Learning and Development: Why Reskilling Matters for the Companies of Tomorrow
According to Crunchbase News data, more than 58,000 workers in U.S.-based tech companies have been laid off in 2023 so far. While these layoffs are continuing, there are solutions like reskilling that organizations can explore to keep their loyal employees all while investing in valuable tech infrastructure.
Even as the country prepares for yet another recession, the U.S. Bureau of Labor Statistics still expects 26 percent growth(roughly 371,000 jobs) in the software developer profession over the next 10 years.
Despite the recent trend of layoffs in tech, companies in the insurance, finance, and manufacturing industries are still expanding their digital presence rapidly and need to hire software developers to keep up with accelerated digitization and automation. Every company is quickly becoming a “tech company” to stay relevant and future-proof their workforce.
This is why reskilling and upskilling programs have never been more important. Expanding and digitizing industries are starving for diverse, tech talent capable of implementing the latest software solutions. Even simply modernizing established industries is proving to be a challenge without the workforce to implement these changes. Unfortunately though, there isn’t enough talent to fill the ever-growing, software developer roles and traditional talent pipelines (i.e. university graduates) aren’t producing the output necessary.
Reskilling and upskilling current employees along with utilizing traditional talent pipelines are giving companies a fighting chance when it comes to filling open tech roles and combating the growing skills gaps. The companies of tomorrow will be defined by their ability to not only adapt their workforces, but grow them from within.
By establishing reskilling and upskilling programs in their learning and development strategies, companies will future-proof their workforces in scalable and sustainable ways. Continue reading as we take a deep dive into the aspects of reskilling that make it vital for growing and digitizing industries.
Reskilling improves employee retention.
According to IBM, employees are 42 percent more likely to stay with a company long term if they receive some form of training. Along with providing training, employees at companies with internal mobility stay nearly two times longer than those without. Reskilling programs are the pathway to both; employees receive skills-based training for in-demand tech roles while opening possibilities for new career paths with upward mobility.
Reskilling programs also give employees and employers more options when facing job obsolescence. With the introduction of artificial intelligence (AI), 375 million jobs are at risk of becoming obsolete within the next decade. With reskilling programs, companies can retain and retrain their loyal workforce by helping them develop skills for new roles.
Rather than lose your workforce to job obsolescence, add reskilling and upskilling to your learning and development strategy to keep your employees and reallocate them to tech teams desperate for new talent.
Reskilling is a cost-effective talent solution.
As entire industries continue to digitize their workforces, they face tech talent shortages that plagued the tech industry for the past decade. There simply isn’t enough tech talent output and traditional talent pipelines are yielding insufficient results. With a lack of talent, the time it takes to fill open tech positions is a significant pain point for some companies.
Reskilling and upskilling programs have become cost-effective solutions for the tech talent shortage. These programs introduce talent into the market faster and cost less than traditional hiring practices. The average cost of reskilling an individual is $24,800, while the average cost of recruiting a software developer is $50,000. Not only is it more cost-effective, but companies are saving time by cross-boarding program graduates instead of sending them through standard onboarding.
Reskilling drives workforce diversity, equity and inclusion.
A survey conducted by Stack Overflow found that only 23.1 percent of the tech industry is made of female, Black or Latinx individuals. The same survey showed that less than 10 percent of those surveyed identify as LGBTQ+. It is safe to say that the tech industry is desperate for more diverse talent. Reskilling increases accessibility to technology training, opening doors for employees.
Reskilling and upskilling are powerful drivers to increase workforce diversity, equity and inclusion. As companies enact their DEI initiatives, there is a chance for reskilling programs to supplement those initiatives. By targeting historically underrepresented groups for reskilling programs, these groups are offered the opportunity to gain new skills and become the technical talent that companies need.
Explore how to find success with reskilling.
There are many reasons why companies are adding reskilling and upskilling programs to their learning and development strategies and why they are vital for the companies of tomorrow. Industries starved for talent can improve employee retention, implement a cost-effective talent solution and drive diversity initiatives.
By working with an experienced reskilling provider you will learn how to establish beneficial learning and development systems for your current and future workforce at a time when it’s needed most.
Our team is comprised of experts in the space when it comes to implementing scalable reskilling solutions. With over 3,000 graduates and industry-leading outcomes, Tech Elevator is the solution that will help your company develop its workforce of the future.