Future-Proofing Career: The Power of Reskilling and Upskilling

 

What is Reskilling?

Reskilling involves acquiring new skills to perform a different job or to fit into a new role within a company. In some cases, employers may consider reskilling an employee whose skill set is no longer needed or whose position has become obsolete, but who they wish to retain. This can involve moving the employee to a new area within the company where they will require a different skill set. To perform effectively in this new role, the employee must learn the necessary new skills.

An example of reskilling in action is when a company no longer requires an office clerk, but the employee's knowledge and experience within the company are still valuable. The employee can be moved to an in-demand position once they have learned a new set of skills. The concept of reskilling is different from upskilling, which involves enhancing existing skills to improve job performance or prepare for future responsibilities (Hasa, 2021).

What is Upskilling?

To upskill means for an employee to acquire additional skills in order to enhance their current job performance. For instance, a seasoned marketing executive may need to acquire digital marketing skills to keep up with the latest changes in their industry. This form of learning is typically designed to augment an employee's existing knowledge and skills to enable them to perform their job better. In contrast, reskilling involves an employee learning new skills to transition to a different job or position. This may occur when an employer no longer requires an employee's present skillset or when an employee desires a new role within the company. 

Upskilling usually focuses on improving job performance within the same career path, whereas reskilling often involves an employee taking on a new career path. Companies can save money and resources by investing in upskilling programs for their existing employees rather than recruiting new employees. Such programs may include microlearning, mentoring, and training programs, among others (Hasa, 2021).

With ongoing changes such as the COVID-19 pandemic, global conflicts, emerging trends and the rise of AI, technology, and automation, employees and organizations are required to be adaptable. As a result, there is a constant demand for new and improved skills. To address this, companies and other organizations have turned their attention towards upskilling their workforce.

Upskilling is distinct from reskilling as it involves enhancing the skills and capabilities of current employees, enabling them to progress within their current positions and careers within the organization while minimizing skill gaps in the workplace. In contrast, reskilling focuses on training staff for different roles. Both strategies typically involve training and other learning and development programs. According to the World Economic Forum's Future of Jobs Report, due to the increasing adoption of technology and automation, half of all employees will need reskilling by 2025.

Along with technological advancements, the pandemic has caused significant shifts in work patterns, altered customer behavior, led to a global economic downturn, and resulted in job losses. As a result, current staff must adapt and improve their skills. According to a report by McKinsey & Company, numerous leaders believe that skill-building is the most effective means of closing the skills gap, rather than hiring, contracting, or redeploying employees. Since the pandemic began, they have intensified their efforts to reskill or upskill their workforce.

Benefits of Upskilling

According to Neale, P. (2022), investing in employees’ learning, development, and growth can increase their sense of value and reduce the likelihood of them leaving the company. According to McKinsey, employees often cite feeling undervalued by their organizations or managers as a reason for leaving their jobs. Additionally, employees may leave if they feel that they are not being challenged or given opportunities to learn new things. Gallup-Amazon research revealed that 48% of U.S. workers would consider changing jobs if they were offered skills training, and 65% of employees believe that employer-provided upskilling is crucial when evaluating a potential new job.

Upskilling can boost morale, increase productivity, reduce recruitment costs (Gallup estimated the cost of replacing an employee to be twice their annual salary), ensure a flexible, adaptable, and agile workforce, promote employee growth and development, and improve job satisfaction. Furthermore, upskilling can enhance the organization's reputation for supporting its employees, which can lead to a better company culture and external brand image. This, in turn, can attract and retain exceptional employees.

Benefits of Reskilling

According to Sivarajah, S. (2022), Digital disruption has led to the creation of new roles, resulting in a shortage of talent in many industries. Furthermore, due to the fear of a recession, employees are seeking career cushioning and exploring new opportunities. In this context, it is crucial for companies to retain their best talent by building trust and offering internal mobility through reskilling. This approach benefits employees by allowing them to acquire new skills for different career paths and fosters a positive and productive work environment.

The benefits of employee reskilling for companies include attracting and retaining top talent, driving employee engagement and reducing hiring costs through training, and meeting future demands to gain a competitive edge. Reskilling also ensures stability amidst disruption and provides career advancement opportunities for employees while developing a culture of continuous learning. Employees can benefit from reskilling by having a secured job that facilitates continuous growth, becoming eligible for new positions to climb the career ladder and become more valuable to the company, and developing a continuously learning culture to become more agile in adopting and pivoting as the business evolves.

References:

1. Hasa, (2021, June 30). What is the Difference Between Reskilling and Upskilling? Retrieved from https://pediaa.com/what-is-the-difference-between-reskilling-and-upskilling/, Accessed on 20th March, 2023

2. Neale, P. (2022, May 23). Leveling Up: The Benefits of Upskilling for Employees and Organizations. Forbes. Retrieved from https://www.forbes.com/sites/forbescoachescouncil/2022/05/23/leveling-up-the-benefits-of-upskilling-for-employees-and-organizations/?sh=7b0e5f3745a5, Accessed on 23rd March, 2023.

3. Sivarajah, S. (2022, February 8). Benefits of Employee Reskilling: The Win-Win for Employees and Companies. Disprz. https://disprz.com/blog/employee-reskilling/.