As this is largely an issue of supply and demand, it follows that businesses must close the gap by investing in the supply-side of their skills pipeline. Our traditional education institutions simply do not produce enough skilled talent to meet the demand, and they do not respond quickly to changes brought on by technology and other factors.
The need for people to learn new skills is paramount, but it also compounds the problem. Since these are skills that run the gamut across silos and verticals, it becomes challenging to find a single solution that can empower success for all.
Not just “hard skills” like coding, data science, cybersecurity, and cloud computing are lacking. The need for effective leadership has never been more important in what has become a highly virtualized, remote, and socially distant world.
In a time where most people are always online, connected, and instantly accessible, it is stunning how isolating and lonely the virtual workplace can be. The need for leadership has never been more critical in bringing teams together and rallying around a common goal.
Unfortunately, only 41% of organizations believe their leadership development programs build leaders in a way that benefits the business (Global Human Capital Trends 2019 report published by Deloitte).
Successful programs have adapted to develop a curriculum that offers balance, encompassing hard skills and power skills, like communication and collaboration, critical thinking and problem-solving, empathy, teamwork, creativity, and adaptability.
Investing in employee skills is crucial for success, but only 34% of workers today feel supported by their organization’s skill development opportunities.
What Are Reskilling and Upskilling?
Upskilling and reskilling are two critical concepts that shape the landscape of professional development. Both are done in alignment with an organization’s strategic priorities and their current workforce or job architecture. In order to meet goals, organizations must have the right talent in place to carry out the work. If they don’t have employees on staff already, they must either hire someone new or upskill and reskill their existing base, which tends to be more popular and cost-effective.
Upskilling refers to enhancing existing skills or acquiring new ones that align with the changing demands of the job market. It's not just about learning new software or mastering a new tool; it involves broadening one's understanding of industry trends, emerging technologies, and evolving customer needs. By upskilling, professionals can enhance their marketability, improve their performance, and increase their value to their employers.
But what’s actually involved in upskilling individuals?
Learning programs often include a range of options to close a skills gap, including mentorship, on-demand courses, live training, and hands-on modules. At Skillsoft, we often see our clients create custom learning journeys that meet their unique needs at the time. Consider how DB Systel GmbH launched a program to upskill recent grads for the roles they need that require a specific skill set. Programs like this work to close a gap, while helping employees who have a baseline skill set build on their foundations.
On the other hand, reskilling focuses on learning entirely new skills, often to transition into a new career or adapt to significant industry changes. Reskilling is about reinvention. As industries evolve and certain roles become obsolete, professionals may find themselves needing to pivot into new areas. Reskilling is about leveraging transferable skills and experiences while learning new skills that are in demand in a different field or industry.
As employees build new skills, they can measure their progress through regular assessments. In Skillsoft’s case, these are called Skills Benchmarks, which test a person’s skills at one stage of their journey and then recommend training to close their skills gap — clarifying the exact training they should take to upskill or reskill. Then, employees test again later after completing training to see their progress. Along the way, they earn badges to recognize their efforts and validate their newly acquired skills.
As organizations launch programs to upskill or reskill their workforce, they often see the benefits take many forms, including a tangible return on investment. Cost savings in the form of reduced administration time, a lower training or talent acquisition cost, and even higher rates of productivity all contribute to a program’s success. Forrester Consulting produced Total Economic Impact studies for Skillsoft, showing how clients often see the returns for their training programs. See the impact of technology-focused training here.
Overall, upskilling and reskilling are strategic tools that individuals and organizations can leverage to stay relevant and competitive.
