Inflation, economic headwinds, dynamic customer preferences, demand-supply gaps, and talent shortages are only a few challenges that organizations face in this rapidly changing world. These challenges have forced leaders to change their approaches toward business to mitigate and optimize operational costs. For instance, the acceleration of digital transformation and availing global staffing services are some of the approaches highly acknowledged by businesses today. An American Staffing Association report suggests that three million temporary and contract employees work for America’s staffing companies during an average week. The report adds that staffing companies in the US hire 16 million temporary and contract employees during a year.
While working with a global staffing company can benefit you on a larger scale, organizations themselves must take steps to cope with a disrupted job market. All the help and assistance of the world is inadequate until one helps themselves. Thus, organizations must invest time and resources in upskilling their workforce.
Upskilling refers to the practice of providing the existing employees or workforce the opportunity to learn new skills and advance their capabilities. While it can be short-term or long-term, upskilling allows the employees to gain new knowledge and acquire relevant competencies to excel in their current or desired line of work. It improves the skillsets of employees and assists them to advance in their jobs through additional training, employee training programs, mentoring, or peer coaching.
Upskilling allows employees to perform tasks more effectively and proactively. It is one of the best investments employers can make to augment the skills of their current employees and workforce.
In the last couple of years, businesses have been struggling to close the skill gaps and manage costs effectively. Technology is changing rapidly, and the demand for digital skills has surged significantly. For instance, an analysis by the National Skills Coalition (NSC) (in partnership with the Federal Reserve Bank of Atlanta) finds that 92% of jobs analyzed in the US labor market require digital skills. The analysis indicated a strong demand for digital skills across every industry and in all occupations – including entry-level and frontline positions. It has eventually increased the importance of upskilling
Amidst economic uncertainties and labor shortages, organizations need to reimagine their talent development strategies. Upskilling is one of the best ways to mitigate skill shortage challenges and save money. Various studies back that upskilling the existing workforce and training employees in new capabilities is more cost-effective than hiring new resources.
Here are some other aspects that assert the importance of upskilling in today’s business landscapes.
Today, the demand for employees proficient in digitally driven technologies like data science, business analysis, programming, data visualization, and digital marketing is high and will continue to remain so in the years ahead. Upskilling the current workforce can help organizations adapt to digitally governed changes better and faster. Moreover, it imparts benefits that make it highly relevant today.
Before discussing the benefits of upskilling, it is important to mention that training and upskilling employees is expensive and time-consuming. However, it is an investment worth making as it can deliver high returns on investments (ROIs) and cost-benefits in the long run. For instance, nearly 66% of employers see a return on investments within a year through upskilling and reskilling.
Here are some primary benefits of upskilling the workforce.
While enabling employee growth and ensuring personal and professional development, upskilling helps in building an adaptable, flexible, and agile workforce. It allows your organization to level up internally and prepares you for new challenges.
For all your other requirements for perm placement, technical staffing, diverse talent, and recruiting services, you can always consider partnering with one of the largest IT staffing firms in the US – Pyramid Consulting, Inc.