Companies Plan On Reskilling Employees in 2024

In today’s rapidly changing job market, it’s becoming increasingly important for companies to invest in their employees’ skills and development.

With technology advancing rapidly and new job roles emerging, it’s crucial for companies to keep up with the changes and ensure their employees have the necessary skills to succeed.

According to the World Economic Forum, about half of all employees will require reskilling and upskilling by 2025 to keep up with the changing job market. This means that companies will need to start prioritizing reskilling and upskilling initiatives to stay competitive and retain top talent.

Reskilling is not just a short-term solution but an ongoing process. Companies can proactively identify the skills needed for the future to develop comprehensive reskilling plans. By doing so, they can empower their employees to thrive in the rapidly changing job market.

In this article, we’ll explore the difference between reskilling and upskilling, what reskilling entails, how companies can reskill their employees, and why many companies are failing to do so.

What Is the Difference Between Reskilling and Upskilling?

Before we dive into the specifics of reskilling, it’s important to understand the difference between reskilling and upskilling. While both terms are sometimes used interchangeably, they have distinct meanings.

Upskilling

Upskilling refers to the process of teaching employees new skills that are relevant to their current job role. This could include training on new software, learning a new language, or developing leadership skills. Upskilling is typically done to enhance an employee’s performance in their current role and help them advance in their career.

Reskilling

Reskilling involves teaching employees entirely new skills that are not directly related to their current job role. This could include learning a new technology, acquiring a new certification, or developing skills in a different field. 

Reskilling is often necessary when an employee’s job becomes obsolete due to technological advancements or changes in the job market.

Reskilling is becoming increasingly important as the job market continues to evolve. This means that many employees will need to learn new skills to remain relevant in their current jobs or to transition into a new role.

How To Reskill Employees

Reskilling employees can be a daunting task, but with the right approach, it can be a smooth and successful process. Here are some steps companies can take to reskill their employees effectively:

Identify the Skills Needed

The first step in reskilling employees is to identify the skills that are needed for the future. This could involve conducting a skills gap analysis to determine the skills that are currently lacking in the organization. Companies can also look at industry trends and predictions to identify the skills that will be in demand in the future.

Create a Reskilling Plan

Once the necessary skills have been identified, it’s important to create a reskilling plan. This should include a timeline, budget, and the resources needed to reskill employees. It’s also important to involve employees in the planning process to ensure their buy-in and commitment to the reskilling program.

Provide Training and Development Opportunities

Training and development opportunities are crucial for reskilling employees. This could include workshops, online courses, or on-the-job training. It’s important to provide a variety of options to cater to different learning styles and preferences.

Encourage Continuous Learning

Reskilling is an ongoing process, and it’s important for companies to encourage continuous learning. This could involve providing employees with access to online learning platforms, offering incentives for completing training programs, or creating a culture of learning within the organization.

Monitor Progress and Provide Feedback

It’s important to monitor the progress of employees as they go through the reskilling process. This could involve regular check-ins, assessments, and feedback sessions. This will help employees stay on track and provide an opportunity for them to voice any concerns or challenges they are facing.

Why Companies Are Failing To Reskill Employees

Despite the importance of reskilling, many companies are failing to do so. Here are some reasons why:

Lack of Resources

One of the main reasons companies are failing to reskill employees is due to a lack of resources. Reskilling can be a costly and time-consuming process, and many companies may not have the budget or resources to invest in it.

Resistance to Change

Reskilling often involves a significant change in an employee’s job role or responsibilities. This can be met with resistance from employees who may be comfortable in their current role and may not see the value in learning new skills.

Lack of Planning and Strategy

Without a clear plan and strategy in place, reskilling efforts can quickly become disorganized and ineffective. Companies may not have a clear understanding of the skills needed for the future or how to effectively reskill their employees.

Short-Term Focus

Many companies have a short-term focus and may not see the value in investing in reskilling for the long-term. This can lead to a lack of commitment and resources distributed toward reskilling initiatives.

The Benefits of Reskilling Employees

While reskilling may require a significant investment of time and resources, the benefits far outweigh the costs. Here are some of the benefits of reskilling employees:

Increased Employee Engagement and Retention

Reskilling shows employees that the company is invested in their growth and development. This can lead to increased engagement and motivation, which can ultimately result in higher retention rates.

Improved Performance and Productivity

Reskilling can help employees develop new skills and knowledge that can improve their performance and productivity. This can lead to better results for the company and increased job satisfaction for employees.

Adaptability and Flexibility

Reskilling employees can help them become more adaptable and flexible in their roles. This can be especially beneficial in today’s ever-changing job market, where employees need to be able to quickly adapt to new technologies and trends.

Cost Savings

Reskilling can be a cost-effective way for companies to fill skill gaps and meet their changing needs. It can be more cost-effective than hiring new employees or outsourcing work.

The Bottom Line

Reskilling is becoming increasingly important for companies to stay competitive and retain top talent. By understanding the difference between reskilling and upskilling, creating a reskilling plan, and providing training and development opportunities, companies can effectively reskill their employees. While there may be challenges and barriers to reskilling, the benefits far outweigh the costs, making it a worthwhile investment for any company looking to thrive in the future job market.