From the COVID-19 pandemic to the Great Resignation, the job market has undergone a major overhaul over the past few years. As organisations grapple with a record number of employees quitting as well as concerning economic undercurrents from the aftermath of the pandemic, the need to invest more heavily in upskilling the existing workforce emerges as a top priority for organisations globally.
Upskilling employees will be crucial to the future of work – not only for employers who will have to train workers in new and different approaches and technologies, but also for workers who are eager to learn, adapt, and continue playing a valuable role. Yet, a global 2022 PwC survey which draws from more than 52,000 workers spanning 44 countries and territories found that only 40% of surveyed employees said their company is investing in upskilling.
Many industries today are experiencing a significant shift in the skills requirements for their workforce, resulting in increased skill gaps and a greater demand for talent. Organisations can only remain competitive if their employees have the skills to thrive and succeed at work in an ever-changing environment.
What is Upskilling?
Upskilling is the process of developing additional or new skills through education or training to meet the demands of the current market.
According to Harvard Business Review, upskilling is a “longer-term investment in augmenting the knowledge, skills, and competencies that help employees advance their careers.” Vice President of Talent Development at LinkedIn Linda Cai points to upskilling simply as “those smaller skills gaps you are always filling, like learning the Excel skills you need to manage a project’s budget more efficiently, or practicing a few tips to have better performance conversations with your direct report”. Over time, as you keep filling these smaller gaps, it would help you stay relevant and competitive in your industry and potentially position yourself for better career opportunities.
Upskilling can touch on hard skills such as learning how to code or use python and help improve soft skills such as interpersonal skills, problem-solving and both verbal and written communication. Some examples include curating in-house workshops or sending employees for short courses or e-learning training to advance their skillsets.
How Upskilling Benefits your Organisation
1. Keep ahead of the curve
Technology continues to rapidly change the way organisations operate. Equipping your employees with more advanced and relevant skills allows both your employees and organisation to be nimble in the face of industry and technological disruption. Upskilling prepares and empowers your employees with skills that allow them to pivot quickly, find new solutions and innovate. The need for speed, powered by skilled and engaged employees is why more and more organisations are incorporating upskilling as part of their competitive advantage to stay ahead of the curve. And as a result, when your employees are empowered to succeed, so will your organisation.
2. Bridge the skill gaps in your organisation
A recent survey by ManpowerGroup revealed that global talent shortages are at an all-time high, with 75% of employers struggling to fill roles. Often overlooked is the talent which already sits within your organisation. As you upskill your employees, you create a more well-rounded, cross-trained and confident workforce that is primed for future success. Furthermore, upskilling your existing team who know your company and possesses institutional knowledge would allow them to absorb training and apply their new capabilities to fill gaps in the organisation more quickly than hiring externally, as well as ensure a seamless continuance of business operations.
(Psst: in our recent blogpost, we put forth how upskilling your internal team can help to address the persistent skill gap challenge. Read more here.)
3. Boost Employee Engagement and Retention
Ensuring good employee engagement and satisfaction across your organisation is crucial to motivating employees and keep turnover rates low. In the tailwinds of the great resignation movement, one of the most revealing findings of a study by TalentLMS showed that 76% of employees said that they are more likely to stay with a company that offers continuous training. Meanwhile, a 2022 PwC survey indicated that employees deeply value nonmonetary benefits which include upskilling and career growth. When employees are offered upskilling opportunities and are encouraged to take advantage of upskilling for their personal and professional development, people metrics, such as employee engagement and retention correspondingly increase. Upskilling your workforce provides a good avenue to tackle new challenges, explore new projects, and feel more productive and satisfied at work which can also bolster motivation and morale. It allows companies to move its people up the ladder and into new roles, which can excite workers and make them feel invested in.
4. Empower employees to deliver better value
The outsized productivity gains promised by the use of technology materialises when employees are empowered with the right skills and tools to streamline processes or automate manual processes. The PwC Annual Global CEO 2020 survey found that 93% of CEOs who introduced upskilling initiatives in their organisations saw increased productivity. As organisations adopt more advanced technologies such as business automation software, upskilling your organisation to help them to leverage these technologies to automate and standard repetitive tasks, freeing up additional time that can be spent on value-add activities. Upskilling can help employees apply new skills and technologies that can help them save time, innovate, and deliver better value to customers and the organisation while advancing their careers.
Upskilling your workforce is one of the best ways to stay nimble in the future. As Richard Branson, Founder of the Virgin Group, once famously said: “take care of your employees and they will take care of your business”. Through upskilling, you will not only ensure that your employees have what it takes to succeed, but also drive employee engagement, help your organisation deliver better value and keep your business ahead of the curve. It’s a true win-win.
Here at SMU Academy, we work with industry experts to offer a comprehensive array of cutting-edge interdisciplinary programmes that help organisations align their upskilling initiatives with its strategic goals. We understand that every company is unique, as such, we also provide customised training programmes to identify and close your organisation’s skill gaps. Take the first step in transforming both your organisation and the learning experience of your employees. Connect with us to unlock your workforce potential today!
