HR tech strategies for navigating the Skills and Silver Tsunamis

The working world is changing. 

That’s not news to you. As the saying goes, the only constant in life is change, and the working world is constantly evolving and switching things up. 

But in recent years, it feels as if this is especially true. 

On the heels of the COVID pandemic, global economic and political turmoil, a major shift in workforce expectations, and a surge in digital transformation spearheaded by AI advancements, we’re now facing what SHRM CEO Johnny C. Taylor Jr. calls a “polycrisis”—the simultaneous Skills and Silver Tsunamis.

Together, the critical need to upskill, reskill, and constantly evolve expertise—alongside the institutional knowledge drain—creates the perfect talent shortage storm. 

And in the middle of an era where budgets are getting tighter and tighter, you can see why this storm in particular is looking to be especially choppy. 

While organizations of all sizes across industries are feeling the pressure, small and medium-sized businesses, especially those in an uphill battle to scale, often feel the heat even more than their larger counterparts.

In this article, we’ll take a look at how you can keep your organization ahead of the game by leveraging HR tech to help you build and implement a class-A, people-first business strategy.

What is the Skills Tsunami?

The Skills Tsunami is the rapid and widespread shortage of key skills in today’s labor market due to a massive shift in the capabilities working professionals need to have. 

But how bad is the skills gap? 

According to ManpowerGroup, 75 percent of employers are struggling to fill their open positions today due to a mass deficit of skilled talent.

A combination of the COVID pandemic, world politics, and digital transformation has only exacerbated a talent gap that has been growing for years. The rise of AI has offered hope to businesses looking to narrow the skills gap and increase efficiency. But it’s essential for businesses to equip their workforce with the skills to leverage this new tech effectively, especially in today’s dynamic market where adaptability is key.

On top of this, the half-life of skills is shrinking fast, with experts predicting that half of today’s workforce’s skills will be outdated by 2025. 

This all means businesses need new skill sets in abundance and it’s more critical than ever to focus on skills gap management. 

Navigating the widening talent gap

As the talent gap widens, HR leaders have a pivotal role in driving investment in upskilling and reskilling programs.

That means shifting the focus from external hires to promoting internal mobility and cultivating the skills of existing team members:

• Internal mobility programs. Focus on matching your current team members’ skills with open positions across your organization. This creates new pathways for your people to move laterally or upward within your company—boosting morale and satisfaction while filling vital roles. 
• Upskilling and reskilling. Establish training programs that help team members develop new skills that align with your organization’s future goals. Surprisingly, only 33 percent of organizations currently have internal mobility programs, and only one in five people have strong confidence in their ability to make an internal move.

What is the Silver Tsunami?

The Silver Tsunami refers to the increasing number of veteran professionals heading into retirement and taking their skills and institutional knowledge right along with them. This is happening just as newcomers are entering the workforce, leading to a drain of knowledge. 

As experienced professionals exit the workforce, companies risk losing valuable technical expertise, institutional knowledge, and organizational history, all of which are crucial to future success. 

Filling the shoes of retiring professionals with less experienced newcomers without a knowledge share program or training plan can create significant gaps in a company’s workforce expertise. 

Preserving institutional knowledge

Addressing the challenges of the Silver Tsunami is essential. The key to staying ahead of the wave is prioritizing strategies dedicated to preserving knowledge transfer and continuity. 

This is a vital step to creating pathways for senior professionals to share their expertise before they retire, or encourage them to stay on in an educational role before departing: 

• Mentorship programs. Leverage senior professionals later in their careers as mentors to younger team members. Formal mentorship programs help pass down critical information and knowledge, ensuring junior team members gain the skills and insights they need to make a positive impact. 
• Flexible work opportunities. Offer part-time, phased retirement, or “returnships” to keep more senior team members engaged in the workforce for longer. This helps them move gradually into retirement instead of a “100 to zero” approach, while helping your organization retain valuable knowledge. 

Leveraging HR tech for a transformative opportunity

Despite the challenges posed by the Skills and Silver Tsunamis, these crises offer an opportunity for HR professionals to rethink their people-focused business strategy while saving time and budget. 

With a change-ready mindset and modern HR tools, you can build a future-ready, resilient workforce. Here’s how: 

1. Prioritize internal talent and mobility

Instead of looking externally to fill gaps, focus on nurturing the talent you already have. By investing in internal mobility and succession planning, you can make the most of your current workforce, saving time and recruitment costs.

A modern HCM system can facilitate this by providing a detailed inventory of your people’s skills and qualifications. 

With these insights, you can:

• Match team members with open roles. Identify the right people for the right roles, encouraging career progression while retaining top talent.
• Fill critical skill gaps. Use HR tech to identify areas where team members need upskilling or reskilling and create tailored learning paths to close these gaps.

2. Create a knowledge preservation plan

The Silver Tsunami doesn’t have to result in an irreversible knowledge drain. With the right HR tech and people strategy, you can retain crucial institutional knowledge even as senior team members retire. 

HR tech can help you:

• Track knowledge retention. Use people analytics to identify who on the team holds critical knowledge and is nearing retirement.
• Implement mentorship and training programs. Create structured mentorship programs where senior professionals pass on their expertise to younger team members. You can also set up knowledge-sharing platforms and formal learning paths to preserve key insights for the long term.
• Preserve knowledge. By leveraging your Learning Management System (LMS) you can centralize and store training content—ensuring key expertise is accessible for future generations. You can also automate training delivery and track learning progress to streamline the transfer of critical skills.

3. Leverage people analytics for strategic workforce planning

People analytics embedded in your HCM system can give you a 360-degree view of your workforce, allowing for data-driven decision-making. This is particularly valuable when planning for the future in a landscape where both talent shortages and retirements are on the rise.

With analytics, you can:

• Plan for succession. Identify team members who can step into leadership or specialized roles, and begin training them well in advance.
• Anticipate retirement risks. Analyze workforce demographics to see which departments or roles are most affected by upcoming retirements, and proactively create strategies to address these gaps.
• Optimize workforce distribution. Use data to determine where internal mobility can fill roles, and where external hires are necessary to meet critical needs.

4. Boost employee engagement and retention

HR tech isn’t just about filling skill gaps and managing transitions—it’s also crucial for keeping your people engaged and satisfied. Engaged people are more likely to stay with your company, reducing turnover and fostering a positive workplace culture.

With engagement tools such as pulse surveys and feedback platforms, HR tech helps you:

• Monitor team member sentiment. Regularly check in with your workforce with surveys and one-on-one meeting features to identify any concerns or needs people have, ensuring that your policies remain aligned with their expectations.
• Tailor engagement initiatives. From flexible work options to wellness programs, HR tech gives you the insight and tools you need to craft initiatives that genuinely resonate with team members at different stages of their careers.
• Enhance professional development. By providing ongoing learning opportunities, as well as upskilling and reskilling programs, you can keep your people engaged and ensure they’re continuously evolving alongside your company’s needs.

Settling the Tsunamis with HR tech

The Skills and Silver Tsunamis present real challenges for HR professionals, but they don’t have to be overwhelming. With the right approach, and by leveraging the right HR tech, you can transform these potential crises into opportunities for people-focused innovation and growth. 

HR tech plays a central role in this transformation, enabling companies to upskill their workforce, keep hold of critical knowledge, and make data-driven decisions. It empowers modern businesses of every size to weather the storm and come out on the other side stronger, more agile, and ready to embrace change.