The Global Skill Report by Cousera stated by the middle of this decade, an estimated 85 million jobs may disappear, while another 97 million new ones will take their place.
Employee reskilling is of paramount importance for building a thriving ecosystem in an era of exponential change. The drive towards a digital future, employee demands for career advancement and the evolving nature of work are pushing companies to prioritize reskilling to ensure their success. A future-ready and agile workforce is a must to straddle these changing industry dynamics.
Employee reskilling is the process of training current employees to acquire new skills for handling a different role in the company. For instance, an in-store sales rep is reskilled to work as a customer service executive to drive e-commerce sales. Reskilling creates a win-win for both businesses and employees. Businesses can address their staffing needs, and employees get career mobility along with flexibility to grow within the company. Hence companies are becoming more growth-oriented and equipping their employees with the skill sets necessary for the changing job market.
Reskilling is crucial for businesses to stay competitive in rapidly evolving industries. The auto industry’s transition to EVs is one of the best examples highlighting the need for employee reskilling in electric mobility. This shift created new job opportunities in areas such as EV design and manufacturing. Industries everywhere are embracing reskilling to keep up with technological advancements and changing customer needs.
A study by Josh Bersin Company found that “ Companies that focus on growth are 29 times more likely to let employees “unleash their potential,” 4 times more likely to be innovation leaders, and 7.2 times more likely to be best places to work.
Most companies often get confused between reskilling and upskilling. They tend to use it interchangeably. Though they sound similar, they are two entirely different concepts.
The U.S. Chamber of Commerce’s study on labor shortage showed that in 2022, a historic 4.5 million jobs were created by employers. Additionally, Forbes conducted a survey among HR professionals and found that 83% reported difficulty in locating suitable candidates for critical job positions, with 75% stating that the majority of job applicants were lacking necessary job skills.
There is a talent shortage, with new roles reshaping the workplace due to digital transformation. Additionally, employees are considering career cushioning and looking for new opportunities due to fear of recession. In this light, it is critical for companies to win the trust and retain the best in-house talent by offering internal mobility through reskilling. This not only benefits the employees by enabling them to learn new skills for different job paths, but it also fosters a positive and productive work environment and reduces employee turnover.
Reskilling is a mutually beneficial endeavor that helps companies retain their best talents and enables employees to expand their expertise in a different area. Below are the benefits the companies and employees receive by putting in time and effort in reskilling.
Garner the attention of the millennial and Gen Z labor market who prefer to join and remain with companies that give them the flexibility to evolve and pursue their career aspirations.
Training existing employees to take up new challenges helps in gaining their loyalty. Moreover, their knowledge about the company and product makes it easier for them to assume new responsibility and helps you save costs on hiring, onboarding and training new employees.
Companies with highly engaged workforces are 21% more profitable.
Reskilling empowers employees to seamlessly move between roles to help the company innovate and gain a competitive edge for capitalizing on any opportunity that comes their way.
Companies have zero time to lose. In an increasingly winner-takes-all business environment, 95% of economic profit is earned by the top 20% of companies.
With the likelihood of parts of the world heading into recession and the anxiety of unemployment, it is crucial to have a secured and quality job that facilitates continuous growth within the company.
25% of workers said it was “very” or “fairly likely” that they would become unemployed this year.
Becoming eligible for new positions will allow; employees to climb the career ladder and become more valuable to the company. The reskilling effort will reduce employee turnover and bridge talent gaps needed for new positions.
30% of employees considered career development opportunities for learning and personal growth very important.
Employees can hone new skills constantly in a company that facilitates continuous learning. It helps them become more agile to adopt and pivot seamlessly as the business evolves
74% of employees are ready to learn new skills in order to remain employable in the future.
Unlocking the potential within the organization is the key to sustainability in the future of work. Let’s dive into the steps to build an employee reskilling program that helps leverage the current employees and resources to the fullest before having to recruit to access talent from the labor market.
Employee reskilling can help you future-proof your business by having a highly skilled workforce to meet current and future needs. All you need to do is take the right steps to reskill your employees. Below we’ve summarized the steps to help you reskill your employees:
It all boils down to the technology you use and the practices you follow for designing and implementing reskilling programs. Therefore, make sure you implement an AI-based, mobile LXP platform that’s powered with rich features to help manage all the steps above for reskilling employees. Check out cutting-edge LXP that is richly designed to address your needs.
Discover how Disprz can align learning and upskilling with your desired business outcomes.