Understanding the Impact of Digital Transformation on Skills and Careers in Luxembourg

The Skills Bridge programme in Luxembourg aims to invest in employees' skills to navigate the digital transformation affecting the job market. As automation and advanced technologies reshape the economy, the programme focuses on upskilling employees and facilitating workforce mobility to adapt to the changing landscape. Through a proactive approach, the initiative seeks to enhance competencies, support companies facing digital disruption, and promote internal mobility. By addressing the skills gap and fostering career development, the programme contributes to a successful transition in the digital era.

• Luxembourg
• Skills Bridge
• Digital Transformation
• Upskilling
• Workforce Mobility

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1. www.skillsbridge.lu Luxembourg Digital Skills Bridge A programme investing in employees' skills and securing their career paths Mai 2018

2. The impact of the digital transformation on the job market The digital transformation of the economy and advances in automation are fuelling profound changes in the content and structure of employment. In this period of transition, the major challenge is to ensure the adjustment between the skills of the assets and the needs of a changing economy to allow everyone to have a good job and to make the most of the transformation in progress. Rapport du Conseil d orientation pour l emploi 09/2017 32% of jobs have a probability of between 50% and 70% of being automated and could face significant changes in their job content. +8,7% increase of jobs available in Luxembourg 2016-17. With 140 out of 3,121 vacancies declared during the month, the studies and computer development professions are the most sought after by employers in Luxembourg. ~7000 jobs are currently available in Luxembourg, of which 542 in Banking, Insurance and Real Estate and 317 in Trade, Sales, Mass Retail . Source : ADEM key figures 02/2018 Source: OECD 2018 Automation, skills use and training Source : ADEM key figures 02/2018 Source : ADEM key figures 02/2018 2

3. The impact of the digital transformation on companies Digital transformation is characterised by a fusion of advanced technologies and the integration of physical and digital systems, the predominance of innovative business models and new processes, and the creation of smart products and services. European Commission, DG Growth Digital Transformation Examples of digital transformation : Introduction of blockchain technology in transfer management activities Automation of a storage facility/production line Upgrade of the accounting software used (from version 1.5 to 1.6) Update of the software used to control the robots handling the production line 3

4. The objectives of the Luxembourg Digital Skills Bridge programme Luxembourg Digital Skills Bridge aims to become the best solution for the employee and the company facing the current technological transformation by supporting them in their organisation of work. Raise awareness and support companies whose business activities will be significantly transformed by digital disruption. Achieve a 65% internal mobility rate for the participating companies. Show the value of a proactive and preventive upskilling approach for companies, employees and society. Combine relevant assessment and upskilling solutions to develop employees competences. Coach and upskill employees whose jobs will be impacted by the digitalisation and advise them on new placement opportunities (internal or external mobility) following their motivation and potential. 4

5. Building a toolbox to facilitate upskilling and workforce mobility Companies Employees and social partners Government Know employees current skills portfolio Analyse present and future jobs Develop skills Promote mobility Understand skills and aspirations of employees Identify all opportunities linked to new jobs Develop skills through selected trainings to integrate new functions Understand aspirations of employees and companies Reduce the social risk of digital transformation Better fill job vacancies thanks to an integrated approach with existing actors (e.g. ADEM) New tool box Diagnostic Tools Platforms Financing Motivated employees Individual advice Communication 5

6. Advantages for the employee Comprehensive overview and assessment of skills, motivation and interests Matching of skills assessment with new internal or external employment opportunities ( Quality assurance of the trainings selected (recognised certifications) Individual guidance throughout the upskilling process Acquisition of new professional skills 6

7. Advantages for the company Proactive response to the impact the introduction of new technologies will have on workforce planning Inclusion of the employees into the transformation process Competitiveness and innovation Access to newly qualified staff able to respond to the new challenges posed by new jobs Positive image both external (social innovation) and external (positive impact on internal working climate) Methodological and technical expert assistance throughout the upskilling journey Retention of know-how and experience within the company Better understanding of the skills, motivations and interests of the employees 7

8. Eligibility criteria Eligibility criteria: Key questions to address: What type of digital disruption is the company being affected by? In what way is this a significant technological change? Introduction of a significant technological change to the business The company is anticipating the change The staff delegation has been consulted and given its agreement where requested Company presence and investment in Luxembourg long term engagement of the company Quality of the application Internal mobility proposition Impact How imminent are the effects of the technological change in question? What impact on the company s activity in the 6 to 18 coming months? Does the company foresee the internal mobility of its employees? 8

9. Proposed assistance Support received by the company : Technical assistance for workforce planning and employee assessment Maximum 12 days per company 1 day per employee Individual coaching throughout pilot Internal mobility: 35% External mobility, same sector: 50% Training cost per employee (reimbursement on invoices) External mobility, different sector: 80% 90% of the employee s salary, limited to a maximum of 250% of the minimum wage ( SSM ) Salary costs during training ( ch mage partiel ) 9

10. Timeline of the pilot Homologation Submission of the general application 25 May May June July - September Pilot Launch of the pilot Eligibility check 2 May 10

11. Service eHandwierk Sensibilisation Information Evaluation Mise en uvre 11