Every organization today uses professional staffing services to develop its workforce. Upskilling and reskilling employees have been the key pillars of success in the business sector. In the year 2020, there was a shift in the workforce concerning demand and interest because of the pandemic. The need to use several technological advancements has also forced business leaders to strategize ways to improve workforce quality. One of the main strategies is to provide a culture of education in the company. This will enable the workforce to learn and inculcate information that will drive productivity. A culture of education is important to ensure trust and support between colleagues. Collaboration between the staff in the post-pandemic era is a must because of its values concerning innovation and cost reduction. Upskilling is being considered a strategic response to the new demands and interests of the workforce. The Forum has projected that by 2025 there will be 85 million jobs affected by the shifting labor between machines and humans. At the same time, 97 million roles will be advocated, which will require advanced technical knowledge and a continuous digital transformation.
Essence of Upskilling and Reskilling
The two terms might sound similar, but they have different uses and real-world applications. In the case of upskilling, it is about upgrading the current skills concerning the job requirements that are changing continuously. In the post-Covid scenario, most workers had to upgrade themselves to understand the new requirements in relation to work ethics and health. Reskilling means people develop themselves by learning new skills for new job roles.
New job roles have been implemented in the post-Covid scenario, where companies are more inclined toward laying off workers and hiring temporary staff who are equipped with the knowledge. According to LinkedIn learning research, it was found that companies were investing quite highly in employee careers, and in such a case, 94% of workers would stay with the company longer. However, it is estimated that 2/3 of the organizations believe that employee workforce development programs provided by professional staffing services can help reduce the gap, but most companies are slow in the process and lack the technology to provide the services. Every organization in the post-Covid era has to concentrate on employee development so that the workforce is equipped with the knowledge and tools to survive in a highly competitive scenario.
Advantages of Upskilling and Reskilling
There are several benefits to upskilling and reskilling the workforce that will increase the productivity of the organization.
- Innovation and Collaboration – The biggest benefit is that it will increase innovation and collaboration in the company. Different employees engaged in diverse roles can collaborate on projects and bring in different skill levels. Upskilling can result in greater collaborations and stronger teams who share a common vision.
- Increase in productivity – With the new knowledge and skills, employees can work better than before. Employees will now be equipped with the skill to understand the new workforce trends in the business sector and use advanced-level technology to bring about greater productivity.
- Reduction in Hiring Cost – A study by Gallup stated that the money involved in replacing an employee could rise to almost 1 ½ to 2 times the employee's annual salary. Therefore with upskilling, the cost of hiring new people can be reduced while employee retention increases.
- Increase in emotional Intelligence – The pandemic has had an immense impact on the psychological development of the workforce due to the transition. Training organizations such as different professional staffing services can help companies by providing training that will help them understand their behavior and express their feelings while increasing communication.
- Getting new skills – Utilizing outsourced payroll services can help companies reduce the skill gaps by hiring employees who are advanced in the new skill levels in the post-pandemic era. Companies are crunched for time when it comes to reducing the gap in the workforce. In this case, external companies can provide upskilling services and employees with the required skill sets who have been continuously trained to reduce the gap.
It has been estimated that in the coming few years, a large number of roles will come up, which will require advanced knowledge of technology and other modern business skills. Upskilling and reskilling are important processes to equip the workforce with the required skills and capabilities and also reduce the costs of hiring at the same time.