Solving the mismatch by digitally integrating training, recruitment and selection

When workers' skills do not match those required by employers, the so-called mismatch phenomenon occurs. In 2023, the mismatch between labour supply and demand due to a lack of required skills cost Italy EUR 44 billion, or 2.5 per cent of national GDP. The greatest difficulties in finding the right job profiles emerged mainly in the STEM (science, technology, engineering and mathematics) fields and in the digital transition. This can be either a vertical mismatch (inadequate skill level, such as over- or under-skilled workers) or a horizontal mismatch (inadequate skills in a certain field). This is a complex and multidimensional problem that can have profound effects on the economy, on the productivity of companies and on the well-being of workers.
In order to reduce mismatch, it is necessary to invest in continuous training and skills development, but it is also important to identify in detail all the causes.
When labour supply and demand do not coincide geographically, job opportunities may be concentrated in certain geographical areas, while in others there is a surplus of labour (geographical divergence). Then there is sectoral divergence, i.e. when workers are specialised in sectors that are declining or stagnating, while growing sectors have difficulty finding skilled labour. Therefore, it is important to create awareness of emerging and adjacent occupations, those in which the worker already has an important share of skills. Employers often look for workers with specific experience, while many applicants (especially young people) lack the required experience. Technicians and competent authorities have to confront each other in order to speed up the entry of young people into the labour market and close the skills gap, thereby reducing youth unemployment. The education and training system is often not aligned with the needs of the labour market, providing skills that are no longer in demand or not up-to-date enough.

It is worth looking at the training system in other countries of the world. There are also differences between what workers expect in terms of wages, working hours and working conditions and what companies are willing to offer. This creates differences in expectations that lead to higher staff turnover and difficulties in retaining talent as well as job dissatisfaction that reduces productivity and engagement. Again, stimulating a digital debate is useful to better frame the problem. Rigid regulations and a lack of flexibility in the labour market can prevent a rapid adjustment of supply to demand. Thus, we see reduced labour mobility and difficulty in adapting to new market demands, but also an increase in long-term unemployment. Here it is crucial to involve stakeholders in the sector, mainly institutions. Demographic changes, such as an ageing population, can create imbalances between labour supply and market needs. This results in shortages of workers in specific sectors such as health and social services and increased welfare and pension costs.

This problem is directly related to labour mobility restrictions and migration policies that may hinder the filling of vacancies in labour shortage regions. Italian courses for foreign nationals or even benefits for companies that offer free accommodation to legal immigrants or prepare them with distance learning could be envisaged. There is also a technological mismatch because the introduction of new technologies and automation can quickly make some skills obsolete.In the light of this analysis, the future of training must move towards more hybrid, flexible and customised models, exploiting innovative technologies such as microlearning and agile certifications, to quickly respond to the needs of a changing market. We are comforted by the first results of our experimentation: integrating social media, training, job search, recruitment, networking and business development in one digital environment. A sort of digital hub of innovative interconnection in the professional ecosystem that from Italy, followed by India, will reach many countries around the world.
*Ceo and founder of Yliway