Education to Employment: Designing a system that works

50% of the world’s CEOs say they have considerable trouble finding the right people to fill openings. And yet, 75 million young people worldwide currently seek employment. Educators insist that they are not the problem and that their offerings remain perfectly adequate. So what really needs to be done to best bridge the skills gap?

In this video, the McKinsey & Company’s Diana Farrell and Mona Mourshed present the findings of a study on education and employment involving 8,000 students, employers, and educators across nine European, American, and Asian countries, discussing possible ways to meet the needs of all concerned stakeholders. According to the study, social and economic instability in both emerging and developed countries stems principally from a lack of collaboration between educators and business people. To remedy this situation, businesses must commit to becoming more involved in designing educational programs, to investing in educational institutions, and to guaranteeing jobs for students. These steps will break down the wall between the academic and business worlds.

Many companies have heard the call and are already creating in-house educational units to deal with this issue. The skill development center created by IL & FS, an Indian systems development company, numbers among the successful initiatives studied by Farrell and Mourshed. Since its establishment in 2010, the center has enabled 200,000 people to receive training and find employment.

Companies are going to have to play an increasingly greater role in professional education and training, because indebted governments are set to continue to contribute less and less. Business managers should therefore reconsider their former ideas about talent management and recruitment. What kind of people do companies need to ensure the future? People with degrees or those who have received in-house training?

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The skills gap: Reconciling talent supply and demand

A synthesis of several publications, accompanied by an interview with Srikantan Moorthy, senior vice president and group head, Education and Research (E&R), Infosys Limited, May 2012.
Business Digest nº 227, June 2012.