3 Ways Reskilling Adds Value to Your Workforce Development
The past two years have been a challenge for everyone, organizations and individuals alike. The mass exodus of employees and company-wide layoffs, combined with the lingering impacts of the global pandemic, have forced companies to reevaluate their talent teams and work environments.
Today’s employees demand more flexibility than ever before, which is founded too. An SHRM report shows that employees are just as productive at home as they are in the office. So with remote work policies in place and fair compensation, why are companies still falling short when it comes to employee loyalty and retention?
A Glint study shows that having opportunities to learn and grow is now the number one factor that people say defines an exceptional work environment.
Employees want access to new opportunities and training programs that enhance skill sets and further their careers. This mindset can be attributed to the natural human desire to continue learning and evolving, but it’s also a side effect of the uncertain times we live in. A report from PwC revealed that 77% of employees are eager to learn new skills or completely retrain, but 39% worry their jobs will be obsolete within five years.
Unfortunately, companies are behind in offering learning and development opportunities. Only one in five employees see the opportunity for internal mobility in their organization.
Luckily there is a solution that can set your company on the right path toward talent retention, while also reaping the benefits of accelerated productivity gains and cost savings – reskilling.
1. How Reskilling Improves Retention and Employee Satisfaction
Reskilling instills a culture of learning within your organization, automatically making your company more attractive for current and future employees.
A study by PwC reports that 93% of CEOs who introduce upskilling programs see increased productivity, an improvement in talent acquisition and retention, and a more resilient workforce. The report continues to explain how ‘increases in automation, changes in demographics and new regulations will make it much harder for organizations to attract and retain the skilled talent they need to keep pace with the speed of technological change.’
IBM’s approach to reskilling is a clear example of the impact reskilling can have on retention. After initiating their reskilling program, IBM found that employees given access to training were 42% more likely to stay with a company long-term.
The bottom line – companies will have to grow their future workforces.
2. How Reskilling Increases Productivity
Reskilled individuals are proven to be more productive and be more engaged at work.
Employee disengagement is endemic and costly and results in poor quality of work, decreased customer service and revenue loss. Learning and development programs also retain social capital in organizations by minimizing the risk of new employees not connecting with their new coworkers.
Beyond that, there are measurable results that come from reskilling. PwC found their reskilled employees have been able to leverage their newfound skills to build over 6,400 automations, visualizations and bots and have automated more than 6.5 million hours of work.
3. How Reskilling Reduces Hiring Costs
The average cost of hiring a new software engineer when working with a recruiting agency is $32,000 and can cost as much as $60,000. The average cost of reskilling an individual? $24,000.
Beyond the upfront cost of hiring, there are costs associated with the risk of turnover from new hires. Whether voluntary or involuntary, some studies calculate that when a company must replace a salaried employee, it costs six to nine months’ salary on average. With the average software engineer salary of $88,500, hiring and losing a new developer can cost up to $66,000.
Take the next step. Reskill your workforce.
Reach out to our Enterprise Team and learn more about how Tech Elevator’s Reskilling Program can advise and partner with your organization to develop your workforce of the future in a way that’s best for your company and growing teams.
Written by Meredith Hendershott, Tech Elevator’s Director of Enterprise Account Management and Delivery