The Ultimate Guide to Upskilling
Changing workplace demographics have created skills gaps across industries and organizations. McKinsey found that most companies, 87%, have identified existing skills gaps in their organizations or anticipate one in the next few years. So, what’s the solution? Some leaders think hiring, working with contractors, or restructuring may be the answer to skills gaps, especially as a significant amount of the workforce has retired in the last few years.
However, the consensus (53%) said building skills is the best and most useful solution for managing the skills gap in the immediate future.
In short: you need an upskilling strategy.
To fill skills gaps in their organizations, leaders must deploy skills-driven learning strategies that target industry-specific needs and improve upon workers’ existing skills. There are many ways to create an upskilling strategy as part of your learning and development program. Read on to learn more about upskilling and how to prioritize it within your organization.
What is upskilling?
Upskilling is the process of enhancing existing skills and learning new ones. Within the corporate learning and development world, upskilling is a strategic initiative to leverage existing talent and improve productivity and innovation at work. Upskilling training differs from traditional learning and development training in that it builds upon existing and established skills to enhance them and create new ones.
What are the benefits of upskilling?
The benefits of upskilling are numerous, from improved employee retention and engagement to increasing productivity and expanding the skills of the workforce. Ultimately, upskilling is beneficial to companies now because it helps reduce the impact of labor shortages and can keep employees engaged and effective in their roles.
Benefits of upskilling for employees
Upskilling is beneficial for employees because it offers:
- Opportunities to grow and advance in their careers without taking a new job or seeking outside education
- Improvement of workplace skills, which can lead to promotions
- Development of tech-centric skills (through digital transformation upskilling) that will be essential for the future of work
- The ability to explore new career pathways within the company and grow cross-departmental functionalities
Corporate upskilling is both useful and enjoyable for employees because it allows team members to explore skills and learn while they are at work. Additionally, upskilling training can help employees improve their communication at work, learn new strategies, and become more efficient, all of which impact their job satisfaction. These skills not only improve the flow of work but can also improve relationships at work, encourage collaboration, and prompt more innovative ideas, all factors that keep employees engaged.
Benefits of upskilling for companies
Companies benefit from organizational upskilling because it encourages growth within the workplace. First, the primary benefit is that, through upskilling courses, companies can develop a more productive workforce. Instead of the costly process of looking for talent, companies can get the most out of their existing resources by investing in team members who are already on staff.
Additional benefits of upskilling for companies include:
- Improved employee engagement and retention
- The development of cross-functional roles and competencies
- Better workplace communication and collaboration
The importance of upskilling
Upskilling is an important initiative not simply because it helps companies bridge gaps and create more robust teams but also because it will help move the needle forward in terms of innovation. The pace of innovation has only accelerated in the last handful of years. Think of the rapid digital transformation in 2020 and the fast rates of innovation and adoption that occurred in conjunction with it. Because of this, companies and individuals have needed to learn new skills to adopt technology and think innovatively.
Corporate upskilling is also important because a new set of needs has cropped up in the marketplace. Not only do companies need to address talent needs, but they also need to address larger business needs that are associated with new marketplaces. For example, substantial investments have been made in sustainability and environmental impact initiatives which require a whole new set of skills and learning. For companies to meet sustainability goals and drive innovation in this still-emerging marketplace, their teams must be equipped. Additionally, advancements like AI and machine learning, and the large language models that are the talk of the tech world, have created a new set of necessary skills almost overnight (for example, knowing how to prompt an AI tool is essential across industries). Upskilling helps companies and their team members be prepared to thrive in this new marketplace of ideas and innovations.
Advantages of upskilling
What makes upskilling unique and different from other corporate learning and development strategies is that it is anchored in skills. Many corporate programs are purely informational, like onboarding programs that acquaint employees with company processes or courses that outline a company’s products or services. Conversely, corporate upskilling ties each lesson to an actionable skill that team members can use in their everyday work. After completing an upskilling course or course program, the team member walks away with a new strategy or technique to apply to their work.
Disadvantages of upskilling
It’d be easy to say there are no disadvantages to upskilling because, on paper, the benefits of upskilling are so vast and far-reaching that it’s hard to see much else. But there is one disadvantage to upskilling, and it is this: once you start, you cannot stop. Upskilling is designed to be an ongoing process. Launching an upskilling program is a commitment to a long-term organizational upskilling initiative. This is because, by nature, upskilling courses are meant to build one on top of the other.
Now, markets and business landscapes factor in greatly here and will affect the timeline of necessary upskilling. Because corporate upskilling is meant to serve a specific need at an appropriate time, companies will not always need to provide a stream of new courses. When skills gaps are filled, this should hold for some time (though, with the understanding that those skills will eventually need to be added to or improved upon).
Upskilling training will require companies to keep track of skills within their organizations and learn how those skills fade or lose effectiveness over time. Corporate and development training analysis will be an essential part of an effective upskilling program.
How to implement upskilling now
Launch your upskilling program today, don’t wait. It’s a straightforward and proven way to increase your team’s skills and become more effective in your marketplace. Here are four upskilling strategies to implement now.
Create digital transformation upskilling courses.
Digital transformation—and the skills needed to make the most of it—is on the minds of executives and employees alike. Provide upskilling courses that train your team members on new technologies and systems relevant to their work.
Use self-assessments to keep learners on track with skills development.
Learners can and should participate in their development by identifying which skills they lack and how they can improve. Digital self-assessments are an essential tool. If you use an LMS platform for upskilling, you can easily manage assessments and compare them with training data to get a full picture of skills development.
Leverage live meetings to develop skills in a collaborative environment.
Upskilling training doesn’t have to be limited to asynchronous courses that team members take on their own time. One-on-one coaching sessions enable team members to learn from their peers, adopt new skills, and practice them in a controlled environment through collaborative learning
Make upskilling part of your company’s culture.
Upskilling training is a long-term strategy that can improve your organization’s effectiveness, so make it part of your culture. Create opportunities for learning during the work week and encourage your team to identify skills gaps in their own work.
Corporate upskilling can transform your company’s operations and encourage growth while boosting retention and engagement. If you want to launch an upskilling program shortly, you need technology to support it. Let us help. Contact us today for a free demo of the ExpertusONE LMS for upskilling.
