Building the necessary blocks for employability

WE live in a world in which new products, new markets and new models of organisations emerge on a quasi-continuous basis. In such a world, new functions need to be performed, and skill sets are constantly evolving. No individual should, hence, consider that their formal education will suffice to enable them to perform efficiently, or even to remain employable without continuous re-skilling and up-skilling. The 20th century model of 20 years of generalist education followed by 40 years of work does not fit well with the fast changing needs of the 21st century.

The need for lifelong learning

In all parts of the world, labour markets are affected by a combination of factors that transform deeply the kind of jobs offered, the ways in which they are offered, and the kind of skills that are needed to fill them. Two of these changes are technological change and global competition.

On the technology front, innovations are affecting the way in which talent can be grown, the skills that labour markets will require today and tomorrow, and the way in which people work. Interactive platforms allow students, even at an early age, to find knowledge and exercise their problem-solving skills without dependence on the teacher.

Technology is constantly creating new jobs - while many people across the world lose their old jobs. In Europe, while 28 countries face 11 per cent of unemployment, almost 500,000 IT positions remain unfilled.

It is obvious that the students trained today in the formal education system are not being equipped with some of the skills that will be in high demand tomorrow because such skills have not been defined yet. The advent of high-speed/broadband global information networks is also radically affecting the ways in which mobility is defined (eg through teleworking and virtual teams) and in which labour markets function. Although challenging for most organisations and individuals, this is good news for countries such as Singapore who are leaders in information technology (Singapore ranks No 1 in our latest Global Information Technology Report, released in April by the World Economic Forum, INSEAD and Cornell University).

On the global competition scene, all organisations, large and small, have become subject to intensified pressure for higher levels of efficiency and productivity. Labour markets grapple with the implications. Long-term contracts have become the exception rather than the norm, and individuals have to be prepared to have many employers - indeed different careers - in the course of their lifetimes. In many countries, governments struggle to reform rigid labour market regulations that are ill-suited to this new age. Employers encourage and support efforts to acquire new knowledge and talents through "corporate universities", while individuals themselves consider lifelong learning opportunities as a source of personal growth.

The renaissance of vocational education

There are 33 million people in Europe and the US looking for jobs, particularly young people, while eight million jobs go vacant. In Asian countries such as South Korea, people graduating from university often cannot find a job that suits them while many technical positions go unfilled because of lack of qualified applicants. Mismatch problems such as these are leading to what we call a renaissance in vocational education.

Switzerland is a good model to look to. Switzerland is No 1 in the world on the Global Talent Competitiveness Index, also the global leader on the Global Innovation Index. It has the lowest unemployment in Europe, particularly among youth (3.6 per cent compared with an average of 25 per cent across Europe).

In Switzerland, thinking about your vocation starts at age 12. At age 15, 70 per cent of the students choose to go on the dual theory-practice vocational track (known as the apprenticeship route) rather than the academic path. Like Singapore and Korea, Switzerland is among the top ten of OECD's reading, math and science scores. Half of the Swiss government ministers come from the vocational track. In cosmopolitan Geneva and Zurich, the foreigners want their children to study on the pure academic track, while the Swiss are happy when their kids join the vocational system - "if in doubt, choose the safe path". There is more diversity, more paths to excellence - leading to more innovation, as well as the fine technicians and professionals that an innovative economy requires.

One lesson to be drawn from the Swiss example is that it is essential that companies, schools, and local authorities work closely on the design of the curricula, ensuring that they are constantly updated and relevant to current needs and opportunities. Such close partnerships are a central feature of Singapore's recently launched SkillsFuture Earn-and-Learn programme.

Formal education remains the building block for employability, but needs change

Formal education gives individuals the knowledge foundation they need to partake in the workforce. As we moved into a knowledge-based world, tertiary education exploded - a seven-fold increase in China over 20 years, and 16-fold in India. Yet, in today's fast-moving, highly integrated and inter-connected world, additional pillars need to be built on this foundation to provide workers with the employable skills they need to find gratifying jobs. Such pillars include lifelong learning and training opportunities, inside and outside companies and organisations.

One of the features of the Swiss system is that there are many cross-over paths into university and higher technical institutes, rather than the single track, generalist school path that characterises many (if not most) countries. Vocationally trained technicians can apply later to higher technical institutes; professionals can return for Master-level degrees as mature students. Business schools across the world have expanded by tapping into the need for continuing education.

However, the building blocks of traditional education need to be modernised. Basic skills in reading, math and problem-solving remain vital. But since innovative work involves interpersonal and team skills, including working with people from different cultures, the students who are well equipped for the future are those with these additional competences. The data from corporate recruitment and from job seekers shows clearly that those who get the jobs are technically qualified applicants with these broader interpersonal and team skills. What used to be regarded as extra-curricula is becoming core.

Most countries of the world, and notably in Asia today, are under pressure to reduce rote learning in their school systems, where students learn how to regurgitate knowledge so as to pass key exams. It is a particular challenge in South Korea.

The test of an educational system today is that students leave literate, competent in maths and analytic thinking - but able to work with others in teams, and above all, with a curiosity to learn. Seeing a problem as an opportunity was the hallmark of the 20th century's entrepreneurs; it has to be built into the 21st century basic education to match an era of knowledge-based innovation.

Such reforms will require the constant attention and support from government authorities working in tandem with business corporations and educational institutes so as to articulate clear national strategies with an eye on the skills and jobs of the future. So far, few countries have designed and adopted national talent strategies. More and more, such policies will become a critical element of national policies. They will also have a snowballing effect, giving early starters a significant advantage since, as all recruiters know "talent attracts talent".