Technology is rapidly changing the business environment. Estimates indicate that within the next year, more than 50% of American workers will need new skills to continue to perform their current roles. In response, forward-thinking companies are investing in “upskilling.”

What is Upskilling?

Upskilling trains employees in new abilities. These skills may help them adapt to changes within their current position or prepare them to fill another role within the organization.

“Upskilling is important because the American workforce is changing,” Ardine Williams, vice president of workforce development at Amazon, told SHRM. “There’s a greater need for technical skills than ever before.”

Upskilling prepares employees and organizations to meet future innovations and remain competitive. 

What are the Benefits?

Upskilling your workforce is an investment in time and money, but it can pay off in several ways.

1. Increases Employee Retention

According to recent reports, retention rates may be 30% to 50% higher in companies that value continued learning. Conversely, up to 70% of employees would leave a job that lacks growth potential.

“Providing reskilling opportunities to employees increases retention because workers feel invested in the company and have the chance to learn new skills (and eventually move into higher-tech roles),” says Entrepreneur.

2. Improves Morale

Companies that provide training for their staff can see a boost in morale.

“When companies demonstrate a commitment to employee development and career progression, employees feel valued and become the strongest brand advocates for your business,” says Whatfix, which helps companies integrate new technology. They’re more likely to recommend your organization to others, expanding your talent pool as you work to increase staff. “It also means they’re dedicated to making a company grow, hit its goals, and be overall successful.”

3. Keeps Company Competitive

Employers who keep pace with technological advances have an advantage over those who respond more slowly to emerging trends. Not only do proactive businesses remain agile, but there’s less chance of losing staff because they haven’t acquired the skills necessary to adapt to their role.

Reskilling employees also is less costly than hiring new talent. As Manpower Group notes, “the cost of turnover and replacement can exceed 30% of wages, while the cost of training remains less than 10% of wages.”

4. Increases Diversity and Inclusion

Are some departments or roles within your organization more diverse than others? Upskilling supports inclusion and helps develop a more universally diverse workforce by providing a path to positions with more responsibility and better pay.

“When a company offers upskilling, it creates the American dream for its workforce,” Ryan Carson, CEO of an online coding school, told SHRM. “Employees have a career ladder, a path for them to grow and build more wealth.”

Whether training takes place on-site or virtually, through mentoring and shadowing programs or mini sessions, an investment in a continual learning program can have long-term benefits for your organization.

TPD’s Total Workforce Solution addresses all of your talent acquisition needs – including direct hire and contingent workers – and employee relationship management, reducing your costs and freeing you up to focus on business. Contact us today for your workforce solution!