But if organisations want to remain competitive they must look to the future and think about the capabilities they should be building now. Similarly if individuals want to remain employable with the option of accessing interesting and stimulating work opportunities, they too, have to think about what skills they should be working to develop. It is important to think about what's going to be in demand in the 2020 workplace? And how people are going to remain productive and attractive to employers through an increasingly longer working life?
The CIPD's recent work on the drivers of sustainable performance (Shaping the Future) demonstrates that successful organisations are those that create agility and adaptability in their workforce. This enables them to quickly re-deploy people in response to changing demands, to flex to the needs of the business and to create the capacity to take advantage of new opportunities as they present themselves. Research also shows that individuals are more engaged if their work is stimulating, if they believe their employer is genuinely interesting in their career and is able to offer them new career opportunities. Supporting people to make decisions about how to develop their career should therefore bring benefits for all if it is done right.
However, recent research carried out by the CIPD looking at the practice of career management (Managing careers for organisational capability) points to a number of challenges to be overcome before this utopian world can be reached, where everyone is receiving development in the skills that will keep them employed and organisations create a pool of talented, flexible and employable workers who can move into different jobs quickly and easily.
This is the biggest challenge - employability. Individuals value employability, the opportunity to develop skills and experience, which make an individual a fit for a variety of roles. This makes employees feel more secure in their employment and opens up a range of possibilities both with their employers and in the wider labour market. This translates into higher levels of engagement and performance. However, employers are wary of employability if they think they are investing in training, which will equip people to move on.
Employers want employment ready people with the skills and experience to fit pre-determined "jobs". They want to know they have a number of people ready to move onto the next rung of the career ladder or into certain jobs if demand increases or people leave. They only want to invest in training and development that will bring a benefit to them.
This can result in rigidity and inflexibility if people are being directed into jobs that don't make the best use of their skills but represent a step up the career ladder. It can lead people down career-cul de sacs, where employees are over specialised with narrow experience and hence over committed to one particular employer or career path.
Capability building within organisations needs a re-think about how employability is valued and how jobs are designed that enable people to play to their strengths, while making sure that the operational requirements of the organisation are met.
The CIPD research found that the best outcome from career management is achieved when support and guidance reflects the current and future capabilities required for the organisation to fulfill its strategy and meets its objectives. In addition, the needs of individuals to develop marketable skills which enable them to feel secure and challenged in their jobs must also be met. If it is, people are likely to be more engaged, performance will go up and people will add more value to the organisation. Far from encouraging people to seek employment elsewhere, employability actually improves retention because people are able to find the challenge and motivation they want without changing employer.
Rather than diminishing the pool of "job ready" talent the employer finds themselves with a more flexible adaptable workforce, which can grow with "smart" jobs that stimulate learning and growth for both the individual and their employer.
Angela Baron, organisational development and engagement adviser, CIPD
