More than half – 56 percent – of organizations believe they have a moderate to severe skills gap today, and 60 percent of employees believe that, to some extent, their current skill set will become outdated in the next three to five years. A commitment to Upskilling and Reskilling employees is quickly becoming the best path to overcoming skills gaps.
What is Upskilling and Reskilling?
Upskilling is learning new skills to optimize performance. Organizations upskill their employees to help them gain new skills and experience to stay relevant or move into a higher position. Whereas reskilling helps employees learn new skills to take up a new role within the same organization. Reskilling is more focused on training employees for a new position.
Benefits of Upskilling or Reskilling
Stay Competitive and Improve Employee Retention
Employees want learning and development opportunities to help them stay relevant in their role as well as position them for advancement. Providing a pathway for skills development motivates employees. Making them feel valued and supported, increasing their likelihood to stay with your organization long term. Upskilling and reskilling team members also helps keep companies competitive and shows that they are motivated to invest in the professional development of their employees.
Improve Morale and Productivity
Training and development opportunities help employees move forward on their career path and helps them envision their future with the organization, improving morale. Across teams, efficiency and productivity is improved, paving the way for increased satisfaction and strengthening your company’s competitive edge.
Attracts Great Talent
As word of your commitment to upskilling and reskilling spreads, your reputation in the eyes of your employees and the wider talent market improves. 91% of the millennials indicated that they preferred career development to any other benefit when choosing to join a company. By offering the right mix of upskill and reskill opportunities, employees who are motivated to keep learning and growing are motivated to stay and great talent with a similar mindset is encouraged to join.
Reduces Hiring Costs
Hiring is costly, from one-half to two times the employee’s annual salary. A measurable advantage of upskilling and reskilling is that it reduces hiring efforts to search for a specialist in a field. It is a much smaller investment compared to the cost of the recruitment process for hiring a new employee.
Upskilling and reskilling can help your company secure the right people with the right skills that you need to compete today while providing flexibility to arm team members with the necessary skills needed in the future. This attention reduces the need to look outside for talent with specific skillsets, saving time and hiring costs and allows for continuity among team members when it comes to proprietary company knowledge that would have otherwise walked right out the door.
How to Upskill and Reskill Employees?
Remote learning is the most popular way to upskill and reskill during the current times when most employees are working from home. Online courses can be free or paid, and most of them provide a certificate at the end of the course. Investing in online classes allows you to upskill employees regardless of their location and time zone.
Organizations can also upskill employees in a traditional classroom setting. They can hire trainers or institutes to share ideas and teach new skills and software to their employees. However, with the project deadlines, work commitments, and remote working, it becomes less feasible to attend scheduled training on the allocated day, time, and location.
Mentorship programs within the organization are another great way to upskill employees. Subject matter experts (SMEs) from different areas can pair with employees to share new skills. This helps companies to leverage their existing talent to meet future requirements. Mentorship programs come in various forms and can be customized based on the upskilling or reskilling needs.
Pioneer companies are aware of the changing technological demands of the workplace. Last year, Amazon announced it would be dedicating $700 million to provide 100,000 employees access to upskilling training programs. In comparison, salesforce pledged to train 500,000 Americans with the skills they need to earn Salesforce credentials. Analyzing what skills are missing across the organization and upskilling or reskilling employees based on those skills will help create a growth-focused culture and continuous learning.