A VUCA-ready workforce: exploring employee competencies and learning and development implications Free

In recent years, organisations have been confronted with significant and unforeseen events such as financial crises, the COVID-19 pandemic, geopolitics and trade conflicts, all of which have had profound impacts on the global economy and society as a whole (Baran and Woznyj, 2020; Bennett and Lemoine, 2014; El Hathat et al., 2023). Scholars and practitioners are increasingly using the acronym VUCA (volatility, uncertainty, complexity and ambiguity) to refer to these dynamic environmental changes (Bennett and Lemoine, 2014). The term VUCA is now frequently used to describe the ever-shifting external landscape that directly or indirectly affects business operations.

In a VUCA world, it is imperative for individual employees to learn and develop new competencies (Nowacka and Rzemieniak, 2021). Failing to do so can lead to a range of challenges, from career stagnation and obsolescence to a diminished ability to thrive in rapidly changing environments (Kim et al., 2023). Conversely, the active pursuit of competency development offers numerous benefits such as enhanced adaptability, problem-solving capabilities, competitiveness in the job market and a broader skill set (Bourne, 2021). It also contributes to personal and professional growth, innovation and resilience. Ultimately, both individual employees and organisations stand to gain significantly from a commitment to continuous learning and skill development in a VUCA world.

In today’s VUCA environment, individuals face considerable pressure to adapt to various scenarios and secure their own survival and growth. In this dynamic world, individuals must continuously confront innovation, complexity and change to achieve personal goals and maintain their own relevance in challenging conditions (Dima et al., 2021). Therefore, to ensure personal success and resilience, individuals must proactively develop a new set of competencies that align with the rapid pace of change and complexity in their surroundings. Traditional competency frameworks do not include competencies that help individuals navigate unpredictable and ambiguous environments. The literature on competencies is dispersed and originates from different fields such as organisational psychology, strategy and general management; competencies may be technical, trade-specific, job-specific, or industry-specific (Shet et al., 2017). In the VUCA world, employees need to navigate not only organisational challenges but also the personal challenge of staying relevant. Consequently, there is a pressing need for individuals to cultivate these competencies in order to thrive in such an environment (Nowacka and Rzemieniak, 2021).

VUCA serves as a framework to describe the demanding conditions and circumstances within which organisations function (Bennett and Lemoine, 2014). Volatility refers to the unpredictability and instability of change, uncertainty pertains to the lack of foresight on future events and their consequences, complexity corresponds to the intricate interconnections that form a complex web of information and procedures and ambiguity signifies the absence of historical precedent for predicting outcomes because of limited knowledge and understanding of the causes and effects of events and their interrelationships (Bennett and Lemoine, 2014).

Organisations are affected by a multitude of factors such as technological advancements, societal shifts, and geopolitical changes. Literature discussions tend to focus on the broader context rather than the specific employee capabilities necessary in the evolving VUCA landscape. Consequently, there is a noticeable gap in the understanding of the competencies that employees need for effective operation in the VUCA world (Taskan et al., 2022). Although scholars have acknowledged the absence of discourse on functional capabilities, a comprehensive perspective from stakeholders is not yet available. As a first step towards filling these research gaps, I attempt to find answers to the following research questions:

Through this study, I emphasise the significant value of establishing a VUCA competency framework as a roadmap for the development of individual employees in a VUCA world. I create a comprehensive framework of VUCA competencies for employees, which is essential in the current landscape, thus making a significant contribution to both theory and practical applications. The primary focus of this study is on the crucial realm of employee development for these competencies through an L&D agenda. I extend the proposed competency framework by including behavioural dimensions of competencies, which are necessary for acquiring and nurturing managerial talent in human resource development. The outcome of this study will help academia, consulting, industry and society to create human capital that is relevant to the VUCA world. I use human capital as the theoretical underpinning and framework synthesis as the methodological approach to develop the framework, thus laying the foundation for future research in this area from the employee, L&D and organisational perspective.

In the VUCA era, the nature of employment has undergone a profound transformation. Industry is witnessing the emergence of a gig economy and freelancing. Automation and technology have redefined the job market and displaced routine tasks, thus highlighting the need for specialised skills in fields such as data analytics and artificial intelligence (AI). The COVID-19 pandemic accelerated the shift towards remote and flexible work arrangements, enabling employees to work from anywhere. These trends in human capital reflect the changing nature of work, education and skills required in different eras. In future, human capital will continue to evolve in response to technological, economic and societal changes.

Human capital theory as an economic and sociological concept emphasises the importance of human resources (HR), skills, knowledge and abilities in driving economic growth and productivity (Becker, 1964). Human capital refers to the collective knowledge, skills, experience and abilities possessed by the workforce within an organisation. It is often considered an intangible asset that can be developed, improved and invested in to yield long-term benefits. The discussion of human capital theory in the context of employee competencies involves examining how the skills and capabilities of individual employees contribute to the overall success and competitiveness of organisations. Competencies encompass a combination of behaviours that are crucial for achieving desired results and outcomes (Bartram, 2005). These behaviours are observable and result from a blend of knowledge, skills and attitudes (KSAs), ultimately contributing to superior job performance (Allen et al., 2018; Boyatzis, 2008; Campion et al., 2019; Shet et al., 2019; Spencer and Spencer, 1993). In today’s rapidly changing business environment, the competencies of employees play a crucial role in an organisation’s ability to adapt and stay competitive. Human capital theory suggests that employees with valuable competencies are more marketable and can command higher wages and better benefits (Mincer, 1974). When individuals possess the necessary competencies for their roles, they are more likely to excel in their tasks, meet objectives and contribute to their organisation’s success (Campion et al., 2011). The cultivation of a diverse set of competencies is an investment in one’s future and can lead to greater opportunities and personal fulfilment as these competencies become a crucial asset for individuals navigating VUCA challenges (Wolanin, 2022). Competent employees who possess the right skills and capabilities are well equipped to navigate these challenges, ultimately contributing to an organisation’s resilience and success in such environments.

As employee competencies in the context of VUCA is a new topic of interest, the literature on the topic is scarce. I used the integrative review method to understand the challenges in a VUCA world and to identify emerging employee competencies in this context. Within this method, this study adopted the “framework synthesis approach” to uncover these challenges and propose a framework for VUCA competencies. Given that VUCA competencies is a relatively novel topic that that has not undergone comprehensive review, the integrative review was likely to result in an initial or preliminary conceptualisation of the subject, including the development of a new model or framework, rather than a reconfiguration of existing models (Torraco, 2005; Ritchie et al., 2013; Brunton et al., 2020; Shet et al., 2021). The synthesis process involves blending existing ideas with fresh insights to present the topic or issue in a novel and clearer manner.

Framework synthesis as a method is used to perform integrative reviews that delve into the complexities associated with employee competencies in VUCA environments. It is derived from framework analysis, a technique that was developed by Ritchie and Spencer (1994) for analysing primary research data and was originally designed to address policy-related concerns. Framework analysis provides a structure that can be used to collate and organise different components of an assessment, a process called “framework synthesis” (Carroll et al., 2011). The stages of framework synthesis align with the systematic review process, although the steps and processes may overlap to some extent. I chose framework synthesis due to its distinct advantages over traditional systematic review methods, which tend to be inflexible. Framework synthesis offered me the flexibility to focus on the research questions through an iterative process until the review was complete. The method comprises five stages: familiarisation, framework selection, indexing, charting and mapping and interpretation (Figure 1) (Shet et al., 2021).

During the familiarisation phase, reviewers first acquaint themselves with current discussions and concepts related to the subject by drawing from various sources. They identify an appropriate framework – a conceptual framework, a policy framework, a logic model, a causal chain, or an established theory – that could potentially elucidate the challenges at hand. In the context of this study, after gaining a comprehensive understanding of VUCA and its scope, the reviewer had to comprehend the challenges of VUCA in organisations. Due to the multifaceted nature of these challenges, it may not be feasible to find all the answers solely within the human resource management (HRM) domain. Therefore, I expanded the familiarisation stage to encompass not only HRM but also other domains so as to obtain evidence that highlighted the significance of addressing VUCA-related challenges in organisations.

In the framework selection phase, I conducted a review of the literature to identify a suitable conceptual framework that could apply to the studies within the scope of my research. A purposive search strategy was used to identify studies that could address the research questions and the corresponding scope. A systematic search of the keyword “VUCA” in the Web of Science (WoS) and Scopus databases yielded 368 and 244 papers, respectively. To ensure consistency and transparency in evaluating all the retrieved results, I screened each of these research papers on the basis of predefined eligibility criteria (inclusion and exclusion) aligned with the research questions. These criteria determined the relevance of a paper to human capital or HR. After screening, 110 papers were obtained. The full-text versions of these papers were subsequently retrieved and screened again to confirm that they met the predefined criteria.

In the indexing phase, I meticulously reviewed the selected papers and extracted data using the initially identified conceptual framework to ascertain the relevance of the papers to the review questions and to identify the principal characteristics of the papers. In the data extraction process, I first identified organisational challenges within a VUCA environment and then examined the associated people challenges. The coders aimed to find responses to questions such as “Considering the characteristics of VUCA that pose both organisational and human resources (HR) challenges, which competencies should employees prioritise to navigate the VUCA landscape?” From the papers, I compiled a list of all the challenges posed by the VUCA environment, thereby preparing for the next stage of charting, in which I sought to derive meaning from the collected data.

During the charting phase, I analysed the challenges identified in the previous stage and divided them into four categories depending on the reason for the challenge: volatility, uncertainty, complexity and ambiguity. I performed this process manually and discussed the significance of each challenge in detail before including it in the study. I then synthesised the findings on the basis of the categories.

Finally, in the mapping and interpretation phases, I contextualised the identified themes within the context of the original research questions. The findings of the review are shown in Table 1 to facilitate interpretation. Through this coding endeavour, overarching coding patterns were identified, leading to the emergence of key employee competencies pertinent to a VUCA world. This process was far from straightforward, as it necessitated extensive deliberations that gave rise to deep questions such as “Does this qualify as a competency?”, “Is it an essential competency?” and “Is it too broad, or is it a critical competency?” Qualitative discussions between the two coders during this rigorous process also contributed to inter-rate reliability. To further enhance reliability, the data were cross-verified using both a simple percentage agreement (Hayes and Hatch, 1999) and Cohen’s kappa coefficient (Landis and Koch, 1977). During this phase, the coders categorised competencies based on their association with the employee's mind (cognitive competency), the employee's surroundings (cross-cultural competency), the employee's abilities (analytical competency), or the employee's self-effectiveness (personal effectiveness competency) in navigating VUCA challenges.

In this study, the identified VUCA competencies are categorised as cognitive, analytical, cross-cultural and personal effectiveness competencies (Figure 2).

Cognitive competencies refer to a person’s abilities and skills that are associated with mental processes and intellectual functions. Cognitive competencies are fundamental to how people perceive and interact with the world, and they play a crucial role in overall cognitive functioning and intelligence (Anzengruber and Goetz, 2018). Cognitive competencies provide individuals with the mental tools and abilities needed to make sense of and adapt to the complexities of a VUCA world. They enhance an individual’s capacity to process information, make decisions and respond to changing circumstances with agility and resilience. Cognitive competencies contribute to an individual’s capabilities and play a vital role in shaping an individual’s economic and personal prospects. Investments in cognitive competencies through means such as education and training are essential for realising the potential benefits of human capital. The findings of this study revealed that cognitive flexibility, agility mindset and personal ambidexterity are important for effective navigation of the VUCA world.

Cognitive flexibility is an individual’s capability to adapt their behaviour and thought process whilst responding to a turbulent environment (Nowacka and Rzemieniak, 2021). Cognitive flexibility involves switching attention between different topics, generating diverse ideas and adjusting strategies based on new information. In a VUCA world, employees with cognitive flexibility can address various challenges more effectively. Individuals with high cognitive flexibility are better equipped to embrace change through experimentation with new ideas (Laureiro-Martínez and Brusoni, 2018). Such employees explore various solutions to a problem and quickly switch to another strategy if one does not work. Furthermore, such employees can adapt their plans and actions in response to volatile circumstances (Bywater and Lewis, 2019). They are more effective in dealing with uncertainty and making decisions when information is incomplete or contradictory. Cognitive flexibility enables individuals to see connections between seemingly unrelated information in ambiguous situations and to think of novel solutions. Cognitive flexibility is crucial because it helps people adapt to changing systems and determine the steps and tools needed to achieve employee L&D goals. In uncertain situations such as complex negotiations, employees with higher cognitive flexibility ensure success for their organisation. Higher cognitive capability facilitates instant realisation of failure or changing of a strategy. Employees require a higher level of flexibility for not only generating new strategies but also handling resource allotment, day-to-day execution and simultaneous demands of various types of stakeholders.

Agility is a set of skills and attributes that enable individuals and teams to swiftly and effectively adapt to changing circumstances, respond to challenges and seize opportunities (Eilers et al., 2022). Agility is characterised by the ability to be flexible, responsive and resilient in the face of uncertainty, complexity and rapid change. The competency of agility is highly valued in today’s dynamic and competitive business environment, as it helps individuals stay relevant, thrive in changing markets and seize emerging opportunities whilst effectively managing risks and challenges. In VUCA situations, which are characterised by sudden and unpredictable changes, agility enables individuals to quickly adapt to new circumstances and pivot when necessary to respond to emerging challenges and opportunities (Baran and Woznyj, 2020). Agility ensures that individuals and teams can work together effectively, leveraging diverse perspectives and skills to address complex issues. It enables organisations to swiftly adapt their products and services to changing customer preferences and market dynamics. Leaders with the agility competency are better equipped to guide organisations through change, inspire their teams and foster a culture of adaptability and continuous improvement. The agility mindset can help employees to quickly adapt to sudden transitions in the organisational environment, thrive in complicated situations and smoothly navigate ambiguity (Troise et al., 2022). This characteristic not only enables employees to excel individually but also cultivates a more adaptable and flexible organisational environment. Moreover, agile learners have a broad mindset and consistently challenge the status quo. They are not scared to step outside their comfort zone (Baran and Woznyj, 2020; Worley and Jules, 2020). Information technology (IT) organisations have embraced an agile way of working by using Scrum frameworks for project management.

Personal ambidexterity is an individual’s ability to balance and integrate two seemingly opposing cognitive approaches or mental orientations: exploration and exploitation (Kim et al., 2022). The competency of ambidexterity refers to the ability to seamlessly navigate between these two orientations. Exploration represents the willingness and capability to seek out and experiment with new ideas, technologies and approaches. It involves a focus on novelty, creativity and risk-taking. People with an exploratory mindset are open to change and continuously look for innovative solutions, even if the solutions involve uncertainty and experimentation. Exploitation signifies the ability to efficiently use existing knowledge, resources and established processes to maximise current opportunities. It involves optimising and refining existing systems, products, or services. People with an exploitative mindset are efficient, focussed on refinement and often risk-averse. An ambidextrous mindset enables individuals and teams to adapt to changing circumstances and effectively address both short-term and long-term goals. VUCA situations often require employees to quickly pivot and adapt to new circumstances. Ambidexterity helps employees determine when they should explore new solutions and when they should leverage existing knowledge and resources to address evolving challenges. The competency also helps employees maximise the efficiency and effectiveness of existing processes and operations, which is vital for maintaining productivity and delivering consistent results (Srinivasan and Makhecha, 2019). In a VUCA world, employees need to balance the pursuit of new opportunities (exploration) with the efficient use of existing resources (exploitation). Ambidexterity enables individuals to maintain this balance, ensuring that they can adapt to change and uncertainty whilst maintaining operational stability (Liu et al., 2022).

Analytical competencies refer to an individual’s capacity to gather, evaluate, interpret and draw meaningful insights from data and information. Analytical competencies are closely related to innovation and problem-solving abilities. Individuals with strong analytical skills are better equipped to identify and address problems, develop creative solutions and contribute to innovation in their respective fields. These competencies contribute to an individual’s overall development by enhancing their productivity, earning potential, adaptability, problem-solving skills and capacity for innovation. The findings of this study indicated that in a VUCA environment, complex problem solving and creativity are the analytical competencies essential for success (Wolanin, 2022).

The competency of complex problem solving refers to an individual’s ability to effectively address intricate, multifaceted issues or challenges that do not have straightforward or readily available solutions (Wüstenberg et al., 2012). Complex problem solving involves a structured and systematic approach to understanding, analysing and solving problems that may involve numerous variables, interdependencies and uncertainties. This competency is crucial in a wide range of contexts, from business and engineering to science and everyday life. It enables individuals to tackle VUCA challenges that do not have clear-cut answers and to effectively navigate uncertain and dynamic environments. VUCA scenarios often involve complex, multifaceted problems that lack straightforward solutions (Hongchai and Weber, 2023). Competence in complex problem solving enables employees to break down these challenges into manageable components and develop comprehensive solutions. VUCA environments are characterised by frequent and unpredictable changes. Employees whose complex problem-solving skills are strong can adapt quickly and effectively to new and unexpected challenges. They can better assess, manage and mitigate risks because of their deeper understanding of the various factors at play in complex situations. Developing the competency of complex problem solving is personally enriching and can lead to career advancement, enhancing an employee’s value at the workplace. Individual employees whose complex problem-solving skills are strong contribute to the organisation’s overall ability to thrive in a VUCA environment by addressing challenges and seizing opportunities effectively (Stein, 2021).

Creativity is the ability to generate novel and valuable ideas, solutions, or expressions by thinking innovatively and imaginatively. It involves the capacity to approach problems and challenges in unconventional ways, make new connections between ideas and produce original outcomes (Milne, 2020). Creativity goes beyond artistic expression and is a vital skill in various aspects of life, such as problem solving, innovation and personal development. Creativity includes both divergent thinking (the capability to explore multiple ideas and perspectives, even when they may seem unrelated and to consider a wide range of possibilities) and convergent thinking (the skill to consider diverse ideas and distil them into practical, workable solutions or expressions). The competency of creativity is highly valued in a wide range of professions and industries, as it contributes to innovation, competitiveness and the ability to adapt to change. In VUCA scenarios, hidden opportunities exist amid the chaos (Millar et al., 2018). Creative employees can identify and leverage these opportunities, contributing to the organisation’s growth and success. VUCA environments often present complex and novel problems that require creative solutions (Horstmeyer, 2020). Employees with a high creativity competency can generate innovative ideas to address these challenges; thus, they are effective problem-solvers.

Cross-cultural competencies refer to a set of knowledge, skills, attitudes and behaviours that enable individuals to effectively interact, communicate and work with people from different cultural backgrounds. These competencies are essential for building positive relationships, collaborating with colleagues and navigating the social aspects of the workplace. Cross-cultural competencies are valuable assets for employees in VUCA environments because they enable individuals to navigate the interpersonal and social aspects of complex and rapidly changing situations. Human capital theory recognises that individuals with cross-cultural competencies can help organisations seize international opportunities, expand their customer base and increase their revenue and profits. In this study, cross-cultural intelligence and cross-cultural collaboration were identified as essential competencies for effectively navigating VUCA challenges.

The competency of cross-cultural collaboration is the ability of individuals to work together effectively with people from diverse cultural backgrounds, often in multicultural or global settings (Tarba et al., 2021). It involves collaborating and communicating across cultural boundaries, respecting and appreciating differences and leveraging the strengths of a culturally diverse team to achieve common goals and objectives. A VUCA environment often involves interactions with a wide range of stakeholders, such as customers, partners and colleagues, from different cultural backgrounds (Shliakhovchuk, 2021). The competency of cross-cultural collaboration is essential for effective communication and relationship-building. VUCA environments demand a culture of diversity and inclusion. Employees with this competency can work effectively with colleagues from diverse backgrounds, fostering a more inclusive and harmonious work environment. Teams with a collaborative mindset tend to be more resilient in the face of adversity. They support each other emotionally and professionally, making it easier to bounce back from setbacks and to cope with stress and pressure. VUCA situations demand access to relevant and timely information. A collaborative mindset fosters open communication and knowledge sharing amongst team members, which can improve decision-making and problem solving (Allen et al., 2018). In VUCA situations, conflicts can arise due to stress and uncertainty. Collaborative employees excel in constructive conflict resolution, helping maintain a positive team atmosphere.

Cross-cultural intelligence is the ability to effectively navigate and interact within diverse cultural and social contexts (Setti et al., 2020). It involves having the understanding, awareness and adaptability necessary to relate to individuals and groups from different cultural backgrounds and respecting and valuing their customs, norms, beliefs and values. The competency of cross-cultural intelligence is highly valuable in today’s interconnected and diverse world, as it facilitates effective communication, collaboration and relationship-building with individuals from various cultural backgrounds. It is essential in personal and professional settings, as it promotes inclusivity, reduces misunderstandings and enhances the ability to work harmoniously in multicultural environments. In a VUCA environment, individuals often interact with colleagues, partners and customers from diverse cultural backgrounds. Cross-cultural intelligence enables the individuals to communicate effectively and respectfully, reducing the likelihood of misunderstandings and conflicts. A cross-culturally intelligent individual fosters a culture of diversity and inclusion (Shliakhovchuk, 2021), which is vital in VUCA environments, as diverse perspectives can lead to more creative problem-solving and a broader range of solutions. In VUCA markets, understanding the socio-cultural aspects of customer behaviour and preferences is essential. Cross-cultural intelligence helps employees tailor products, services and marketing strategies to meet diverse customer needs. Cross-cultural intelligence enables employees to work effectively with individuals from diverse backgrounds and fosters productive cross-cultural collaboration (Allen et al., 2018).

Personal effectiveness competencies, also known as personal skills or self-management skills, encompass a set of abilities that enable individuals to efficiently manage themselves, their time and their resources. These competencies are essential for personal development, productivity and achievement of individual and organisational goals. Human capital theory acknowledges that individuals with higher resilience can manage stress, build strong relationships and handle interpersonal situations effectively, making them valuable assets in the workplace. In this study, personal resilience, adaptive mindset and continuous learning were identified as the personal effectiveness competencies required for navigating a VUCA world.

Resilience is the ability of individuals and teams to withstand and recover from adversity, setbacks and stress, whilst adapting and growing stronger in the face of challenges (Labrague and Santos, 2020). It involves the capacity to effectively cope with difficulties, maintain mental and emotional well-being and bounce back from setbacks. The competency of resilience is essential in personal and professional life, as it helps individuals and organisations navigate the uncertainties and challenges that arise in a complex and rapidly changing VUCA world (Gao et al., 2021). Resilience includes persistence, optimism and emotional regulation at the cognitive level to cope with VUCA-related challenges. In a VUCA world, change is constant and often unexpected. Resilience helps employees adapt to these changes by reducing the negative impact of stress and anxiety, making it easier to embrace new circumstances and challenges. VUCA environments are characterised by high levels of uncertainty (Breen, 2017). The competency of resilience equips employees with the emotional tools to handle ambiguity, make decisions in the face of incomplete information and manage the anxiety associated with unpredictability. Resilient individuals are more likely to maintain their productivity and performance even in challenging and demanding circumstances, which is crucial in a VUCA environment. Resilience is significant in VUCA scenarios because it enables individual employees to not only survive but also thrive in the face of volatility, uncertainty, complexity and ambiguity. It equips them with the emotional and psychological tools needed to withstand the pressures of such an environment whilst maintaining their well-being and productivity. Individuals with this competency excel at recognising patterns and relationships in information and can, therefore, make connections between seemingly unrelated ideas.

Continuous learning is the ability and commitment of an individual to acquire new knowledge, skills and insights on an ongoing basis (Rowold and Kauffeld, 2008). It involves an individual’s proactive and self-directed approach to personal and professional development, with the goal of staying current, adapting to change and improving their capabilities over time. Continuous learners recognise that learning is not limited to formal education but is a lifelong journey that extends into all aspects of life. Continuous learning is a critical competency in today’s fast-paced, knowledge-driven world. It ensures that individuals remain adaptable, competitive and prepared to embrace change and innovation in their personal and professional lives. It is particularly relevant in environments in which staying current and being open to new ideas and approaches are essential for success. In a VUCA environment, skills can quickly become outdated. Continuous learning ensures that employees remain competent and relevant in their roles, even as job requirements evolve. Continuous learning enhances an individual’s career prospects by expanding their knowledge and skills. It can lead to promotions, new opportunities and a more fulfilling career. Continuous learners future-proof themselves by staying ahead of emerging trends, technologies and industry shifts, which is vital in VUCA environments (Cantarino and de Araujo, 2022). Employees who continuously learn and adapt have a competitive advantage. They are more likely to excel in dynamic markets and seize opportunities that others may miss.

Adaptive mindset is an individual’s ability to approach challenges, change and uncertainty with flexibility, resilience and a willingness to learn and grow (Ey et al., 2021). It involves a mindset that embraces change as an opportunity for personal and professional development, rather than as a threat or obstacle. Individuals with an adaptive mindset are open to new experiences, receptive to feedback and able to adjust their perspectives and behaviours to effectively navigate evolving circumstances. An adaptive mindset is highly valuable in personal and professional life, as it enables individuals to thrive in uncertain and dynamic environments, seize new opportunities and overcome obstacles with a sense of optimism and a commitment to personal growth (McCausland, 2022). It is a key competency in an ever-changing world. VUCA environments often present challenges, setbacks and stressors. An adaptive mindset equips employees with the resilience needed to bounce back from adversity, cope with change and maintain their motivation and productivity. Employees with an adaptive mindset are highly adaptable. They can adjust to new situations, learn quickly and pivot when necessary and are thus highly capable of addressing the ever-evolving demands of a VUCA environment (Porkodi, 2022). In a VUCA environment, change is constant. Employees with an adaptive mindset not only accept change but also view it as an opportunity for growth, innovation and improvement rather than as a threat.

In a VUCA world, organisations face rapid and unpredictable changes (volatility), a lack of clarity about the future (uncertainty), increasing intricacy in operations (complexity) and incomplete or contradictory information (ambiguity). In such scenarios, employees with certain competencies sail through VUCA challenges. Using human capital theory and the framework synthesis review as a methodology, I identified 10 key competencies—categorised as cognitive, analytical, cross-cultural and personal effectiveness competencies – that are essential for an employee to effectively navigate VUCA challenges. I extended the understanding of these competencies with sample behavioural indicators for better understanding on how these competencies can be demonstrated in employees' professional careers (Table 2). I also present an overview of how employees can develop these competencies through an L&D agenda (shown in Table 3). In the VUCA context, this study draws attention to three crucial aspects of industry and the workforce: a workforce structure characterised by new behaviours, a terminology that reflects the requirements of human capital in the future and a classification system for the competencies required to navigate VUCA challenges. Given the disruptive nature of VUCA across various dimensions and levels (such as business models, manufacturing processes and the economy), the capabilities of the workforce must be equally enhanced in different aspects, such as technical, psychological and social domains (Millar et al., 2018). As the VUCA world is characterised by rapid changes in technology, markets and industries, the importance of acquiring new skills and adopting new approaches increases. Therefore, employees who lack adaptability and an agility mindset risk falling behind in such an environment; without the ability to swiftly pivot, they may struggle to remain relevant in their careers or industries. VUCA environments are rife with complex challenges and require innovative solutions. The 10 key competencies identified in this study are crucial for driving growth and competitive advantage. Thus, it is critical for both the employee and the employer to develop these competencies in order to remain relevant in the VUCA world. Consequently, I advocate for the development of a comprehensive set of employee competencies tailored for the VUCA era.

VUCA competencies foster adaptability, resilience and a commitment to continuous learning, thus contributing to a positive learning attitude. Individuals with these competencies are more likely to embrace change, remain motivated despite difficulties and approach learning as an ongoing journey of growth. These competencies promote collaboration by making individuals more proactive and effective learners. Additionally, VUCA competencies boost self-confidence in learning by promoting cognitive flexibility, agility and a positive approach to change. Overall, these competencies help individuals become more adaptable, resilient and proactive learners with a growth mindset and a strong belief in their capacity to learn effectively in complex and unpredictable environments.

Individual employees should assess their current proficiency in VUCA competencies by identifying their strengths and areas for improvement in this context. They need to believe that they can develop and achieve improvement in these competencies over time; however, the learning must be continuous and focussed (Nowacka and Rzemieniak, 2021; Rowold and Kauffeld, 2008). Continuing Professional Development programmes may be helpful for pursuing relevant degrees or certifications to deepen knowledge and skills in specific areas. Classroom training provides a structured environment in which employees can gain foundational knowledge and skills on emerging competencies such as cognitive flexibility and cross-cultural intelligence. Experiencing and addressing complex challenges at work is a natural way to build such competencies in a real setting and obtain related on-the-job experience. Employees need to seek out opportunities within their organisation to work on projects that require complex problem solving or adaptability (Moura et al., 2023). They need to connect with colleagues, mentors and experts from different backgrounds to ensure continuous learning in informal ways. Informal learning encourages employees to stay updated, explore new ideas and adapt to evolving information and technologies.

The development of VUCA competencies in employees is crucial for organisations to excel in dynamic environments. Organisations could incorporate these competencies into their L&D agenda (Edeb et al., 2021). The L&D professional should first assess employees' current competencies and identify areas for improvement with regard to VUCA challenges by customising the learning path; a mix of formal training, self-directed learning and experiential opportunities can be offered for skill enhancement. Organisations should enable active learning by creating opportunities for employees to gain first-hand experience in VUCA situations through simulations, scenario-based exercises and immersive learning experiences. Organisations could provide employees the opportunity to work on cross-functional projects that promote collaboration, expose them to different aspects of the business and require problem solving and adaptability. The establishment of peer coaching and peer learning communities or networks within the organisation will enable employees to share insights and best practices related to VUCA competencies, thereby fostering knowledge exchange. Going beyond the L&D function, organisations could use formal processes such as performance reviews and 360-degree feedback to assess the employee’s capability with regard to these competencies. Forward-looking organisations could hold innovation labs and hackathons for employees to work on creative projects and disruptive ideas and could reward innovative solutions for real business challenges. At the leadership level, organisations should ensure that their leadership demonstrates commitment to VUCA competencies and serves as a role model by participating in development programmes alongside their organisation’s teams (Elkington, 2018; Sarkar, 2016).

Modern L&D tools encompassing a wide range of technologies and platforms have revolutionised education and training. Virtual reality (VR) and augmented reality (AR) can be used to build competencies that are difficult to acquire in the classroom and on the job; these technologies enhance engagement through immersive experiences. VR and AR can replicate high-stress or complex scenarios in a controlled setting, enabling learners to experience and navigate VUCA situations without real-world consequences. The technologies facilitate collaboration amongst learners, regardless of physical location and can be used to provide tailored learning experiences. VR and AR can provide instantaneous feedback, enabling learners to adjust their approaches in real time. Such constant evaluation helps learners develop agility and the ability to pivot strategies in uncertain situations. Video-based learning, gamification and micro-learning promote learner interaction and retention. AI and machine learning can be used to personalise the content on VUCA capabilities for each competency. Learning chatbots and virtual assistants provide instant support to learners, thus enabling continuous learning. Social platforms and collaboration tools facilitate knowledge sharing and analytics- and data-driven insights can be used to optimise training strategies. By incorporating these tools and technologies in the VUCA context, the L&D function in organisations could demonstrate their commitment to preparing employees for the challenges of a VUCA world and building a workforce that is agile, resilient, innovative and capable of thriving in complex and uncertain environments. When designing L&D interventions, L&D professionals should customise interventions for the unique needs and challenges of their organisations and employees. One-size-fits-all training programmes may not be effective for developing VUCA competencies. In the digital age, employees may suffer from information overload; therefore, interventions that provide focussed, manageable learning experiences would create value for the employees.

Research on the topic of developing VUCA competencies in employees is dynamic and continually evolving (Ungureanu et al., 2018). Whilst this study has discussed an L&D agenda on VUCA competencies for employees, future research could explore connections between VUCA competencies and neuroscience, leadership development, mental health and well-being, agile learning and organisational performance. Future studies could focus on three areas for the development of human capital in the VUCA era: the employee, L&D and the organisation.

In the context of the employee, practitioners could focus on developing more precise and reliable measures for assessing VUCA competencies in employees. The influence of VUCA competencies on employee job performance, well-being, mental health and stress levels (Holley et al., 2022; Luthans and Broad, 2022) could be explored. Does a strong set of VUCA competencies lead to improved resilience and reduced burnout? Future studies could also examine the relationship between an employee’s VUCA competencies and their career progression, job satisfaction and overall success. From the cross-cultural perspective (Rath et al., 2021), studies could explore how VUCA competencies manifest in different cultural and regional contexts. Researchers could investigate whether certain competencies are more critical in specific locations or industries. Another potential area of study is the examination of how different generations (e.g. Gen Z, Millennials, Baby Boomers) develop and apply VUCA competencies and whether generational differences (Kornelsen, 2019) impact organisational dynamics. From the leadership perspective, studies could investigate the influence of leaders with strong VUCA competencies on their teams and organisations and the relationship between leadership development in VUCA skills and organisational performance (Khan et al., 2021).

In the context of L&D, studies could analyse the cognitive mechanisms involved in VUCA competency development and how the brain adapts to VUCA environments. Studies on VUCA competencies could investigate the most effective training and development methods for enhancing the competencies. Researchers could examine the effects of using experiential learning, gamification and immersive training environments. Another potential area of future research is the study of the role of technology, such as VR, AI and data analytics (Lee and Moon, 2022; Manimuthu et al., 2021), in the delivery of personalised and adaptive training programmes for VUCA competencies. The findings of these studies could help in designing suitable curriculum for schools, universities and corporate training programmes with the goal of ensuring that VUCA competencies are effectively integrated into educational and professional development pathways.

In the context of the organisation, future studies could explore the relationship between employees' VUCA competencies and organisational performance indicators, such as innovation and productivity and between employees' VUCA competencies and an organisation's competitive advantage in rapidly changing markets (Bourne, 2021). Researchers could examine the return on investment for organisations that invest in VUCA competency development for their employees. With reference to developing these competency frameworks within an organisation, researchers could explore and identify the most effective strategies and interventions for developing these competencies in employees and comprehensive frameworks or modes for cultivating VUCA competencies within organisations. Studies could examine how VUCA competencies vary across different cultural contexts, how multinational companies (MNCs) could promote the competencies in a global workforce and whether there are culture-specific approaches to developing the competencies. The findings of these studies could provide valuable insights into the development, impact and practical applications of VUCA competencies at the organisational level, ultimately helping organisations and individuals thrive in an ever-changing world.

In summary, the findings of this study underscore the significance of specific employee competencies required for navigating VUCA challenges and the development of these competencies in employees with a focus on an L&D agenda. Using the framework synthesis as a methodological approach, I developed a competency framework that is specifically tailored to the VUCA environment. These competencies are cognitive competencies (cognitive flexibility, agility mindset and personal ambidexterity), cross-cultural competencies (cross-cultural intelligence and cross-cultural collaboration), analytical competencies (creativity and complex problem solving) and personal effectiveness competencies (personal resilience, continuous learning and an adaptive mindset). In light of ongoing discussions on ways in which employees can adapt to the VUCA landscape and the associated HR challenges, this study provides valuable insights for industry professionals, academics and policymakers to develop the required human capital in all spheres of society. Furthermore, I propose an L&D agenda for developing these competencies amongst employees to enable them to effectively adapt to the VUCA world and to create the human capital required in the VUCA context.

The author is grateful for the anonymous reviewers' feedback that improved this article. The author thanks Mr. Manoj Deshpande, Head of L&D at Sonata Software for the insights on practical implications of this article.