However you approach it, employee upskilling is the hot topic du jour. For one, the COVID pandemic has wrought changes in the global economy, forcing companies to explore remote working or pivot completely. As a matter of fact, according to the latest TalentLMS Survey on employee ups killing and reskilling 42% of companies stepped up their reskilling/upskilling training efforts after the coronavirus outbreak.
But it’s not just the coronavirus outbreak that has made an impact in the way we work: it’s also the breakneck pace of new technological developments. With tech progressing more rapidly than ever before, the corresponding need for professionals to keep up increases. A McKinsey Global Institute research found that nearly 375 million workers will need to master new skills by 2030. Understandably, both employers and employees are becoming actively interested in upskilling training.
Are you currently considering starting your upskilling/reskilling initiative and are unsure where to begin?
There is no “one-size-fits-all” approach.
Your employee upskilling strategy will largely depend on your particular HR goals. For example: are you looking to build a flexible pool of entry to mid-level employees, or are you looking to increase/redefine managerial positions and create a culture of promoting internally? The answer to that will define what type of skills you should focus on training your employees in.
TalentLMS surveyed 282 training and hiring managers, C-level executives, and decision-makers, as well as 400 full-time employees (aged 18-54) in the US, on upskilling and reskilling. One of the things that became immediately apparent in the survey’s findings was that soft skills matter when making hiring decisions. In fact, the higher up the company chart, the more paramount soft skills become. For entry-level positions, hiring managers and decision-makers prioritize hard skills over soft skills by 60%. In mid-level positions, the split between soft and hard skills becomes an even 50-50. And when looking for executive-level jobs, then the focus is turned primarily on soft skills (81%) over hard skills (19%).
When it comes to upskilling employees, you should always keep in mind the future makeup of your company. How does that look like, ideally? And how beneficial will it be to your company’s growth that you train your future leaders today?
But let’s dig more into it. What do statistics have to say about upskilling training benefits both for employers and employees?
How Employee Upskilling Benefits Employers
Like we mentioned at the beginning of this article, with so many aspects of how we work changing fast, the ability to handle change is becoming a crucial skill. In fact, 68% report that they invest in reskiling or upskilling employees to handle changes within the organization. What’s more, another 65%, invest in reskilling/upskilling training to train employees on new technologies.
And so the question that immediately jumps to mind is a simple one: is it worth it?
Short answer: yes, offering upskilling training will only benefit your company
Findings show that upskilling and reskilling training for most employers has improved performance, employee retention, goals, and company reputation.
More specifically:
● For 75% of employers, employee upskilling increased productivity significantly. (Another 16% answered that productivity had improved a little, with only a 9% not seeing any increase at all.)
● 58% of employers said upskilling employees helped enough/ a lot with employee retention.
● For 69% of employers, offering upskilling training helped hit the company’s goals significantly (for another 15%, it helped a little).
● And for 63% of employers, company reputation improved significantly due to employee upskilling.
Of course, when considering whether an investment is worth it or not, one examines the costs as well as the benefits. Is offering upskilling training more economical than hiring an external candidate? A Deloitte report actually found that organizations can reskill an internal employee for one-sixth the cost of an external hire cost.
All things considered, upskilling employees comes with extensive benefits and minimal risk. But what do employees themselves think about the process?
The Main Upskilling Training Benefits for Employees
There is no doubt that employees see upskilling and reskilling training as a means of advancement. Sixty-six of the employers surveyed by Talent LMS said that the joy of learning new things and developing new skills was their top reason for participating in upskilling training.
But in most cases, that advancement is more psychological than tangible. Further findings suggest that when it comes to actual benefits from their upskilling/reskilling training, only 33% of employees have noticed a significant change in compensation. As for substantial growth within their company? Only 35% of employees say their training resulted in that.
More specifically:
● When it comes to productivity, 47% of employees said upskilling training benefited them significantly. (Another 34% said it had benefited them a little, with only 19% saying that upskilling training did not benefit their productivity at all.)
● 51% of employees reported an increase in confidence after completing their upskilling training. Another 29% saw a small increase in confidence.
● A staggering 52% of employees said they had not seen any increase in compensation due to upskilling/reskilling training. Only 33% of employees reported receiving a significant raise after completing their training.
● When it comes to growth within the company, 44% of employees say their upskilling training did not result in any growth at all. Only 35% of employees said they experienced significant growth within the company after completing their training.
These numbers are certainly thought-provoking. It seems that while companies are benefiting from employee upskilling, not many of them have actually closed the loop by offering tangible incentives and rewards to employees for completing their training.
Some extra insight on the matter comes from a Gallup study, whose findings showed that upskilling and reskilling training does not increase training participants' confidence that the company is preparing them for the future. To restore that confidence, companies need to build a process of providing ongoing feedback to employees — as well as tangible opportunities for continuous growth.
To Sum Up
With employee upskilling being on everyone’s minds, it is crucial to examine the benefits for employers and employees alike — and see if they match expectations.
While upskilling training is clearly beneficial to companies, there is a significant gap between employees’ expectations and their actual advancement. More specifically, 62% of employees hoped that reskilling and upskilling training would positively affect their job level and/or salary. However, only 33% and 35%, respectively, say there’s been a significant change in compensation and growth within the company.
If this gap is not bridged, it is very possible we will see employees’ engagement levels dropping in the future. And it will be only a matter of time before employee retention levels and productivity rates also drop with them.
Aris Apostolopoulos
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- Why You Should Start Your Upskilling/Reskilling Initiative Right Now - March 23, 2022
