The Need for Upskilling and Reskilling
In today’s fast-paced business world, staying competitive means keeping up with the rapid changes in technology and industry demands. Companies must take a proactive approach to address the growing skills gap and enhance employee development. A Deloitte study found that a whopping 68% of workers are ready to retrain under any circumstances, and 28% will do so “if necessary.”
Upskilling and reskilling are vital strategies. While upskilling enhances existing skills, reskilling provides employees with entirely new abilities. Both approaches are essential to maintaining a competitive edge, fostering innovation, and ensuring sustainable growth.
The Big Stay: Emphasizing Training
The COVID-19 pandemic brought about the Great Resignation, where many employees left their jobs in pursuit of better opportunities and higher salaries. However, as economic instability persists, workers are now prioritizing job stability and meaningful employment over frequent job changes. This shift has led to the “Big Stay,” where employees are more inclined to remain with their current employers. The pandemic’s Great Resignation has slowed, and the uncertain economic outlook has made the risks of changing jobs too high for many workers. Many organizations have adjusted their work environments to retain employees, ensuring they became healthier, more positive places to work. Companies strive to create people-first cultures, partly as a result of the cost of staff turnover, and the ensuing better places to work seem to be a significant factor contributing to the Big Stay.
Leveraging Interim Workers
Interim workers are becoming a crucial solution to the skills shortage in HR and finance. According to Wade Macdonald’s research, 39% of interims are hired to fill gaps in short-term skills, and 82% are focused on delivering results. Interim workers bring high-level skills to meet immediate organizational needs, supporting business changes and strengthening project teams.
Bridging the Skills Gap
The skills gap continues to widen as automation and AI reshape industries. Employers and employees often have different priorities when it comes to skill development. While employees seek business and financial skills, employers value critical thinking, creativity, and communication. Bridging this gap requires collaboration and a mutual understanding of the benefits of upskilling and reskilling. Employers must offer training opportunities that align with both organizational goals and employees’ personal responsibilities.
Demand for Continuous Learning
A recent survey by TalentLMS and Workable reveals a strong demand for continuous learning among U.S. employees. About 71% of employees want to update their skills more regularly, and 80% desire more investment in upskilling and reskilling from their employers. The primary motivator across all age groups is personal growth, followed by meeting job requirements and staying up to date with industry changes. Interestingly, 37% of employees worry about their current skills becoming obsolete, and 64% find upskilling and reskilling have supported job security.
Future-Proofing the Workforce
Addressing the labor shortage through the Big Stay and strategic reskilling is crucial for HR professionals. By focusing on employee development, leveraging interim workers, and investing in learning and development, companies can bridge the skills gap and ensure long-term success. This holistic approach not only meets immediate needs but also prepares the workforce for future challenges, driving organizational growth and resilience.
