of customers. This has
real-time insights on the progress of Expected to capture for consequence that existing financial
deliveries as proposed by FedEx are
examples of such new value between 30% to 40% of institutions have more difficulties to
continue providing financial services
propositions. the automotive value chain27 profitably28.
Existing business systems can also be Established players seek to
reimagined thanks to digital techno- The digital revolution
harness new technologies
logies. The data storage industry for in the financial sector
example has witnessed drastic changes Incumbents in the financial industry are
The rise of new technologies in the
over the last decades which have also deploying efforts to keep up to
financial sector has put the entire
completely modified how the value chain speed with the surge of new
industry on shaky ground, with its value
works and how money is made. With technologies. Banks for instance have
structure in upheaval. Better
Dropbox (among others), data storage also made considerable progress in
connectivity, faster and better equipped
has switched from being a product (i.e. improving payment services. A well-
computers, smartphones and tablets
hard drives) to a service. known example is the mobile wallet,
pushes people to increasingly buy
which permits users to store their debits
The boundaries and definitions of financial products and services online
or credit card details on their
industries can be burred further with the rather than in the traditional brand
smartphone and use them to proceed
entry of platforms owners who span office.
with mobile payments28.
product categories and customers
Together with changes in consumer
segments. These new players have often
behaviour and in legislation and
other goals than the ones of traditional
regulation, new technologies has given
industry players. They create new
rise to two trends in the financial sector.
barriers to entry by harnessing first-
First, a series of new initiatives have
movers and network effects, and
started to emerge within existing
redefining standards. In the agricultural
financial market segments (e.g. credit
sector for instance, John Deere has
and capital provision). Second, new
created a unique platform with
initiatives that go beyond existing sector
agricultural data that obliges the rest of
boundaries also start to appear (Figure
the industry to use it and develop
8). Both trends are likely to impact
around it26.
© goodluz/Shutterstock.com
Figure 8: Technological innovation in the financial sector: sectoral and sector-transcending initiatives
Sectoral innovations
Portal aggregators
Cloud computing
Existing initiatives Developer; on the job trainings in workforce intends to remedy this
remain fragmented pilot plants for operators; and situation by providing organisations with
e-learnings on leadership, communi- key guidelines to do so.
When looking at the variety of initiatives cation, health & safety and specific
that seek to respond to the skills gap New tailored training solutions need to
engineering and mechanical tools.
(see also the following chapters), it be defined in close collaboration
becomes apparent that the need for Finally, some initiatives are specifically between the company or organisation
upskilling originates from different targeted at the ‘front-end’ of the skills and its employees or members. At a time
sources. For some organisations, an development pipeline, focusing on of unprecedented demand for digital
upskilling initiative is executed because developing digital literacy and advanced and advanced skills, the definition of new
the skills of young graduates do not digital skills amongst young children. skills development frameworks is
match the requirements of the industry. The principle behind this is that when required to ensure a better match
In this case, the range of skills taught is young children start with a solid basis in between the skills level of the workforce
often broad, ranging from vendor digital skills early, it is much easier and and new skills requirements. The
certified programming skills to more more likely that they will further develop redefinition of the skills development
generic skills and knowledge (e.g. these skills in their career. framework is also a prime opportunity
software engineering, hardware to increase the employability of the
Although these initiatives form a great
platforms and intellectual property workforce, to increase their ability to
starting point for upskilling the
regulation). deal with new digital and industrial
European workforce, there is a need for
technologies and to better communicate
Other organisations have put in place expanding the scale and number of
internally and with external partners. It
upskilling initiatives in order to upskilling initiatives. Because current
will also address concerns linked to
implement new technologies within initiatives remain fragmented, they
technical innovations by enabling the
their company successfully. Examples impact on the education and training
workforce to better grasp the full
include: systems is often limited.
ramifications of the related change.
• Implementation of a Life Cycle Engineering an operational solution Fostering a collaborative approach
Analysis approach within a company to pool isolated upskilling efforts for the upskilling of the
specialised in protective coatings and
The integration of new technologies in European workforce
resin flooring, which demanded new
European industries and enterprises is
skills for operating a new software The toolbox consists in a 4 step approach
significantly altering the qualifications
programme; to assist companies from the assessment
and skills requirements of a major part
of the new skills requirements to the
• Application of emerging technologies of the workforce. Depending on the
implementation and impact monitoring
to support teaching and learning in sectors, large numbers of jobs are
of the designed training solutions.
universities, which required the disappearing, job functions are changing
setting up of technology exhibitions considerably and new jobs are being The toolbox is useful for all the
and displays, and to increase teacher created. However, in Europe, a vast professionals involved in the definition,
knowledge on new technologies; majority of large and small companies implementation or evaluation of skills
have still not implemented comprehen- development framework. Company
• Company-wide training programmes sive assessments of the implications of managers, trainers, education providers,
aimed at supply chain automation these new changes on their workforce. HR professionals, employees and policy-
within automotive suppliers, which
makers all have a key role to play in the
included among others certified The industry and social partners-led
upskilling of the European workforce.
vocational trainings for becoming a toolbox for upskilling the European
Mathematical Technical Software
© Rawpixel.com/Shutterstock.com
The analysis will include policy monitor- The creation of incentives for different
ing, an overall vision of the market, level B stakeholders will also lead to a faster
of adoption of technologies and up- contribution and adoption of the toolbox.
skilling efforts by key players and the Step 2
identification of effective upskilling Development and implementation
programmes that can be scaled up. The Tailored solutions of a tailored upskilling plan
analysis should be carried out at global
A tailored upskilling plan should be
and local levels. The second step aims to provide
developed and take into account the
companies with tailored solutions based
All industry players and social partners following elements:
on the industry diagnosis performed
need to be involved in the assessment of under the first step. The toolbox should • Number of people to be upskilled;
the industry-specific technological provide the necessary means for
trends. In order to do so, working groups companies to adequately adapt to, and • Scope of the upskilling programme;
or interviews need to be carried out to even anticipate, the potential impacts • Timing of the programme;
get a better understanding of these that digital transformation will have on
trends and their implications on their workforce. The required company- • Source of funding of the programme;
different sectors. specific solutions will cover the following • Implementation strategy; and
Identification of funding three dimensions.
• Potential partners.
and financing schemes Assessment of the technology
and digital shifts that particular In order to provide an answer to these
Businesses have the ability to grasp or to
questions, the toolbox should deliver
sharpen a new competitive edge by companies will undergo
specific solutions by determining:
investing in the upskilling of their
The major technology and digital shifts
workers. However, finding sources of • Who the main industry-specific players
that particular companies will undergo
funding for corporate trainings can and stakeholders are;
as industries transform in the next
prove highly challenging for companies,
5 to 10 years need to be assessed. • What kind of assistance in terms of
especially for SMEs. Yet, substantial
Different technological innovations open collaboration, partnerships and
financing schemes for workforce
should be evaluated, selected and shared practices can they provide. A
development are often available but
adopted in alignment within the strategy, special emphasis should be put on
potential beneficiaries are rarely or not
business objectives and processes of public-private partnerships or other
sufficiently informed of the available
every organisation. The analysis should public-private collaboration schemes;
financing opportunities. Funding and
be extended to the impact on the entire
financing schemes available to support • How often the training should be
workforce within the company as well as
upskilling initiatives therefore need to be implemented;
all professions subject to radical changes
identified at EU, national and local levels.
due to digital transformation. • How to finance the programme in the
Public authorities need to work in most cost-effective and inclusive
Development of a
collaboration with companies and manner; and
training providers to raise awareness on Digital Workforce Planning
available financing schemes and to • Which curricula or learning platforms
A Digital Workforce Planning is
develop new partnerships to finance are most suitable to offer trainings for
necessary to allow companies to project
upskilling trainings when necessary. the provision of the most pressing
themselves in the next 5 to 10 years by
These new training opportunities could skills in a specific industry (e-learning
estimating their digital skills and
therefore be financed by both public and courses, traineeships, apprenticeships,
competencies gap as well as to define the
private actors or though public-private communal programmes, etc.).
required characteristics of the future
partnerships. workforce. The completion of this second step
ultimately leads to the creation of an
Provision of an inventory of the To make the industry and social
innovative portfolio of curricula. If
existing training suppliers and partners-led toolbox a success, it is
properly developed, these curricula will
their infrastructure essential to involve all stakeholders and
be recognized by the industry,
to create political momentum for the
While demand for trainings can vary employees, and governments as an
institutionalisation of the toolbox. EU
from one company to another, underuse attractive operational solution providing
ministers, trade unions and industry
of the available trainings at regional level individuals with skills that will ensure
players should all be mobilised in order
can often prove costly both to local their employability and effectiveness,
to take this initiative forward and put
governments and companies. An which in turn will contribute to enhance
digital upskilling on the agenda.
inventory of the existing training the competitiveness of the EU industry.
suppliers and their infrastructure is In particular, as it may not be feasible to These new curricula will be certified and
therefore required at country, sector, access additional funding, it will be accredited by national and European
institutional and private level in order to indispensable to define training authorities to ensure their quality and
address and provide solutions to specific priorities and to refocus funding alloca- recognition. Similarly to the North
reskilling challenges. Particular attention tions to be able to address the full scale American upskilling initiative ‘Udacity’,
should be given to new ways of of the issue. By turning the dialogue and the new curricula will be structured
delivering training and on the infra- involvement between stakeholders into either around company functions (e.g. IT
structure used to do so. Hence, the concrete actionable recommendations, developers, security and data officers,
diagnostic phase will also intend to there will be an enhanced ownership technology integrator and maintenance),
identify and define the equipment dimension which will translate into technology (e.g. data analytics, artificial
requirements for the different trainings greater and sustained commitment. intelligence) or personal skills (e.g.
that need to be provided. communication, project management).
Strategic Policy Forum on Digital Entrepreneurship
15
Industry and social partners-led toolbox for upskilling the European workforce
Infrastructure requirements and on the target population and to assess Pilot tests for structural programmes
training providers for upskilling the whether the designed training is ready anticipating future skills needs
workforce for full-scale implementation.
The second category of upskilling
The curricula that will be introduced to Acting as a trial run, the pilot test is a initiatives covers organisations that have
upskill the workforce might require critical step that needs to be carefully set up a structural programme for
investments in new physical infra- organised. It enables training designers upskilling within their own organisation
structure and up-to-date technological to identify potential problems and not specifically targeting one project or
equipment. For instance, training unforeseen challenges and to take change. These pilot tests need to be
employees for fibre optics requires actions to address them or to prevent defined by the company in direct
significant infrastructure and equipment them from escalating when the full consultation with its employees.
investments if the trainings are to be implementation of the training occurs.
provided in a learning-by-doing manner
Pilot tests for upskilling programmes
Different categories of upskilling for specific transformation projects
by imitating a real life productions initiatives can be developed. These
environment. different categories of trainings all have The third category of upskilling
Policy makers, in collaboration with different types of pilot tests with varying initiatives covers companies that have
industry, need to ensure that the degrees of difficulties. The following rolled out more specific upskilling
infrastructure needed to effectively provides an overall account of potential initiatives in response to specific change
upskill the workforce is provided. actions which can be taken to tailor the projects or technology implementation.
pilot phase to different categories of The assessment and planning phase of
Training providers should be selected upskilling initiative. the pilot test is particularly important as
while taking into account their capacity it needs to be tailored to the specific
to meet specific employee training Pilot tests for multi-user platforms goals of the change project.
objectives in the most efficient manner. to organise trainings
The first category of upskilling initiatives Box 5: Key recommendations
covers digital platforms set up by for an optimal pilot test
© goodluz/Shutterstock.com
D
Step 4
Impact monitoring
Once the methods to bridge the skills gap
have been identified and implemented, it
is crucial to establish a continuous
system of monitoring progress both at
industry and company level. In order to
deliver value added solutions, the
toolbox should be regularly updated
with technology and industry trends,
financing schemes, partnership opportu-
nities and training suppliers.
Impact monitoring activities will take a
holistic view of the company and
industry value generated by the toolbox
solutions. Relevant indicators include:
• The geographical distribution of
© wavebreakmedia/Shutterstock.com
companies using the toolbox;
The creation of an upskilling programme ask training users about their
• The number of upskilling programmes
is ultimately a repeating process recommendations and suggestions for
implemented;
consisting of four steps: improvements based on their experience
• The evolution of the retention rate in with the training. All learners, and their
• Assessment;
companies using the toolbox to provide representatives in trade unions, should
trainings to their employees; • Planning; be included in the evaluation exercise
since they all have different learning
• The number of companies accessing • Implementation; and styles and strategies. An effective
particular financing schemes; assessment and evaluation of the
• Monitoring.
• Survey campaigns and periodic upskilling therefore starts with the
Training designers need to keep in mind involvement of the right stakeholders.
meetings to evaluate the progress and
that the monitoring and evaluation of the
benefits of reskilling programmes at
upskilling initiative will not ensure it has Creating specific monitoring
industry and company level; and
an impact on learners if the training has arrangements for each specific
• The level of digital literacy of training not been properly assessed and planned reskilling initiative
users. in the first place.
The monitoring of upskilling initiatives is
Striking a balance between Sharing training evaluation results essential for trainers to assess where
upskilling goals and training impact with all interested parties they stand with implementation. Each
specific training project or upskilling
The monitoring of the toolbox will serve Training evaluations are critical not just initiative needs to have its specific
to identify the key challenges and for the trainers, training designers, monitoring arrangements. Monitoring
unforeseen problems which had not companies or policy-makers. Feedback is mechanisms do not necessarily have to
been detected during the pilot test of the essential also for learners to get a better be particularly elaborate or scientific.
reskilling initiative. They include for understanding of their progression. An
example problems with the setting of the impact monitoring of upskilling initia- The constant use of the monitoring
course, logistics, and specific training tives is therefore necessary for the system is however critical. In addition,
modules or activities for which more learners themselves and they should the gathered information should remain
elaboration, explanation or practice may therefore be fully associated during the as straightforward and simple as
be necessary. implementation of the monitoring possible to facilitate the interpretation of
exercise. the training results and the revision of
The monitoring of the training course the upskilling initiative.
will allow the training designers to Leveraging on learners’
ensure that training modules are feedback to improve and Ensuring an effective allocation
planned and delivered in a suitable add value to the training of training budgets
manner in terms of both content and
fulfillment of audience’s requirements. It The evaluation of the upskilling initiative The monitoring phase also acts as an
is therefore critical to collect relevant should provide adequate responses to opportunity to ensure a better match
data during the impact monitoring phase the digital leap that industries will between the training-related expendi-
to ensure the effective evaluation of experience in the coming 5 to 10 years ture and the training goals being
training results. and offer concrete and ready-to-use pursued. Training budgets should
suggestions and solutions to SMEs. A therefore be monitored on a regular
practical way to find these solutions is to basis and revised according to the
training needs of employees.
Upskilling the workforce in different EU financed the trainings even without any
industrial sectors is a major priority and
challenge. There is a tremendous need
A public-sector intervention. An additional
challenge is the information lag
for upskilling as around 100 million regarding the targeting and scoping of
Europeans will have to update their
skills in the coming 5 years1 if they wish Tapping into upskilling efforts. These challenges are
one of the reasons why stakeholders
to keep up with the pace of new
technology development. Moreover, the different available believe that public-sector intervention
should be reserved for basic and general
resistance to adopt new technologies and
to change tasks or functions is alarm- instruments skills development.
Financing arrangements led by the
ingly high amongst the workforce in
private sector have the benefit of being
Europe. In order to keep pace with financial
developed by the best-equipped actors to
considerations related to the upskilling
In this respect, defining a bold incentive assess upskilling needs. They include:
of the European workforce, it is impor-
framework to align the vision and
tant to consider the types of upskilling • sectoral training funds;
actions of companies, employees and
cost involved.
training bodies is of utmost important if • mutual training funds within a region
Europe’s industry wants to maintain its Differentiating upskilling costs or an ecosystem;
leading position. Incentives need to be
targeted at three main groups of stake- First, the cost of trainers needs to be • company-wide training funds (in the
holders (Figure 11). taken in account. This includes the case of very large companies);
compensation of individuals, companies
• communal training programmes for
Figure 11: A bold incentive frame- and organisations effectively providing
micro-enterprises; and
work targeted at 3 key stakeholders trainings in classrooms, workshops or on
digital platforms. Second, the cost of the • employer-sponsored apprenticeships.
❶ Providers of new training curricula development, maintenance and revision
• Professional training associations and of training concepts, curricula and At the individual level, European
companies – define the best programmes materials should not be under-estimated. workers and job seekers can sometimes
with clear goals and financial means Third, the cost of both physical and benefit from public sector guarantees to
• Developers of new educational digital training spaces can also be high. reduce the borrowing cost. For instance,
technologies – essential to increase the Last but not least, foregone productivity Nordic countries have experimented and
reach and impact of the programmes
needs to be taken into account, as in some cases implemented schemes that
• Trainers – to be trained to deliver new employees spending hours in training encouraging household savings for
curricula, creating thousands of jobs and and upskilling programs are not upskilling purposes.
requiring a strategic resource planning
productive during those hours. These schemes include individual
❷ Beneficiary entities
learning accounts that are specifically
• Companies – with different incentives for Highlighting the role of public,
targeted at saving up for upskilling, and
large corporates and SMEs, which will private and individual initiatives life-course arrangements that encourage
need more direct financial support to upskill the workforce savings for costs associated with life-
• Administrations, healthcare and other changing events such as having to
public funded bodies - tailored Public authorities can use several
instruments to finance the upskilling of provide high-intensity informal care,
incentives to enable the participation of
officials and public sector employees the European workforce. They include switching career tracks, or investing in
fiscal instruments such as tax incentives upskilling efforts.
• Nonprofit organisations – as a driver of
social cohesion and source of employment or reduced social contributions for Typically, these schemes feature fiscal
❸ Individuals and employees employers investing in training and facilities to make them more attractive
reskilling, training vouchers, direct than regular saving possibilities. At the
– Success relies on personal motivation to
grants and subsidies for specific training same time, the financing of upskilling
acquire new skills and apply them in a
new competence framework courses and upskilling curricula. efforts at the individual level is also
– Incentives include new remuneration Typically, these instruments face associated with challenges such as
schemes, new skill recognition pattern challenges related to the ‘deadweight deferred earnings, credit risks and
through certified training programmes, loss effect’ which can be associated with return-on-investment risks, liquidity
new career paths and increased constraints, and (short-term) economic
the financing of upskilling efforts. This
employability impact on consumer spending.
occurs when the employer would have
tives focusing on digital jobs and skills. In increase the labour-market value of
B this respect, a greater emphasis on youth in NEET, it could be worth
human-capital development for the strengthening the focus of the YEI on
digital domain could be considered. ESF digital skills and digital jobs, in order to
funding is made available to Member emphasise the upskilling of young
Improving existing States and regions via Operational workers for jobs in the ICT fields.
Programmes.
European funding Erasmus+
initiatives to be targeted by the Fund. ensure that people aged 25 and younger
According to a recent study, policy receive decent employment opportuni-
development and implementation ties, continued education, apprentice-
focusing on digital skills and digital jobs ships or traineeships within four months
differ across Europe (see Figure 12). after the end of a job contract or after
school completion.
Even though the 2007 e-Skills agenda
gave momentum to greater policy These measures may include the
responses at Member-State level, policy creation of strong partnerships with key
making in the digital domain is still lacks stakeholders, the strengthening of
consistency and integration. Conse- employment services to ensure early
quently, the investment potential of the intervention and labour-integration © docstockmedia/Shutterstock.com
ESF still opens doors to a large number measures. Another key consideration of
of opportunities for actions and initia- the YEI is the facilitation of the Education
to Employment path. To structurally
achieve this goal. Coordination on the the skills actually provided by the
D definition of the type of funding
instruments needed and the identity of
trainings. The relevance of upskilling
initiatives will ensure their scalability,
the funding authorities is also critical. transferability and it will also act as a
Create a European For instance, training vouchers have the
ability to help SMEs overcome the
guarantee of their sustainability over
time.
one-stop-shop financial barriers preventing them from
financing the staff trainings required for The most effective way to ensure the
relevance of upskilling initiatives is
for all available the adoption of new digital solutions and
technologies. therefore to involve all interested parties
in the their design. Industry players
funding schemes Identifying the relevant need to clearly define their skills
coordinators for the requirements and the skills gap of
An increasing number of upskilling employees needs to be clearly assessed.
European one-stop-shop
initiatives are being developed to bridge The regular impact monitoring of the
the European skills gap. These initiatives Mobilising the right individuals and upskilling initiatives will also be key to
are led by different actors. However, organisations to set up and coordinate a ensure that the initiatives remain
with the multiplicity of upskilling European one-stop-shop on upskilling relevant over time.
initiatives, workers and companies are initiatives is critical for its success and
often lost and have difficulties continuity. Public authorities at EU, Adapting the content of upskilling
identifying, taking up and replicating national and local levels need to work in initiatives to national specificities
relevant initiatives. collaboration with industry represent-
The adaptation of the content of the
tatives and training providers to create a
Further promoting existing upskilling initiatives to the specific
transparent and easily accessible
funding schemes needs of national companies is key to
European one-stop-shop.
increase the impact of the European one-
At European level, substantial funds have This one stop shop on upskilling stop shop. In order to do so, the
consistently been made available to approach will be particularly beneficial appointment of local ambassadors of the
improve educational outcomes. The for the implementation of the New Skills European one-stop-shop with a deep
extent to which these funds have been Agenda actions, namely the Digital Skills knowledge of the local training needs
used to finance upskilling initiatives and and Jobs Coalition and the Blueprint for could be an effective way to ensure the
activities (notably focusing on digital Sectorial Cooperation on Skills. relevance of the platform to local
skills) is limited (especially as regards specificities.
the ESF, the Youth Employment Initiative A clear identification of the learners’
and Erasmus+). needs is necessary and will guarantee Ensuring the recognition
that an appropriate response is provided of funded trainings
For each of these programmes, the in order to ensure the best fit between
emphasis on digital skills and jobs could the user’s needs and the service The recognition and certification of the
be strengthened. This reinforcement of delivered. trainings of the European one-stop-shop
the digital dimension could notably be is crucial to ensure the positive impact of
achieved though the definition of a major Ensuring the relevance of the funded upskilling initiatives. The
pan-European funding scheme to the funded upskilling initiatives certification and accreditation of
channel public funding for upskilling trainings increase their relevance for
initiatives. The targeted initiatives The relevance of upskilling initiatives learners since it serves as an effective
should be based on robust and scalable should be assessed in terms of the fit way to increase their labour-market
models. They should demonstrate between what the learners and the value and also facilitates job mobility.
tangible results and success stories. employers expect from the trainings and
ICT sector”, 2013, available at: statement-new-skills-agenda-europe- January 2016, available at:
http://bookshop.europa.eu/en/women- european-parliament-plenary-session- https://www.gov.uk/government/uploads/sy
active-in-the-ict-sector- strasburg_en stem/uploads/attachment_data/file/492889/
13 Academy Cube, “The world ‘s smartest
pbKK0113432/;pgid=Iq1Ekni0.1lSR0OOK4My DCMSDigitalSkillsReportJan2016.pdf
cO9B0000DgOKXNm1;sid=- talent platform”, 2016, available at: 26 McKinsey&Company, “The economic
Nnee0avzRveYREowK9A3CSK_wrYqORshIk=? www.academy-cube.com essentials of digital strategy”, March 2016,
14 PwC, “Accelerating the digital
CatalogCategoryID=CXoKABst5TsAAAEjepEY available at:
4e5L transformation of European industry and http://www.mckinsey.com/business-
3 European Commission, “Digitizing European enterprises”, March 2016, available at: functions/strategy-and-corporate-
industry”, available at: https://ec.europa.eu finance/our-insights/the-economic-
15 Strategy&, “Connected car study 2015:
https://ec.europa.eu/digital-single- essentials-of-digital-strategy
market/en/digitising-european-industry Racing ahead with autonomous cars and 27 Elżbieta Bieńkowska (speech), 2015