The Benefits of Upskilling for the Future of Work

With the rapid pace of change in most Canadian workplaces in recent years, the benefits of upskilling are no longer just for employees looking switch roles. In almost every sector, learning new tech and communication skills is essential for workers to compete and remain productive — even in their current position.

For employers, facilitating opportunities to upskill not only helps teams meet their goals, but can also drive company growth and encourage retention.

What does upskilling look like in Canadian workplaces?

For employees and candidates, upskilling is the process of training and building critical skills to perform current roles and adapt to a changing, increasingly digital, workplace environment.

Across all sectors, according to a recent report by the Conference Board of Canada and the Future Skills Centre, basic digital skills are becoming insufficient — as even previously lower-tech industries like construction and retail undergo digital transformations.

For companies to grow and remain competitive, says the report, they need talent that can manage digital tools and workers who are willing to advance their existing skills.

The specifics of upskilling differ by industry. In banking and finance, for example, reskilling has focused on digital acceleration, increasing employee knowledge in data science, leadership training and resources to help employees adapt to the digital economy.

At the same time, upskilling within the Canadian workforce is still a work in progress. As Statistics Canada data shows, 56% of Canadian businesses reported that their overall workforce was not fully proficient enough to perform their job at the required level in 2021. The prevalence of workforce skills gaps increased to nearly 74% for small businesses. This is highest in sectors like accommodation and food services, utilities, retail and manufacturing.

Why is upskilling important for the future of work?

Employees and top talent are not just training for today’s roles — they are preparing to be effective, productive and competitive in a rapidly evolving workplace.

Factors including tight labour market conditions, globalization, digitalization and aging are changing in-demand skills in Canada, says a recent OECD report. This is ultimately transforming and eliminating some jobs while creating new positions that require different skills.

“Many Canadians could see their employability threatened unless they acquire new skills,” says the OECD.

Reskilling is also a key priority for Canadian workers themselves. As a recent survey by Leger in collaboration with Polytechnics Canada found, some 90% of Canadian employees believe skills development is important — and 72% of workers say they want more information about mid-career training.

How to support employees in their upskilling journey

For employers, facilitating opportunities for employees to learn new skills also has important implications for attraction, retention and loyalty, says PwC, as it gives employees a sense that they are supported in the workplace.

According to the Mercer’s 2022 Global Talent Trends report, 77% of employees said they trust that their organization will teach them the skills they will need if their job changes because of AI or automation, up from 55% of employees in 2020.

Ultimately, employers and HR leaders have a key role to play in helping teams build key competencies for the future of work, from encouraging learning to providing opportunities to reskill in the workplace. Here are three ways to facilitate the employee upskilling journey:

Explore strategies to encourage upskilling

Ideally, the plan for developing new skills should involve a two-way conversation between organizations and top talent, Gartner explains. While companies can identify the skills they need and those that may be obsolete, employees can share their interests, which helps ensure upskilling efforts are mutually beneficial. This approach, they say, may also lead to better job performance.

Companies can also explore various approaches to internal skill building. One of the most impactful strategies for closing skills gaps, according to HR leaders surveyed by Mercer, is “targeting learning.” This involves tailoring reskilling efforts towards identified skills gaps in the workforce.

Companies can also look to reward employees’ acquisition of new skills or certifications through compensation, for example, implement personalized and gamified content as well as implement “social learning,” which includes sharing knowledge between peers or from experts to novices.

Go beyond tech

To thrive in the digital workplace and integrate with global markets, the OECD explains, Canadian workers need to develop new technological skills.

At the same time, the changing work environment means employees also need to build new social and emotional skills in areas like communication, self-organization and management.

As PwC noted in its 2021 survey of Canadian office workers, when deciding how to reskill, leaders should consider a shift towards supporting employees rather than just “broad tech upskilling.”

This, they say, includes training and empowering managers to develop further leadership skills in “root-cause problem-solving” and streamlining projects which will increase team engagement, productivity and retention.

Facilitate learning opportunities

Digital upskilling is essential for employees and their employers to grow and compete post-pandemic, as the Future Skills Centre explains. But companies need to foster a culture of continuous learning and development where reskilling becomes a regular part of the job and does not add to existing workplace responsibilities.

As such, they suggest companies carve out time during the workday for employees to engage in training, rather than expecting them to do so on their own time.

As part of this, employers may wish to consider covering the cost of reskilling. When this is not possible, leaders can also provide employees with valuable information on the resources that can help get them to take their education further.

For example, the Canada Training Credit is a refundable tax credit available on the cost of eligible training fees or courses. The Federal government’s Lifelong Learning Plan also allows individuals to withdraw up to $20,000 from their Registered Retirement Savings Plan to fund full-time post-secondary education or training.

Upskilling not only has important benefits for employees looking to excel in their current roles — it is essential for top talent to be able to compete and thrive in a changing workplace. Partnering with employees on opportunities for reskilling will help them achieve the digital and leadership skills they—and your business—need for the future of work.