Upskilling Employees: Advantages and Methods

The rapid evolution of technology is disrupting the job market in profound ways. Keeping pace with digital transformation presents a significant training challenge for organizations, as new technologies offer immense business opportunities, upskilling employees and create skill gaps among the existing workforce.

According to a report from Gartner HR Research, 58% of the current workforce will require new skill sets to perform their jobs successfully in the future.

To bridge this widening skills gap, companies need to embark on an upskilling revolution that empowers employees to undergo cross-departmental training, acquire new skills, and equip themselves with fresh and exciting capabilities, ensuring they stay ahead of the competition.

What is Upskilling?

Upskilling involves acquiring new skills and developing relevant competencies that are essential in the present work environment and for future prospects. It emphasizes enhancing employees’ skill sets through ongoing training programs, enabling them to progress in their current roles and explore more opportunities within the organization. In order to thrive in the digital era, employees must embrace a lifelong learning mindset and demonstrate a willingness to acquire new capabilities demanded by the rapidly evolving marketplace.

Upskilling vs. Reskilling for Employees

Upskilling and reskilling are both practical approaches that help employees close the skill gap and acquire the necessary competencies to stay competitive in the ever-changing workplace. While each term has its advantages and specific scenarios where it is most suitable, it is important to determine when to utilize upskilling and when to consider reskilling. By examining the key distinctions between these two approaches, we can gain a better understanding of their respective applications.

1. Focus

Upskilling involves employees acquiring additional knowledge and skills that enhance their current job performance without transitioning to a different role. It focuses on equipping employees with the necessary tools and expertise to excel in their positions more effectively and efficiently.

In contrast, reskilling occurs when employees develop new skills to undertake a different job function within their organization. It is applicable when an employee’s current skill set aligns with the requirements of a new position. For instance, a data entry specialist with proficient technical skills can be reskilled to assume a data analyst role.

2. Implementation

Upskilling is employed in various scenarios, including:

• Supporting employees in excelling in their current roles.
• Assisting the workforce in adapting to industry advancements and changes.
• Facilitating the transition to new software implementations.
• Ensuring that the workforce maintains confidence and expertise in their respective fields, even as those fields evolve and progress.

Reskilling is employed in various scenarios, including:

• Retaining valuable, high-performing employees whose current roles have become outdated or no longer relevant.
• Retaining a group of employees whose previous job functions within your organization are no longer necessary due to the discontinuation of legacy software.
• Retaining existing employees while implementing a business strategy that involves transferring personnel from one department to another.

The Need for Upskilling Employees in the Digital Age

Here are the reasons why employees should consider upskilling in the digital age:

1. Machines may be coming for your job by upskilling employees

According to a report, technological advancements are expected to disrupt approximately one in three jobs over the next decade. These changes occur daily and have the potential to impact various industries.

Certain highly skilled roles, such as tax consultants, marketers, and financial traders, often involve repetitive tasks that can be easily automated. As a result, companies are increasingly adopting digital technologies like artificial intelligence (AI) to streamline processes and achieve cost-effective outcomes.

However, it is important to note that digital technologies are not intended to completely automate entire job functions. Instead, they primarily target specific manual tasks within a job. In the future, machine-driven automation will handle process-oriented tasks, while tasks that require human cognition, such as analysis, problem-solving, and social skills, will continue to be performed by humans.

To effectively collaborate with AI and other digital technologies, individuals must proactively upskill and prepare themselves for the future of work. By acquiring new knowledge and capabilities, they can enhance their compatibility with emerging technologies and adapt to the evolving ways of working.

2. Digital skills are vital for upskilling employees

Tech companies, as well as organizations in the digital economy, are recognizing the crucial importance of digital skills in the modern era. Skills like AI, ML, data science, business analysis, programming and development, data visualization, digital marketing, and cyber security are highly sought after and will remain in high demand in the future.

By upskilling and acquiring these in-demand skill sets, employees can effectively navigate and adapt to the evolving dynamics within their organization. This proactive approach to upskilling not only enhances job security but also enables individuals to contribute to their company’s success, even in times of restructuring or organizational changes.

3. Future-proof your career by upskilling employees

As technology advances, job roles, and business processes evolve continuously. It has become essential for employees to upskill themselves to keep pace with the rapid changes in technology. By acquiring new skills, individuals can future-proof their careers, seize more opportunities, and explore different job roles, enabling them to stay ahead in an ever-changing landscape.

The Benefits of Upskilling for Employers

Organizations are constantly reshaping their workforces to enhance productivity, foster digital innovation, and achieve growth. In this transformation journey, upskilling employees play a pivotal role. Now, let’s explore some of the key advantages of upskilling:

1. Increased Employee Retention by upskilling

Maintaining high levels of employee satisfaction throughout the organization is vital for achieving strong employee performance and minimizing turnover rates.

According to a study conducted by Willis Towers Watson, 70% of employees deemed to be at a high risk of leaving expressed their desire to seek new opportunities because they perceived a lack of potential for career advancement in their current roles.

To ensure a high level of employee satisfaction, organizations must prioritize making employees feel valued. One effective way to demonstrate this is through upskilling initiatives, which show employees that their professional development is a priority. By investing in their growth, organizations can foster a sense of purpose and engagement among employees, leading to increased productivity, satisfaction, and employee retention rates.

2. Saves time, money, and energy

Before seeking external talent, it is worthwhile to explore the possibility of internal mobility within your organization. Upskilling or reskilling your current employees can uncover the top talent you are seeking.

Choosing upskilling over external hiring is a strategic decision as it is more cost-effective to retain and train existing employees who are well-suited for the open role. Internal hiring also provides the advantage of familiarity, trust, and demonstrated skills from previous performance. Additionally, recruiting and training new hires require significant time, effort, and planning.

By investing in the development of your current employees, you can tap into their potential, enhance their skills, and ensure a seamless fit for the vacant position. Internal mobility not only saves resources but also promotes employee loyalty, engagement, and organizational continuity.

3. Attracts new talent

When companies prioritize employee development and career advancement, it fosters a sense of value and loyalty among employees, turning them into influential brand ambassadors. As a result, they are more inclined to recommend your organization to their extended network, including friends, former colleagues, and family members. This expands the pool of potential talent available to you when you need to expand your team, ensuring a diverse range of candidates. Furthermore, these employees are dedicated to driving the growth, success, and achievement of company goals, contributing to overall organizational success.

4. Boosts morale

Teams that are provided with diverse learning and development opportunities experience elevated morale in the workplace. Offering continuous learning and upskilling initiatives not only creates a supportive working environment but also fosters happiness, satisfaction, and motivation among employees in their respective roles. This nurtures internal contentment and leads to a more optimistic perspective regarding their future prospects within the company.

The Benefits of Upskilling for Employees

Upskilling brings advantages not only to the employer but also to the employee. Here are some of the major benefits that upskilling offers to the employees themselves.

1. Negotiate a Raise

Upskilling brings benefits to both the employer and the employee. Here are some of the key advantages that upskilling provides specifically for employees.

2. Career Change

Another advantage of upskilling is the opportunity it provides for career transition. By acquiring new skills, you can position yourself for a promotion within your current organization or pursue similar job opportunities at different companies.

3. Improve Yourself

Upskilling empowers you to enhance yourself and your capabilities. The act of learning not only enriches our lives but also enables us to achieve personal and professional fulfillment.

How to Develop an Upskilling Strategy for Your Employees

By proactively identifying the necessary skills for the future, implementing impactful training programs, and fostering a culture of ongoing learning and development supported by suitable educational technology, organizations can effectively upskill their workforce for the digital age.

Here are some steps to assist you in designing effective upskilling initiatives for your workforce:

1. Conduct a Skill Gap Analysis

A skills gap analysis is an evaluation conducted by HR teams to assess whether the existing skills of their workforce align with the overall requirements of the company. The analysis helps identify the skills employees already possess, areas where improvement is needed, and skills that need to be developed.

Once the skill gap has been identified, you can address it by utilizing online courses and training programs to upskill your workforce. This will enable you to build a team of competent workers who can effectively contribute to achieving your company’s objectives.

2. Upskilling Your Employees to Develop Plans

To engage employees in the upskilling process, organizations should highlight the significance of upskilling for their career advancement. This can be achieved by integrating specific skills into employees’ annual goals and learning objectives.

Ensure that your employee development plans align with future workplace skills that support the company’s overall objectives while addressing the unique development needs identified through skill gap analysis. These plans will empower employees to acquire the knowledge and skills necessary to excel in their roles, prepare for the future, and contribute to the organization’s success.

It is important to set clear and measurable goals for employees, making them specific, attainable yet challenging, and time-bound. For example, a goal could be for all sales department employees to master two critical future skills within a six-month timeframe.

3. Choose Your Employee Training Method(s)

People have diverse learning styles, with some being visual learners, others benefiting from hands-on experience, and some preferring guided instruction. To identify the most suitable employee training method for your workforce, L&D teams should assess employees’ learning styles, as well as consider factors such as training objectives, goals, cost, and timeline.

Here are some of the most effective employee training methods to consider:

• eLearning
• On-the-Job Training
• Instructor-Led Learning
• Roleplaying
• Coaching
• Simulation Training
• Group Activities
• Video Training
• Cross Training
• Job Shadowing
• Case Studies

4. Utilize Technology

Harness the power of employee training software to facilitate impactful upskilling programs. These software tools enable you to develop captivating training modules, maintain compliance and security standards, monitor employee engagement, evaluate performance, and collect valuable feedback. Now, let’s explore two widely used learning and training software options:

• Learning Management System (LMS): A corporate Learning Management System (LMS) takes care of all facets of employee training, encompassing content creation, delivery, and tracking. It aids in identifying and evaluating individual and organizational learning objectives, monitoring employee advancement towards those objectives, and gathering data to enhance the learning experience.
• Digital Adoption Platform (DAP): A training software that seamlessly integrates with various enterprise applications, enabling users to learn while performing their work. This software, known as a Digital Adoption Platform (DAP), generates a contextual task list that includes interactive walkthroughs, videos, and self-help menus, guiding users through each aspect of an application. By utilizing DAPs as your training software, employees are empowered to enhance their skills on the latest tools, applications, or processes without interrupting their workflow and productivity.

5. Follow Up and Track Progress

The final step involves assessing the overall effectiveness of the upskilling program to determine if it achieved its objectives. As mentioned earlier, employee training software enables you to evaluate the impact of your training and development initiatives. Monitoring key performance indicators (KPIs) such as course completion rates, training progression rates, assessment scores, reduction in skill gaps, improvement in proficiency or productivity, and more, helps gauge the effectiveness of the training and the acquisition of knowledge and skills throughout the upskilling program.

Here are some metrics to consider when measuring training effectiveness:

• Employee feedback: Gathering feedback from employees after the training allows you to assess whether the training effectively helped them acquire new skills.
• Assessments: Conducting tests, quizzes, or demonstrations helps evaluate the skills, knowledge, and learnings acquired by employees through the upskilling training programs.
• Post-training job proficiency: Observing employees in their day-to-day tasks enables you to determine whether they are effectively applying the newly acquired skills.

6 Ways to Upskill Employees in Your Workforce

There are multiple methods available to enhance the skills of your workforce. You can select the most suitable approach based on your organization’s requirements, which can be determined through a skills gap analysis.

1. Cross-Training by upskilling employees

Enable employees to undergo cross-training in positions that necessitate similar skill sets to their current role. Cross-training provides employees with the opportunity to learn and enhance their skills while on the job, setting the foundation for potential transitions into evolving roles.

For example, an account manager who exhibits strong customer interaction skills could undergo cross-training to become a customer success manager. This role builds upon similar skills but takes them to a more advanced level. Subsequently, the employee can leverage their enhanced customer success skills to benefit their team and explore potential future opportunities for role transitions.

2. In-App Guidance in the Flow of Work

Another effective method for upskilling is in-app guidance, particularly valuable for adopting new technologies. It offers a range of resources, including interactive walkthroughs, tooltips, and self-help widgets, to assist users in familiarizing themselves with new software or products. In-app guidance facilitates learning within the workflow by providing users with direction and tools to find contextual answers to their questions at the moment they need them.

3. Job Rotation

Job rotation involves the deliberate practice of transferring employees between different roles to enhance their skill sets, knowledge, and competencies. These rotations are typically temporary and predominantly occur at the same level, enabling employees to gain diverse experiences and broaden their expertise.

4. Peer-to-Peer Learning

Peer-to-peer learning involves collaborative efforts between colleagues to exchange, enhance, refine, and develop new skill sets. This approach enables employees to collectively explore novel concepts and share insights with their peers who are working on similar projects. The opportunity to both teach and learn from one another fosters the growth of well-rounded employees with diverse skill sets, promoting effective teamwork.

One of the appealing aspects of this type of upskilling is its informal nature, which encourages employees to establish connections, ask questions without hesitation, and learn through observation of their peers.

5. Outsourcing

If your organization lacks the internal resources to offer upskilling opportunities, you have the option to engage freelance specialists or contractors. These individuals possess the precise skills, competencies, and experience required to initiate a new project, providing valuable expertise to your team.

6. Self-Training by upskilling employees

To promote upskilling, managers can motivate their employees to engage in self-directed learning. By eliminating obstacles and offering incentives, employees are encouraged to take charge of their own learning journeys. Here are a few ways to foster self-training:

• Facilitating paid training time
• Recognizing and rewarding employees who proactively upskill outside of work hours
• Granting employees the flexibility to participate in workshops and seminars during their regular work hours
• Supplying curated lists of valuable resources, including YouTube videos, podcasts, online articles, and more, to support employees’ self-learning endeavors.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com