Building a Better Future: A Case for Reskilling and Upskilling

Industries across the globe experienced a massive shift in infrastructure in response to challenges created by the pandemic. Businesses were forced to rapidly move to a remote work setting, adopt new technologies, and, in some cases, fundamentally change their entire operations. This shift not only widened the skills gap but also further exposed the talent shortage in tech. 

To cope with these challenges, companies, and individuals have turned to two training methods: reskilling and upskilling. While upskilling focuses on updating skills of an evolving and continual job, reskilling relates to a pivot in performance needs and often occurs when a previous job no longer exists.

As a long-time champion of these initiatives, we know the need for new skills hasn’t changed, it’s just sped up. With the acceleration of digital transformation in many organizations, recent research from Randstad tells us that 40 percent of workers are struggling to learn new skills in this advanced digital age. Supporting workers in this evolving labor market is crucial.

To prevent workers from being left behind, businesses and governments must collaborate to provide workers with the skills they need to succeed in the post-pandemic landscape. Here are three reasons why you should make reskilling and upskilling a priority:

BUILD RESILIENCE & BOOST PROFIT

To create a sustainable, resilient future for businesses and industries alike, investing in reskilling and upskilling initiatives is imperative. There is a strong economic case for developing current employees, and as the authors of the influential business book, Talent Wins, notated, “You must manage human capital as wisely as financial capital.” This concept is simple: when a business requires new or advanced skills and does not provide an effective way for current or potential employees to receive the necessary training, the employees lose their competitive edge and the business loses money. Whether these initiatives occur on a micro or macro scale, it is a business’s responsibility to develop programs that provide continuous learning and training.

In the past year, we have seen several companies who have risen to the challenge and prioritized retraining programs focussed on tech and data skill development for current employees. Amazon, which has invested over $700 million into reskilling and upskilling programs, has taken great initiative and introduced three programs geared towards data and technical development. JPMorgan Chase also introduced a program called New Skills at Work, aimed to reskill members of its workforce who have been historically held back and also identify emerging skill sets that workers from all backgrounds will need to be competitive in the future.

BOOST PRODUCTIVITY

Hubstaff reports an increase in productivity for 65% of remote workers and an overall increase in productivity for 85% of businesses after the move to remote work. However, if the consistent development of new skills is not supported or encouraged by companies, those productivity gains could quickly disappear. When employees have greater capabilities to take on tasks, they are able to get things done efficiently and effectively.

Employees are experiencing unprecedented amounts of stress and strain on their mental health which can directly affect productivity and quality of work. Instead of leaving the burden on the individual, it is imperative for organizations to take responsibility and develop programs to alleviate challenges to support their team members during these difficult times.

IMPROVE TALENT RETENTION & EMPLOYEE ENGAGEMENT

There is no doubt about it: Workers who feel valued are more committed to performing well. Employees want to build skills that they can utilize at every level of their practices in work. When you take the time to invest in the continued development and learning of your employees, you can expect to see improved engagement and, consequently, retention. Not only will this boost motivation and morale, but it will also build a positive company culture and overall reputation, which will then help your organization draw in top talent in the future.

A WINNING STRATEGY FOR 2021 AND BEYOND

Invest in your people. Unlock their potential. Though the road ahead will be filled with challenges, this is not a hopeless endeavor. In times of crisis, we have the opportunity to respond with purpose and strength and create lasting changes for generations to come.