Hybrid work demands capabilities, not just skills

By Mark Creighton, CEO of Avado

The workplace is having to evolve and adapt to new challenges brought about by the effects of Covid-19. Organisations have had to delve into uncharted territory with a new style of working. However, many organisations will struggle to thrive due to the inherent lack of capabilities in their organisations. Conversations surrounding the skills needed to grow in this new way of working are extremely circular – it is time to move the conversation beyond skills, and to start talking about capabilities.

Our recently published research ‘Beyond Skills’ found that the financial services industry saw the weakest growth during the pandemic, compared to industries such as pharmaceuticals/healthcare and fast-moving consumer goods, both of which also saw a lack of growth.

A major factor in why these industries experienced such slow growth was the lack of investment in people within organisations. Interestingly, 80% of respondents in our research agreed that business survival had taken priority over investment in people, ultimately due to a vast majority of organisations regarding learning and development as the lowest priority. However, the lack of investment in this area is now exposing large cracks in organisations, which are having to adapt quickly to industry changes. The lack of investment across all industries in learning and development has now formed a capability chasm across the UK.

There has never been a more prominent time for organisations to close the capability chasm that now exists across the UK, and to use this opportunity to evolve their approach as we emerge from the pandemic. Our ‘Beyond Skills’ report suggests there is a negative correlation between the capabilities that organisations will need, compared to the capabilities they already have. At Avado, we define capability as deep-rooted knowledge required across an organisation.

The pandemic has led to new ways of working, such as the scaled hybrid working model, which relies heavily on employees working autonomously. This highlights the need for organisations to upskill employees to adapt in a remote work setting and sustain key collaboration behaviours beyond an in-person work environment. Aside from the various soft skills and capabilities needed for hybrid working, this model will also rely on people;s  ability to be both adaptable and agile, as much as sutaining their important business acumen and analytical thinking.

A common misconception is that organisations will be able to get by with the bare minimum of training, and that employees will adapt to a new form of working on their own. However, a key takeaway from our research is that 71% of businesses that invested in the learning and development of staff saw growth during 2020, compared to the 61% of businesses that saw a decline in growth due to the lack of investment in learning and development. This essentially demonstrates that training strategies were not fit for purpose in those businesses that failed to invest and this had a direct impact on overall business performance.

At Avado, we believe that creating robust learning and development strategies should be at the forefront of every business leader’s mind. Our research clearly shows the successful investment in these strategies can have. But with budgets so tight from uncertain times, how can companies invest large sums into training strategies?

So far the short-term answer to this challenge, has been to recruit new employees who possess these new capabilities that excel in new working environments. However, recruitment is a timely and costly process. As the hybrid working model is set to stay for years to come, this kind of short-term approach is not viable for companies looking to bounce back from under-performance. Companies need to be resilient in adopting a new approach to work, and we believe that investing short term in learning and development will bring long-term return for their organisations.

At Avado, we continue to partner with organisations and individuals to equip them with the skills and capabilities needed for future success. By ensuring the learner is at the focal point of training, we continue to be at the forefront of helping close the capabilities gap that exists by encouraging organisations and individuals to understand the benefits upskilling can have both for their business and the economy more broadly.