As technological advancements, economic shifts, and global challenges continue to reshape industries, so does the need to develop a highly-adaptable and skilled workforce.
In a soon-to-be-released report, Canadian workers overwhelmingly believe their employers should support their professional development through upskilling. But what about reskilling?
Reskilling is a pivotal strategy for empowering workers with the tools and knowledge necessary to thrive in the modern era while supporting your business imperatives.
What is reskilling?
Reskilling is the process of training employees in new skills. When employees are supported in building new capabilities, they can take on different responsibilities or keep up with changing requirements in their current roles. They can also transfer to a different job at the same company.
Employee reskilling is one of two strategies companies commonly used to expand the skills of their employees. The other skill-building strategy is upskilling, which also involves teaching current employees new skills but is usually done with a different intent. The standard purpose of upskilling is to help employees advance their careers. This can include staying in the same job but with additional responsibilities or moving to a new company.
By investing in reskilling, companies support their employees as they learn and grow while simultaneously preparing for the future and adapting to changing demands for skills. Time and money are saved by retaining and retraining employees rather than making new hires.
Why is reskilling the workforce important?
Canada is facing a record-tight labour market and talent shortages are impacting many employers. Nearly 29.5% of all businesses expect recruiting skilled employees to be an obstacle over the next three months, according to Statistics Canada, led by employers in construction, health care and social assistance, administrative and support, waste management and remediation services. These labour challenges lead businesses to adapt their recruitment efforts, including looking closer at soft skills.
One significant way to respond to these external factors is reskilling the workforce. “Leading-edge companies and organizations already recognize the competitive advantages gained through the value proposition of continually investing in upskilling and reskilling their workforce,” states the Government of Canada’s report on building a learning nation. There’s room for improvement, though, considering Canadian employers invest relatively little in training compared to their peers in the OECD, according to the Future Skills Centre’s report on upskilling and reskilling.
It’s not just Canadian companies that are facing these issues. An estimated 1.1 billion jobs “are liable to be radically transformed by technology in the next decade,” writes the World Economic Forum, and half the global labour force might need reskilling by 2025. To close such skills gaps, the organization’s ambitious reskilling revolution 2030 program prepares people for tomorrow’s economy through better education, skills and economic opportunity.
What are the benefits of employee reskilling?
Reskilling offers benefits to both employers and employees. A McKinsey Global Survey on future workforce needs shows organizations with reskilling programs are seeing positive results, including enhanced bottom-line growth and improved performance in various ways, such as employee satisfaction, retention, customer experience, and brand perception for prospective employees and customers.
By developing the talent you already have, you can beat talent shortages and create a versatile workforce able to adapt to current and future needs. Reskilling is also a way for your company to attract top talent and boost your employer branding, considering job seekers want to work for organizations that are committed to their development.
At the same time, you’ll be increasing employee happiness and loyalty. Research shows that providing learning opportunities reduces turnover and improves employees' engagement with their daily work. Offering flexibility and room to grow are valuable ways to curb job dissatisfaction and retain employees. Everyone benefits when companies and leaders help their workforce reach its full potential.
How can organizations implement reskilling programs?
Closing the skills gap and prioritizing learning and development looks different company by company, from ambitious corporate strategies to partnerships with universities and experimenting with pilot programs. Here are four ideas to get you started.
- First, identify the skills your organization needs. This article on building critical skills and competencies describes the method of talent gap analysis that can help you determine your organization’s projected skill and hiring needs.
- Use a career pathing program to introduce reskilling. Such a program lets employees visualize a longer-term path for their career, including specific timelines, goals and required skills and training. Career pathing programs also help employees see future opportunities and help companies better understand their talent.
- Consider a variety of methods and tools to train employees. Once you know your skill gaps, you can look closer at how your people might gain new capabilities, such as job shadowing, mentoring, online or in-person training courses and on-the-job training. Be mindful that different people have different learning styles, and monitor progress so you know what’s working and what’s not.
- Prioritize an overall culture of learning and development. “As technology changes the nature of work, Canadian companies must create a culture of continuous learning to ensure employees have the skills they need,” states the Future Skills Centre, a pan-Canadian initiative focused on skills development, in their report on upskilling and reskilling the workforce.
Reskilling programs will look different organization by organization, given the varying needs of each firm. No matter the specific steps you choose to take, introducing a reskilling program will help keep your employees happy while also future-proofing your organization. Given the many disruptions we face now and are poised to face in the future, reskilling the workforce is imperative for businesses.
