Essential skills for uncertain times

Posted 03 May 2023 by
Kevin Wood, The Myers-Briggs Company

7 min. read

Looming economic uncertainty means the threat of budgets being tightened is as real as ever. What’s one of the first places organizations tend to trim budget?

Often, it’s training and development.

But when people and teams are asked to do more with less, that’s probably when they need development training the most.

Economic challenges place bigger demands on everyone, which often results in stressed employees. Conflict is likely to increase, too. And let’s not forget the complexities of the post-pandemic work environment, which we’re still in the early stages of understanding.

Here’s why people development should be prioritized, not neglected, in times of uncertainty.

The new challenges for organizations

Deloitte’s global human capital report finds that organizations will need to redesign the way they work.

Why? Because, in a world of constant change where change now means something different than before (we’ll explore the new definition shortly), organizations will need to be more flexible and agile.

One way to achieve this is to focus on skills—and rethink how they’re used.

Focusing on employees’ skills means taking advantage of the skills and potential that already exists in an organization, and then using it more widely. This boosts agility, flexibility, and adaptability.

But to do this, organizational structures need to think and act in a bigger, broader way than before. Instead of recognizing that person X has skill Y for job title Z, leaders could gain more by seeing that person X has skill Y for job title Z and any possible use across the business. Z++, perhaps.

And this, Deloitte suggests, is where organizational redesign comes in.

A traditional, rigid hierarchy where skills are confined to specific roles in specific departments doesn’t bode well for the ever-changing times we’re now living in. It doesn’t give the organization the agility it needs to succeed.

Why invest in times of uncertainty

McKinsey (2021) also believes skills are critical for uncertain times. “Developing existing talent is among the most crucial investments organizations should make amidst talent scarcity and the high cost of external hires. A new employer-employee contract on reskilling is needed; employers should actively invest in upskilling to accommodate shifting needs, and constant learning should be a core expectation of employees.”

Their report goes on to say, “Not only can this increase worker productivity by 6–12 percent, but it also increases employee loyalty and satisfaction, reducing their likelihood of leaving.”

They draw on their own research to show that those who committed to through-cycle investment during economic crises delivered higher returns to shareholders than those who didn’t.

If the ‘boundaryless workplace’ (Deloitte) and through-cycle investment (McKinsey) make the case for skills-focused development in uncertain times, which skills should organizations focus on?

Change has changed

In his Psychology of Change webinar, John Hackston, Head of Thought Leadership at The Myers-Briggs Company, explores the new definition of change.

He notes that although change has always been with us, the nature of change is different now—and it has a greater impact.

“Change is coming at us faster than it did before and that means we have to adapt to faster speeds than we’ve been used to in the past” says Hackston in the webinar. “There’s a lot of literature out there that talks about the fact that originally, a lot of organizations were built and managed and designed to bring about stability but often that no longer works. We can’t just make small, incremental changes and expect to keep up.”

People and organizations are now living and working with:

This is being described as disruptive change.

Professor John Kotter, a leadership and change specialist, says, “We are in ‘disruptive change’, a more rapid and complex changing environment. As a result, there is a growing gap between the amount, rate and complexity of change, and our human capacity to keep up.”

For Hackston, it’s the ‘human capacity’ that’s the key consideration. Change—specifically, disruptive change, like we’re encountering now—has a psychological impact on people.

Developing essential skills for uncertain times

Bringing the above points together makes a simultaneous case for leaders, managers, and HR professionals to:

The good news is that self-awareness training can be the foundation for both.

1: Make a strengths and skills inventory

To be able to deploy talent effectively across the organization, it helps to first know what talent’s already there.

But instead of focusing solely on skills that most obviously relate to jobs or roles, try to get behind all that. Remember, people’s core strengths aren’t always immediately visible. They might not even be being used in their current role.

The question we’re really asking is, what are your people’s best qualities? What is it about them that helps them perform well?

A self-awareness tool like the MBTI® assessment explores all this. It helps people understand their core qualities, strengths, and motivators, which is invaluable data for organizations that want to be flexible, adaptable, and agile.

For leaders and managers, it brings people’s potential into the equation.

“Organizations must consider investing in their existing workforce’s skills as well as attracting and retaining the right new talent,” says McKinsey in The future of the workforce: Investing in talent to prepare for uncertainty. “Developing existing talent is among the most crucial investments organizations should make amidst talent scarcity and the high cost of external hires.”

In our capacity as personality professionals, we’re advocating for essential (‘soft’) skills—that is, non-technical skills—being a vital component in any skills-oriented investment.

2: Close the well-being gap

Hackston considers four factors that have an impact on the human capacity for change. They are:

Looking at well-being, there’s evidence of a gap. Gallup found that less than one in four US employees feel strongly that their organization cares about their well-being.

And yet, well-being has a significant impact on key performance indicators. This means that low well-being contributes to fatigue, stress, demotivation, reduced morale, disengagement, absenteeism, and quiet quitting.

For this reason, developing employee well-being strategies is one of Hackston’s four recommendations above for dealing with disruptive change. Such well-being strategies include:

The last of these points is shown to have disproportionately positive results regarding employee well-being. Watch the Psychology of Change webinar to find out more (and hear the other three recommendations for dealing with disruptive change).

How else can essential skills help organizations deal with change and uncertainty?

Here are three more reasons why understanding personality type makes sense in uncertain times.

The economy is cyclical, so there’s no way around downturns and uncertainty. But there are ways you can utilize the strengths of your people beyond their current role and job description. Doing this helps bolster your organization by reaching employees’ potential and creating agile organizations that can respond to change as quickly as it’s happening.

Ready to take action? Check these resources

Posted in