Recently, I have had insightful discussions with senior executives in the automotive and mobility sector regarding the skills gaps. Most people acknowledge that there is a cost associated with addressing their skills needs. Many have assessed the current and future shortages within their organizations. However, as time passes, the situation is becoming critical and is now being recognized as a financial risk at the board level.

Last year, we conducted interviews with 44 senior leaders across different areas of the sector, including R&D, supply chain, manufacturers, and retailers, to identify the missing skills. We then created a roadmap to help businesses navigate through this crisis. Later this month, we will release a follow-up report that examines the cost implications of this skills gap.

The main questions that businesses are currently facing include the actual cost of the skills gap, the benefits of addressing the situation, and the consequences of doing nothing about it. It is important to note that the capability to address these issues varies depending on the company size, maturity, and sector within the industry. Some companies may not have the time and resources to dedicate to this, while others do. Additionally, certain areas of the business are easier to quantify in terms of cost than others.

For example, in the retail sector, the revenue lost for each day that a technician is absent is easily measurable. However, in other areas of the business where a role involves multiple variables, it becomes challenging to determine the value of a team member who is responsible for several projects.

How much are businesses spending on short-term solutions that temporarily fill the gaps while they search for permanent solutions? Temporary workers from agencies without industry knowledge may be hired, with no investment in their training as they are expected to move on. Furthermore, there is a reliance on the goodwill of the current workforce. They are asked to work longer hours, take on additional responsibilities, and compensate for the missing skills. This places both physical and mental strain on employees, potentially leading to burnout, lack of morale, and an increased risk of employees leaving, thereby exacerbating the problem at hand.

Short-term options may seem like the only choice when there are project deadlines to meet. However, it is crucial to find a sustainable long-term solution to avoid higher costs and other compromises.

Navigating this situation is complex no matter how you approach it. That is why we have focused our research on speaking with 42 business leaders in the automotive and mobility industry to quantify the risk. Our model will provide a range of figures to demonstrate the financial benefits and opportunities of investing in skills while also highlighting the potential drawbacks and risks of failing to do so.