Upskilling is proving itself as the most impactful investment in today’s market situation. It is the top priority for nearly 60% of leadership and L&D pros. Let’s find out why.
WHAT IS UPSKILLING?
Upskilling is a medium to long-term investment in augmenting knowledge, skills, and competencies to help organizations minimize skills gaps, improve productivity, and optimize emerging technologies. It also helps to improve employees' existing skills and abilities so they can advance in their current roles and careers within the organization.
WHY NOW?
A McKinsey global survey found that 9 in 10 executives and managers are either already facing skills gaps in their organizations or expect gaps to develop within the next five years.
Another study shows 50% of all employees will need reskilling in the next five years.
Upskilling has a positive impact on the business outcomes and performance of an organization. Some of the known impacts include:
- It can improve customer satisfaction and loyalty, as employees deliver better products and services that meet or exceed customer expectations.
- It can increase innovation and competitiveness, as employees generate new ideas and solutions that differentiate the organization from its rivals.
- It can boost revenue and profitability, as employees create more value and efficiency for the organization and its customers.
- It can enhance the reputation and brand image, as employees demonstrate professionalism and excellence in their work.
"...study shows 50% of all employees
will need reskilling in the next five years."
IMPACT ON ORGANIZATIONS AND EMPLOYEES
When employees are offered and encouraged to take advantage of upskilling opportunities for their personal or professional growth, people metrics, such as employee engagement and retention, also go up.
Upskilling improves morale and increases productivity; saves on recruitment costs (a Gallup report estimated the cost to replace an employee could be twice their annual salary); ensures an adaptable, flexible, agile workforce and enables employee growth, as well as personal and professional development.
Here are some statistics that show the importance of upskilling for individual employees and organizations:
Sixty percent of CEOs say a strong upskilling program positively impacts their company culture.
A workforce training program focused on soft skills delivered a 250% return on investment.
91% of companies and 81% of employees say upskilling/reskilling training has boosted productivity at work.
A study by McKinsey found that organizations with a strong learning culture are 30-50% more likely to be market leaders in their respective industries. Meanwhile, a survey by Deloitte found that employees who feel their company is invested in their development and learning are 2.8 times more likely to stay with that company.
WHAT ARE THE UPSKILLING PROGRAMS?
Some of the common upskilling programs that organizations offer their employees are:
Time Management and Productivity
Leadership Development for Young Professionals
Women in Leadership
OKR Goal Setting
Communication in Remote Teams
Keeping a Healthy Work-Life Balance
Employee Mental Health
Conflict Resolution
Diversity and Inclusion
Emotional Intelligence
Financial Management
Human Resource Management
Strategic Planning
Troubleshooting & Problem-solving Techniques
Business Ethics
Corporate Social Responsibility
Supply Chain Management
Risk Management
Quality Management
Operations Management
International Business.
Project Management
Sales and Marketing
Customer Service
Data Analysis
Train-the-Trainer
Digital Marketing
Social Media Management
Public Speaking
Negotiation Skills
Creative Thinking
Innovation and Entrepreneurship
They are delivered in different possible methods such as:
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- Webinars: These are live or recorded online presentations or workshops that provide information or instruction on specific topics or skills. They can be interactive or passive depending on the format and features. They can help employees learn from experts or peers, get insights or tips, ask questions or share feedback, etc. | - Online courses: These are self-paced learning modules that cover various topics and skills that are relevant for the current or future roles of employees. They can be accessed anytime and anywhere through digital platforms or devices. They can help employees gain new knowledge, update their skills, earn credentials or certificates, etc. | - Coaching/Mentoring: This is a personalized learning process that involves a coach (or a mentor) who guides an employee through a specific goal or challenge. The coach/mentor provides feedback, support, advice, resources, etc., to help the employee improve their performance or achieve their desired outcome |
WILL THE BENEFIT OUTWEIGH THE INVESTMENT COST?
There are several studies that show that the benefits of investing in upskilling programs outweigh the costs. For example, as companies undergo digital transformation, they often need to upskill their employees to take full advantage of the new technologies and ways of working. Investing in upskilling can lead to increased efficiency and productivity within an organization. As employees gain new skills, they can work more efficiently and effectively with the new technologies and processes. This can lead to cost savings and increased competitiveness for the organization. One soft skill training program was reported to have delivered a 250% return on investment.
In addition to the benefits for the organization, investing in upskilling can also lead to career advancement opportunities for employees. As employees gain new skills, they may be able to take on more responsibilities or move into different roles within the company. This can lead to increased job satisfaction and engagement, as well as retention of top talent.
The survey conducted by TalentLMS found that 91% of companies and 81% of employees say upskilling and reskilling training have boosted productivity at work.
ORGANIZATIONS TAKING THE STEPS
Leading companies recognize the importance of upskilling their employees and have implemented various programs and initiatives to support their learning and development. Amazon has invested $700 million in its Upskilling 2025 program, which aims to provide training opportunities for 100,000 employees across its corporate offices, tech hubs, fulfillment centers, retail stores, and transportation network. The program offers a range of courses and certifications in areas such as cloud computing, machine learning, robotics, nursing, aircraft mechanics, etc.
IBM has launched its SkillsBuild platform, which provides online learning resources for its employees and external learners who want to upskill or reskill themselves. The platform offers courses in topics such as AI, data science, cybersecurity, blockchain, etc., as well as career guidance and mentoring.
Walmart announced in 2021 that it would invest nearly $1 billion over the succeeding five years to provide its employees with free access to higher education and skills training. It has established its Live Better U program, which offers its associates access to affordable college degrees, high school diplomas, language courses, professional certificates, etc. The program also provides academic coaches, career counselors, tuition assistance, etc.
Professional services company ManpowerGroup has entered a partnership with education company Pearson and others to upskill 130,000 workers over the next five years.
Upskilling enables identifying skills gaps and weaknesses within the team and recycling their skills to enable success. It may be as simple as acquiring new technology skills.
According to a survey, close to half of companies (49%) are increasing their Learning and Development (L&D) budget in 2022, compared to 41% in 2021. Almost twice as many companies increased their L&D budget than decreased it when the COVID-19 pandemic began. The larger the business, the more likely it is to have increased its L&D budget each of the past three years.
According to a recent survey by TalentLMS, 42% of companies stepped up their upskilling and reskilling efforts after the coronavirus outbreak. 68% of companies invest in upskilling and reskilling training to handle changes within the organization and 65% to train employees on new technologies.
(An article, Unleashing Upskilling Potential: Driving Success through Learning talks about impact metrics and its role in achieving the goals in the upskilling programs, check it out here.)
IMPACT ON THE RETAIL AND BANKING AUTOMATION INDUSTRIES
A McKinsey report on the future of work in banking suggests that almost all roles in bank branches will decline over the next decade. The average branch size is projected to shrink from six full-time equivalents to four by 2030. Banks have been reskilling their workforces rapidly and at scale, taking advantage of the efficiencies available from skill adjacencies (that is, skill sets from previous roles that are complementary to those required by new roles). They are also building infrastructure to support effective upskilling and redeployment (including learning factories and job-matching platforms).
Meanwhile, the downscaling of bank branches and its replacement with banking kiosks is due to changing customer behavior and the emergence of new technologies.
In the retail automation industry, a comprehensive automation program can significantly offset margin pressure. For example, typical grocery and hypermarket retailers face 100 to 150 basis points of margin pressure, while typical specialty apparel or department stores face 350 to 500 basis points.
THE WINDOW OF OPPORTUNITIES
Meanwhile, the increased use of digital technologies may also create new opportunities for banks’ service, maintenance, and technical support providers. The impact of this situation on the managed services and technical support business will depend on how well organizations are able to adapt to these changes and take advantage of the new opportunities in the talent and skills scene.
Email SUPPORT@quip-solutions.com to receive the list of upskilling programs for your business. Consultation & assessment are FREE.
Sources: www.mckinsey.com www.resource.workable.com www.hbr.org www.cipd.co.uk www.capterra.com www.edtechmagazine.com www.linkedin.com www.elearningindustry.com www.bbc.com www.forbes.com www.talentlms.com www.weforum.org
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