Reskilling and upskilling: A strategic response to continuously changing skill demands

Rapid digitization is forcing companies to take a long, hard look at the skills of their employees and invest heavily in reskilling them to maintain their position in the market. In its recent ‘Talent Trends’ report, PwC clearly outlined that “Developing a workforce with the digital and transferable skills you need — and the ability to adapt quickly in a world of constant change —does not happen organically or by accident.”

As an employer, the onus is on you to make employees partner in the upskilling and reskilling process, and get the most out of the investment you make in hiring the right talent. McKinsey has a warning for businesses, as they believe that 14% of the workforce worldwide will be forced to change jobs with the rise of artificial intelligence, automation, and other technological advancements in the coming years. The economies are already changing in response to digital innovation and the workforce has to adapt quickly in response. To remain a winner against such market forces, you have to invest in employee skill expansion.

Job requirements are changing at a faster pace

This rapid pace of change in job descriptions points towards the growing demand for upskilling. The importance of reskilling is highlighted in a new report on workforce upskilling by the World Economic Forum. The survey states that one in four adults reported a need for reskilling or upskilling to match the skills they need for their current job. Many legacy businesses fail to understand the fact that skill requirements are transforming at an unprecedented rate.

A Gartner report evaluating the skill requirement change pace showed that 33% of the skills listed in a typical job description in 2017 are no longer a requirement in 2021.

That’s a depletion of one-third of the skills within four years!

And, it’s not just for any specific position or role.

The same Gartner report highlighted that today, employers ask for 10% more skills than in previous years. Due to higher expectations and now-redundant skills, employers are looking for candidates with vastly different skill sets. This makes reskilling workforces more valuable.

The talent and skills gap is growing wider by the day

Another consequence of Covid was that it forced a large workforce to learn skills on the fly. Companies met this challenge with a varying degree of success, highlighting the need for an effective and efficient reskilling program at the workplace. As the adoption of technologies like blockchain and artificial intelligence continues to grow, equipping your workforce with the required skills to take up new responsibilities is a decision favorable to business growth. This is also mandatory to maintain the core competencies of a business.

Covid has accelerated the shift towards a global workforce. Most companies are shifting entirely or parts of their business online that require their employees to have different skill sets. According to McKinsey, 87% of CEOs report noticing skill gaps in their employees when the services are moved online. If this mismatch between skills and requirements is too large, companies have to think about reskilling the workers to better meet the requirements of the roles.

The good news is that many companies are already making it their top priority. As per an L&D study, 59% of the professionals’ rate upskilling and reskilling employees as the priority of their business goal for the coming year. As building new skills in employees is much more efficient than hiring a new workforce, it also positively impacts the employee-employer relationship.

Reskilling the workforce is a collaborative effort

Today, employees wield more power as the labor market has tightened laws. As an employer, it is your responsibility to make them feel that they have major control over their professional development. It doesn’t mean that you make them entirely responsible for reskilling efforts, but rather involve them in the upskilling and reskilling process so they do not feel like just a cog in a machine.

Start by explaining the tangible advantages of reskilling training to the employees. Let them know how their role requirements continue to change, and how reskilling is in their best interest. Also emphasize that employees will have a say in how their training will progress.

Reskilling can also boost employee retention as shown by an IBM research. According to the study, employees are 42% more likely to remain at the same company if they receive training that helped them perform their role at a higher level.

Make upskilling and reskilling your employees a priority for 2022 and beyond. It will play a pivotal role in ensuring your business growth and maintaining competency.

Talent500 can help bridge the skill gap and hire pre-vetted and location-independent professionals. To know more, request a consultation online.