Understanding the Differences Between Upskilling and Reskilling and Their Benefits

The World Economic Forum Future Employment Report 2018 predicted that 75 million jobs in twenty major economies will be eliminated by 2022. At the same time, 133 million new positions, driven by technological developments and ongoing digital transformation, will be created. As new talents are demanded, your company may build the skills needed to remain competitive by upskilling and reskilling. 

Distinguish between upskilling and reskilling

According to the Cambridge dictionary, upskilling is the process of learning new skills or of teaching workers new skills. Reskilling is the process of learning new skills so you can do a different job, or of training people to do a different job. Both are now viable tactics for businesses to fight what should become an ongoing lack of skills. 

Looking for people with ‘adjacent skills’ that are close to the new skills your company requires is what reskilling entails. It offers an experience of lateral learning. More than half (54%) of employees, according to the World Economic Forum, would require ‘substantial’ restructuring by 2022.

In contrast, an upskilling culture entails teaching employees new, advanced skills in order to close talent gaps. This includes and enables your team members to progress throughout their present professional journey. These personnel may have been working for your business for several years and have a thorough knowledge of both your culture and your clients.

While two-thirds of organizations believe that workforce development programs will help to close the skills gap, they are hesitant to act due to financial constraints and a lack of appropriate technology to support internal initiatives. However, if you do not take action now, your company’s ability to meet long-term goals is jeopardized if you do not have access to the necessary skills. 

Skill gap: what is it and why does it happen?

In brief, the term ‘skill gap’ indicates the disparity between what employers want and what employees can give. For instance, there are a lot of positions, but few or no appropriate candidates. Alternatively, many job seekers with certain talents, but few or no businesses seek these skills.

Here are a few of the causes:

– Structural mismatch – between learned knowledge and the real needs of future employers

– Training systems – cannot continue with shifting technical advancements

– Employers – seeking individuals with extensive experience, yet the field breaks new ground

– Boomers: An elderly people retiring and thereby acquiring the ability and knowledge to no longer interest or be taught younger generations

But how can we narrow the gaps? By upskilling and reskilling!

What can you do as an organization?

In the next several years, upskilling and reskilling will become increasingly vital. Thankfully, you can take precautions to avoid this being a problem. Here are some suggestions:

– Set up your present employees’ training programs.

– Develop a mentoring system where experienced veterans pass skills still required to the younger generation.

– Concentrate on generating interdisciplinary and adaptable employees. The rotation of employment is a perfect illustration of how that might be achieved.

– Add to current job profiles new duties so that employees may gain new skills. 

– Employ specialists to cover holes that your existing employees still have to recruit. And learn from your know-how!

Benefits of upskilling and reskilling for an organization

Minimize training and recruitment expenses

Entry and training new staff costs businesses money and may be especially costly if you want expertise in specific areas. You’re not only teaching new workers in their own particular function. You’re also teaching them about the company’s processes, software, and protocol.

All these things are well known to your present personnel and you need not retrain them, which saves you money from the start. Training isn’t the only thing that takes money to acquire new employees: recruitment, interviews, background checks and much more are expensive efforts. After all, there is still no assurance that your freshly acquired talent will be successful in its employment or will not stop for another position.

Retaining talent

When employees perceive that the firm invests in them or presents them with fresh possibilities to develop their professional profile, they increase their loyalty. They are less willing to take another job offer and tend to stay longer with the organization.

Continued employee training improves the reputation and brand image of the organization as an employer. For specialists in these sectors, the firm is far more desirable and will find the attraction of fresh talents much simpler.

Being the top HR consultant in Vietnam, Talentnet is able to employ state-of-the-art technology, high-protection, in-depth understanding of labor legislation and suitable human resources solutions. For further information, please contact us.

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