Posted: May 29, 2023

As technologies and business models continue to evolve at a rapid pace, companies are experiencing a step change in the workforce skills they need to thrive and grow. According to a recent McKinsey Global Survey on future workforce needs, nearly nine in ten executives and managers say their organisations either face skill gaps already or expect gaps to develop within the next five years .

 

To address these talent shortages, many companies are turning to reskilling and upskilling programmes rather than relying solely on recruitment. In fact, more than one-third of respondents say their organisations either have reskilled at least one group or have a pilot or a programme to do so currently under way .

Reskilling

Involves training employees to learn new skills or competencies so they can take on new roles within the company. This can be particularly useful when a company is expanding into new areas or when there is a need for employees with specific skills that are in short supply. To implement an effective reskilling programme, companies can take the following actions:

  • Identify the skills and competencies that are in short supply within the company and the industry.
  • Develop training programs to teach these skills to current employees.
  • Provide support and resources to help employees transition into new roles within the company.

Upskilling

Involves providing additional training to employees to enhance their existing skills and competencies. This can help employees stay up-to-date with the latest technologies and innovations, making them more valuable to the company. To implement an effective upskilling programme, companies can take the following actions:

  • Identify the skills and competencies that are most valuable to the company and the industry.
  • Develop training programs to enhance these skills in current employees.
  • Provide ongoing training and development opportunities to help employees stay up-to-date with the latest technologies and innovations.

 

By investing in reskilling and upskilling programmes, companies can not only address talent shortages but also improve employee engagement and retention. Employees who receive additional training and development opportunities are more likely to feel valued by their employer and are more likely to stay with the company.

 

Some examples of companies that have effectively adopted reskilling and upskilling strategies include:

  • IBM has developed an AI-driven platform called “Your Learning” that provides personalized learning recommendations to employees based on their current role, skills, and career aspirations. The platform also allows employees to earn digital badges for completing training courses, which they can display on their internal profiles or external social media accounts.
  • PwC has invested $3 billion to upskill 275,000 employees . PwC’s “New World, New Skills” program provides employees with access to digital upskilling tools and resources, including virtual reality training courses and mobile learning apps. An app developed for the programme assesses employees’ knowledge and provides personalized learning recommendations.

 

These companies have recognised the importance of investing in their employees’ development to address talent shortages and improve employee engagement and retention. By implementing effective reskilling and upskilling programmes, they are able to fill critical skills gaps and stay competitive in today’s fast-paced business environment.

 

Reskilling and upskilling current employees for different roles is an effective way for companies to address talent shortages. By investing in their employees’ development, companies can not only fill critical skills gaps but also improve employee engagement and retention.

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