Aristotle once said “ Excellence is an art won by training and habituation .” He couldn’t have been more correct . In today’s time employee upskilling and reskilling have become an integral part of a company’s long term investment and growth strategy.
According to the World Economic Forum, by 2022, almost half of the global workforce will need to either expand or replace their current skills.
As the pace of technology advancement accelerates, the era of upskilling and reskilling is upon us. To be able to stay relevant and successful in the future , companies need to strengthen their strength and the biggest strength of any company is the people it is made up of.
How will employee upskilling and reskilling help the company ?
According to a research conducted by Workable and Training Journal, 91% of companies and 81% of employees say upskilling/reskilling training has boosted productivity at work.
Digital transformation of the business world is rapidly changing the skills needed. As a result many HR leaders see a significant skill gap arising in their workforce. According to Gartner, 64% of managers don’t think their employees are able to keep pace with future skill needs. Furthermore, 70% of employees say they haven’t even mastered the skills they need for their jobs today. To bridge this gap and be future ready, the best solution for any business is to focus upon the learning and development of their employees. Employee upskilling, reskilling and internal knowledge sharing in a company help –
- Increase profit margins –
Rapt Media says more than $500 billion is lost every year due to employee disengagement. Engaging and investing with employees through upskilling – reskilling training, helps increase their engagement and lowers the potential risks for losing money. According to the Huffington Post 24% higher profit margins can be the result of companies who invest in training. According to the Association for Talent Development (ATD), companies that offer comprehensive training programs have 218% higher income per employee than companies without formalized training.
- Increase Efficiency–
In a study conducted by the National Center on the Educational Quality of the Workforce (EQW), increases in workforce education level were far more effective at increasing productivity than increases in the value of equipment (a 10% increase in both produced a productivity gain of 8.6% for education vs. a mere 3.4% increase for upgraded equipment).
- Make it future ready–
According to the World Economic Forum (future of jobs report) by 2022, no less than 54% of all employees will require significant re- and upskilling. Of these, about 35% are expected to require additional training of up to six months, 9% will require reskilling lasting six to 12 months, while 10% will require additional skills training of more than a year.
- Ensure employee retention and growth-
According to Go2HR a full 40% of employees who don’t receive the necessary job training to become effective will leave their positions within the first year.
Also, a long-term research project commissioned by Middlesex University for Work Based Learning found that from a 4,300 workers sample, 74% felt that they weren’t achieving their full potential at work due to lack of development opportunities.
- Eliminate skill gaps–
In late 2019, the World Economic Forum issued an alert. Lack of skills was keeping CEOs awake at night. The only way to bridge the skills gap is through upskilling or reskilling programs. If critical skills gaps aren’t closed in the coming years, then their organizations will be negatively impacted in a variety of ways-from future growth to how they interact with customers. Only 1% of L&D pros said that if skills gaps aren’t closed, then there would be no negative impact.
In the business world, the saying “An investment in knowledge pays the best interest” is indeed true . By promoting continued learning and development as part of its company culture, a business can boost employee job satisfaction, remain competitive and increase its bottom line by bringing out the full potential of an existing workforce.
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