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The use of technology has transformed the workforce since the Industrial Revolution. Over the last couple of years the adoption of new technology has increased exponentially, causing permanent ripples in all industries. In order to stay competitive in this digital age, it's important that businesses embrace these changes.
World Economic Forum predicts that by 2025, more than half of employees will have to upgrade their skills due to job changes. This statistic will become a reality in the workplace by 2025, as it is just around that corner.
This article will discuss five reasons for investing in workforce upskilling today.
1. This helps to fill the skills gap
Skills shortages are a result of a shortage of talent in most industries. The skills gap is what we call it, and has been growing over the years. This growing divide is a result of new and disruptive technologies.
A recent McKinsey study found that 87% of companies either have a skills gap or expect to develop one in the coming years. As employers are under increasing pressure to have a workforce that is more prepared for the job market, it will be incumbent on current and future workers to adapt and keep up with this rapidly changing digital environment or they risk not being qualified for many of the jobs available.
One of the best ways to close the gap is by workforce upskilling. By offering further education and training, you can help your employees develop the skills they need to improve their futures and that of your company.
2. It supports employee retention
Hiring external candidates is the best short-term fix to improve the skills gap. However, organizations are faced with a larger and costlier problem: retaining their talent.
Gallup's 2019 study revealed that replacing one employee costs between 1.5-2x their annual salary. This is a conservative estimate. CNBC reported in August that voluntary job resignations were higher than usual, and there were nearly two job openings per unemployed worker. This has made it more difficult to find and retain good talent.
In today's highly competitive job market, it is important to offer employees growth and development opportunities. workforce Upskilling can help organizations save money on replacement and turnover costs, while also developing their skills internally. What's the best part? You can offer upskilling services for almost nothing.
3. This helps to increase productivity
Productivity is the key to profitability. Give employees development opportunities to keep them engaged and productive.
Since a long time, we've been aware that disengagement is linked to productivity issues. A 2013 Gallup study found that a disengaged employee could cost their organization up to 34% of the annual salary. A disengaged employee who earns $60,000 per year could cost his or her organization as much as $20,400 in productivity. The study showed that 17.2% of a company's employees are actively disengaged.
Loss of productivity can cost businesses thousands, and in some cases even millions.
In several ways, workforce upskilling can boost productivity and increase profits. By investing in new technologies and skills through quality training, you can increase revenue by increasing your capabilities. In addition to re-engaging employees, investing in management and leadership roles can help increase team effectiveness and productivity over time.
4. This helps to future-proof your organization
Change is inevitable when you look at the long term. Adapting to the changing environment has always been a must for organizations. The last few years have brought into sharper focus the importance of adaptability in years to come.
A report by Dell Technologies states that 85% of jobs in 2030 are not even invented yet. It's difficult to predict what skills are needed for the new jobs that will emerge with the advent of new technologies and automation. How can your organization prepare for these new roles?
A culture of continuous education is one way to ensure that employees are prepared to adapt to the new world. workforce Upskilling is not an expense for companies, but an investment in the future of their company. This will help to prepare employees for future demands and protect them from uncertainty.
5. This is what employees want
workforce Upskilling has enormous benefits for organizations but also employees who actively seek it out. LinkedIn conducted a recent survey that found 94% of employees would stay at a company longer if they invested in their future. It is important to keep employees loyal by focusing on what they value.
In the same study, it was found that opportunities to grow and learn are what defines an exceptional workplace. Employees will feel valued and less likely to leave an organization if you invest in training, development, and other opportunities for upskilling. Workforce Upskilling can help you create the learning culture that your company requires to empower them to grow in your organization.
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