Continuous Learning As Change Management
The workforce and world at large are rapidly changing. From increasing digitization to advancements in robotics and Artificial Intelligence (AI), organizations and employees are witnessing incredible technological change. Although the natural impulse is to resist change, it's more important now than ever before for organizations to learn, adapt, and prepare workers to do the same. Companies can do this at scale by investing in upskilling and reskilling programs. That way, leaders and employees can work together to build resilience in an ever-changing labor market. Before diving deeper into upskilling and reskilling, though, let's take a closer look at why now is the time for leaders to make this investment.
What's In This Article?
- Why Organizations Need To Upskill And Reskill Their Workforce
- What Are The Benefits Of Investing In Upskilling And Reskilling Programs?
- How Can Organizations Implement Upskilling And Reskilling Programs?
- Future-Proof Your Organization By Investing In Upskilling And Reskilling Programs For Employees
Why Organizations Need To Upskill And Reskill Their Workforce
According to Manisha Dhawan, founder and CEO of MPath Coaching, the acceleration of advanced technologies has diminished the shelf life of previously valuable skills. "Maybe 10 years or 20 years ago, we could essentially have similar skillsets for about a decade or so," Dhawan said in a 2021 YouTube video on upskilling and reskilling, "but the half-life of a skill is now about 2.5 or 5 years just because of the rate of change [and] how technology is transforming."
Dhawan's observation is even more relevant now with rapid advancements in AI, which the World Economic Forum reports has contributed to employers anticipating 44% of workers' skills to be disrupted in the next 5 years. Predicted skill disruption and the fact that 62% of leaders report that their organization has an AI literacy gap underscores the importance of investing in upskilling and reskilling programs. Such initiatives enable organizations to build a workforce of employees who have the skills needed to navigate an increasingly unpredictable future. The bottom line is that if leaders want to ensure their companies flourish in the future, upskilling and reskilling workers is not only prudent but paramount.
What Is Upskilling?
Upskilling is when an organization provides training programs and development opportunities to build on an employee's existing skills. It helps employees expand their knowledge and expertise so they can increase their value in their current role.
Organizations can upskill employees by offering online courses, helping them earn industry-recognized certifications, and hosting workshops for them to attend. Here are a few more concrete examples of how organizations can upskill employees:
- Teaching nurses new medical technologies to improve patient care
- Offering educators courses on AI to streamline grading and lesson planning
- Providing graphic designers certifications.
What Is Reskilling?
Reskilling is teaching an employee new skills so they can transition into a different job or industry. Organizations may initiate reskilling to change an employee's duties to align with new business goals.
There are multiple ways organizations can help employees reskill. Namely, by paying for them to pursue a new degree, expanding job shadowing and mentorship opportunities, and implementing rigorous boot camps and training programs. Here are examples of how reskilling might look like in the real world:
- Allowing accountants to learn more about sales by shadowing sales representatives
- Offering business courses so human resources professionals can shift into business development
- Hosting content creation workshops so digital marketers can transition into content creator roles
What Are The Benefits Of Investing In Upskilling And Reskilling Programs?
Organizations derive multiple benefits from upskilling and reskilling employees, including:
1) Reduced Skills Gaps
Upskilling and reskilling programs help close skills gaps by equipping employees with the knowledge and practical experience they need to meet industry demands and organizational goals. There's data to support this. According to TalentLMS and Workable's State of Upskilling and Reskilling in 2024 report, 64% of employees said that upskilling and reskilling have been useful for building their confidence in navigating changes in roles or industries. 65% of employees also said upskilling and reskilling have enhanced their ability to adapt to new technologies.
2) Cost Savings
A lack of investment in skills like AI and data literacy can have costly repercussions. A 2024 Datacamp report found that teams who lack these critical skills suffer from poor and slow decision-making, decreased productivity, and a lack of innovation—all threats to a company's bottom line. By investing in skills-based training, however, organizations can save costs and even see a Return On Investment.
Additionally, continuously hiring and retaining external hires is expensive and time-consuming. However, if companies focus on investing in current employees and building a culture of continuous learning, they can build a more resilient workforce that is responsive to their changing needs. As a result, organizations avoid the costs associated with frequent external hires.
3) Increased Competitiveness
By upskilling and reskilling their employees, companies gain a competitive advantage. For instance, workers trained in new skills and software can perform their tasks better and faster than those at competing companies. And by extending their competitive advantage, organizations can attract and retain more customers. This ultimately generates greater sales.
4) Improved Employee Recruitment And Retention
A 2018 LinkedIn Workplace Learning Report found that 94% of employees would stay longer at a company if it invested in their professional development. This makes sense as employees who feel they're invested in and see a clear path to advancement within an organization are more motivated to stay. Research also shows that both millennial and Gen Z professionals prioritize career development. So, if an organization becomes known for offering professional development opportunities, it'll attract new talent and remain competitive.
How Can Organizations Implement Upskilling And Reskilling Programs?
Leaders can take seven steps to implement upskilling and reskilling programs at their organizations:
1) Assess Readiness To Upskill And Reskill
Before moving forward with a reskilling or upskilling initiative, leaders must assess whether their organization is prepared to take this action. This ensures an initiative doesn't fail or waste precious resources.
The U.S. Office of Personnel Management (OPM) has a reskilling toolkit to help leaders make this assessment. For example, the OPM says that leaders should ask four questions before implementing a reskilling or upskilling initiative:
- Does leadership support reskilling or upskilling?
- Does the company have the appropriate resources to effectively reskill or upskill?
- Does the company's human capital operating plan (HCOP), workforce, strategic, and/or performance plans support reskilling or upskilling?
- Do company policies support upskilling and reskilling?
When leaders can answer affirmatively to these questions, they can proceed with their upskilling and reskilling efforts.
2) Analyze The Workforce And Identify Skills Gaps
To effectively analyze their workforce, leaders must determine what gaps lie between current and anticipated workforce needs. They should also determine what resources their current workforce offers and how those resources will evolve over time. Finally, leaders must decide the type, number, and location of the employees and managers they'll need to ensure upskilling and reskilling efforts are successful.
3) Set Clear And Measurable Goals
For upskilling and reskilling efforts to be effective, leaders must establish clear objectives that all stakeholders can agree to, including executives. When developing goals, consider questions and statements like "What does success look like?" "In order to do X…," and "So, that I can do X." Leaders should also determine how they'll measure or quantify results and if the results are possible given available resources.
Here's an example of a clear and measurable goal for organizations looking to reskill and upskill their employees:
In order to achieve our goal of increasing the AI literacy skills of our employees, we need to upskill and reskill 5000 employees by the end of 2025. We will do this by implementing a structured AI program consisting of online courses, hands-on workshops, mentorship from industry experts, and real-world AI project applications.
4) Align Content With Employee Needs
Upskilling and reskilling programs should help employees build specific skills that will lead to better performance and business outcomes. Say a marketing agency identifies a new customer relationship management software that would streamline repetitive tasks and free up marketers to do more strategic work. Leaders might recommend a course for these professionals to learn how to use the new software.
In this case, the course helps the business save time and money while also appealing to the interests, needs, and skills of marketing professionals. The latter advantage is especially important as 91% of employees want personalized training that's relevant to their position.
5) Use Online Learning Platforms
Online learning platforms help organizations easily and effectively develop the skills of their employees. They do this by automatically creating custom learning paths, providing a diverse content library and robust content authoring tools, enabling mobile and offline learning, and offering detailed learning analytics so organizations can track employee progress.
Leaders can choose from a broad range of online learning platforms. However, they should remember to select the best platform based on company goals and employee needs. For instance, Steve Boucher, the former vice president of talent development at Mastercard, said in an IBS Intelligence interview that Mastercard chose to partner with a specific online learning platform because the platform aligned with the company's goal of connecting employees to meaningful content and experiences.
6) Measure Progress
Training employees can be expensive. In fact, Training Magazine reports that U.S. training expenditure for 2024 reached $98 billion. Given the cost of upskilling and reskilling, it's only right that organizations track how their upskilling and reskilling investment is impacting employee performance and business outcomes. To do this, organizations should pay attention to the following items:
- Employee productivity
For example, a financial services company trains employees on data analytics for risk assessment and tracks a reduction in time to assess and approve loan applications. - Resource usage
For example, supervisors at a clothing store train employees on inventory management software and measure how often employees use the system. - Skill development
For example, managers at a hospital teach workers how to use advanced patient diagnosis tools. They track the development of new diagnostic skills by comparing employees' diagnostic accuracy before and after training on the tools. - Revenue growth
For example, an organization's marketing department incorporates AI into its strategy. Leaders track revenue growth by comparing the number of qualified leads that have converted into paying customers pre and post-AI implementation.
7) Encourage Continuous Learning
Embracing continuous learning has several benefits including:
- Enhancing company competitiveness.
- Helping companies achieve their goals.
- Fostering a culture of innovation.
- Making employees feel valued.
Organizations can encourage continuous learning by embedding it into the company culture. For instance, employees and managers should regularly discuss upskilling in the workplace.
Leaders should also give workers sufficient time in their workday to develop skills. This way, employees won't feel pressured to learn on their own time and resent the organization.
Future-Proof Your Organization By Investing In Upskilling And Reskilling Programs For Employees
Both upskilling and reskilling are necessary for organizations to build a workforce that is prepared for an increasingly digital, AI-dominated labor market. While upskilling involves training employees to build upon workers' existing skills, reskilling encompasses teaching employees new skills so they can transition into a different industry or role.
Though investing in upskilling and reskilling programs offer several benefits, leaders must take a strategic approach to program implementation. Ensure the company is ready to reskill, identify skills gaps, and use learning platforms to create tailored content for—and track the progress of—employees. Most importantly, commit to continuous learning. After all, the only constant in business, as in life, is change.
