Upskilling is far from being just a corporate buzzword. It is the need of the hour in the modern work environment. Jobs and skills are evolving due to socio-economic trends and technological innovations. In the ever-evolving job market, it is important to stay ahead of the curve. Upskilling is essential for surviving and thriving in any industry. According to the World Economic Forum’s Future of Jobs 2023 report, 6 out of 10 employees will need training before 2027. The current scenario is that only about half of such employees have access to training. Upskilling platforms are noticing a corresponding high demand for courses.
What is Upskilling?
Upskilling means improving existing skills or acquiring additional skills that build upon existing skills. It is the elevation of the current set of skills. It is not just another workplace trend; it is an investment in the future. With time and experience, every employee who remains in an industry gains deep knowledge and learns better techniques for working in that industry. Upskilling is the intentional learning process that allows employees to gain that knowledge and learn those techniques faster. By voluntarily undergoing the upskilling process, employees can take control over their career progression and move actively (and more quickly) towards their career goals.
Upskilling vs. Reskilling
The objective is the main difference between upskilling and reskilling. Upskilling is undertaken to improve performance in current roles while reskilling (also called professional recycling) is undertaken for movement to other roles. Reskilling involves learning of new skills that may have nothing to do with the current skills and job role. Upskilling is a linear progression of talent while reskilling is more of a lateral movement.
Example of upskilling: A software engineer who learns how to utilise cloud computing in innovative ways with the intention of improving the usability and applicability of apps
Example of reskilling: An accountant with computer aptitude takes up relevant courses and switches over to the role of a web developer
Both upskilling and reskilling are gaining importance. According to a survey report, around 86 percent of employees feel that upskilling and reskilling can help employees adapt to the continuous evolution of the work environment and reduce unemployment.
Importance of Upskilling
Due to the evolution of the skills in demand, the skills gap is widening, and it is concerning employers and employees alike. Companies are finding it harder to attract and retain due to the growing skills gap. Companies can help close the skills gap with initiatives for upskilling. Upskilling holds multiple benefits for employees as well as employers.
Benefits of Upskilling to Employees
- Resilience due to increased adaptability
- Improvement in earning potential
- Lucrative job opportunities and enhanced career prospects
- Personal development and boost in confidence
- Acquiring skills that are beneficial and transferable
- Job satisfaction
- Networking
Upskilling Benefits to Companies
- Improved employee work performance
- Increased satisfaction and retention of employees
- Better internal mobility
- Preparation for future challenges with a talent pipeline
- Addressing skills gaps
- Compliance and meeting regulatory requirements
- Better ROI and cost-efficiency (reduced hiring costs, increased productivity)
- Improving company culture and quality of the workforce
- Advancement toward business goals due to the cascading effect of upskilling
Barriers to Upskilling
Several factors can prove to be barriers or challenges when it comes to upskilling. Some barriers are due to companies and others are because of employees. These are some of the common barriers to upskilling:
- Resistance to change
- Financial constraints (insufficient budget)
- Time constraints
- Lack of access to relevant training resources (in the case of employees)
- Insufficient data or unsuitable metrics for tracking success
- Estimating the relevance of skills, lack of direction, not an organisational priority
Prioritisation and seeking/providing affordable learning opportunities can help overcome the barriers to upskilling.
Developing an Effective Upskilling Strategy
To develop a successful upskilling strategy for their employees, companies need to conduct thorough research and figure out (with reasonable accuracy) the skills that will be relevant and required in the future in their industry. When a company has thoroughly analysed the present conditions and possible future scenarios in its external environment, it needs to pay attention to the internal situation.
The HR department should conduct a skills gap analysis. The results will show which skills need improvement, and the company can assist in the development and enhancement of those skills. Companies need to integrate upskilling with employee development programs. Upskilling should help learn skills that will, in the present and future, meet the development needs of the employees and provide support to the objectives of the company. The training method should be suitable for the specific learning style of the employee. Some employees may learn better through short online courses such as this power bi course online, while others may pick up or hone skills faster through on-the-job training methods.
Since technological innovation is the root cause of the rapid change in required skills and jobs, it is only right that companies harness the power of technology to deliver phenomenal upskilling programs. Employers can utilise training software such as a corporate learning management system (LMS) or digital adoption platform (DAP) for upskilling their workforce.
The upskilling strategy should be updated from time to time, after taking into account the success and failure of programs. With the help of employee training software, companies can monitor KPIs and determine the effectiveness of upskilling programs.
Conclusion
Upskilling will help bolster not only the confidence and job security of employees but also the future of the company in many ways. Every company must invest in its most valuable resource, its biggest asset, that is its workforce.Individuals also need to invest wisely in their own professional development.
Written by Acuity Training, an award-winning training business offering in-person and online courses.
