Reskilling and Upskilling: Preparing Your Workforce for the Future

In recent years, there has been a growing emphasis on employee upskilling and reskilling. In 2024, Gartner identified skills management as one of the most essential HR technologies. So, what exactly are reskilling and upskilling?

While often used interchangeably, upskilling and reskilling are two distinct terms. Upskilling refers to any process aiding employees in determining the additional skills required for advancing in their current career. It focuses on workforce development, accelerating employees' progress along traditional, linear career paths. On the other hand, reskilling targets employees who are considering a shift in their career trajectory. It equips them to answer the question, "What skills do I need to transition from one department to another?" This empowers employees interested in changing lanes within their professional journey.

In the last decade, the requirement for upskilling and reskilling has become more evident. A 2021 World Economic Forum study projects that over 50% of the global workforce will require reskilling or upskilling by 2025. Here are several ways in which reskilling and upskilling initiatives can prepare businesses for the challenges of the future:

Overcoming the Talent Gap

In various industries, the labour crisis is still a huge problem. About 83% of HR professionals struggle to fill crucial job openings with qualified candidates. HR managers should implement comprehensive training and development programmes to upskill and reskill employees in alignment with the organisation's vision. Furthermore, the HR team should provide constructive feedback and coaching sessions to employees to help them understand their roles in achieving the organisation's goals.

Communicating the Organisation’s Vision

The evolving nature of work demands prioritising employees. This shift benefits both workers and employers, leading to skill development, increased workforce adaptability, and lower turnover rates. HR managers should ensure that the organisation's vision is clearly articulated and easily accessible to all employees through various communication channels. Additionally, HR team can organise regular town hall meetings or virtual sessions where senior leaders share insights into the vision.

Creating a Viable Talent Pool

Technological advancements may replace certain jobs, requiring ongoing workforce development for job security. Organisations must safeguard their workforce's future by encouraging continuous learning. HR should assess the organisation's current skill gaps and future needs to identify areas where upskilling or reskilling is necessary due to technological advancements. This assessment can be conducted through employee surveys, skills assessments, and consultations with department heads.

Addressing Talent Shortage Challenges

A LinkedIn survey reveals that 61% of top business leaders find it challenging to attract top talent. HR team should collaborate with hiring managers and department heads to develop clear career paths for employees within the organisation. This involves identifying key competencies, milestones, and advancement opportunities for various roles and positions. Additionally, the HR team can design and implement skill development programmes that align with these career paths.

Boosting Employee Retention

Structured career paths empower employees to envision their future within the organisation. A recent survey claims that employees undergoing internal moves have a 75% likelihood of staying in the company for at least two years. HR team can facilitate internal mobility programmes that allow employees to explore different roles and departments within the company. Providing opportunities for internal transfers and promotions not only fosters career growth but also increases job satisfaction and engagement.

Enhancing Business Performance

Structured career paths increase employees' motivation, impacting critical business metrics. Motivated employees are more productive, thereby leading to higher profitability. Investing in employee development programmes and training initiatives helps build a skilled and competent workforce. Highly engaged teams result in lower absenteeism, reduced turnover rates, and improved customer loyalty, ultimately contributing to higher profitability and surpassing financial objectives for growth-oriented companies.

Continuous Development for a Future-Proof Workforce

In the era of the Fourth Industrial Revolution, AI and automation are reshaping the business world. The World Economic Forum predicts that by 2025, half of all employees will need reskilling. The HR team can encourage a culture of continuous learning within the organisation by providing access to online courses, webinars, and educational resources. The HR coordinators can also facilitate knowledge-sharing sessions, mentorship programmes, and cross-functional collaborations to foster a learning environment where employees can acquire new skills and knowledge from their peers.

Way Forward

In 2024, the emphasis on employee upskilling and reskilling will reach new heights. Distinct in meaning, upskilling accelerates career paths, while reskilling empowers transitions. With over 50% of the global workforce projected to require these enhancements by 2025, businesses embracing these initiatives tackle talent gaps, foster communication, and create adaptable talent pools. Addressing talent shortage challenges, boosting retention, enhancing business performance, and preparing for the Fourth Industrial Revolution, upskilling and reskilling prove indispensable for organisations. These initiatives will pave the way for organisations to sustain success in an ever-evolving landscape.