Skill in the Game

A bold new solution for skills transformation

BY JASON TYSZKO

THE U.S. WORKFORCE, some 170 million people strong, is the world’s most productive. However, workers’ skills are quickly becoming outdated. Recent World Economic Forum research estimates that 39% of workers’ core skills will change within the next five years, driven primarily by technological advancements. To ensure economic mobility and global competitiveness, the U.S. workforce will need a massive and innovative skills upgrade.

In response to this urgent issue, the U.S. Chamber of Commerce Foundation has developed an innovative solution. The Skill Savings Account concept creates a financial instrument that addresses the growing skills gap with a proven framework. Designed like existing Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs)—and, ideally, similarly incentivized through federal and state tax policy—these accounts would help individuals save money to pay for qualified upskilling and reskilling expenses. In addition to offering a bold solution, Skill Savings Accounts deliver several important benefits.

Incentivizing Employee Growth

Skill Savings Accounts would complement existing employee education benefits, such as tuition reimbursement programs, in a more workercentric way, prioritizing skill development. In addition, Skill Savings Accounts could be funded with relatively small contributions up front, lowering the barrier to entry for both employees and employers. Much like HSAs, the funds would be easily accessible, and the accounts are designed to be portable, encouraging employees to invest in themselves throughout their careers.

Investing in Employees

While the U.S. spends $30 billion per year on Pell grants, just a fraction of that—$3.5 billion—is devoted to training. Even when paired with existing organizational resources, it’s not enough. Skill Savings Accounts, designed for today’s knowledge-based, technology-enabled workers, could bridge the gap. In addition, the accounts can be combined with other skills-based innovations, such as Learning and Employment Records (LERS)—digital tools that store and manage skills data—to better identify and fulfill training needs.

Building a Billion-Dollar Marketplace

Skill Savings Accounts also have the potential to create a new marketplace. If just one-third of the current workforce had Skill Savings Accounts with balances ranging from $1,500 and $2,000 each, that critical mass would create an upskilling marketplace worth approximately $100 billion without significant taxpayer commitments or government administration. That’s about three times the benefit Pell Grants provide each year.

Improving Global Competitiveness

The marketplace fueled by Skill Savings Accounts could result in an estimated 500 million new skills being developed. When workers can keep up with new skills required to do their jobs, they improve their marketability and earning power. When companies can build and retain a skilled workforce that stays ahead of rapidly evolving demands, they are more competitive globally, including in fast-growth areas like technology, additive manufacturing, artificial intelligence, machine learning, and sustainability.

The Solution We Need Now

While there is no one “silver bullet” to entirely resolve the skills gap, which is careening toward a crisis level, Skill Savings Accounts would use a well-established model to ensure workers have the skills they need.

The U.S. Chamber of Commerce Foundation is exploring industry and population-specific pilot programs. This is the power of business and innovation to do good.