Reskilling vs. Hiring: Discover Your Next Talent Solution
It is estimated that more than 120 million workers in the world’s 12 largest economies may need reskilling as a result of
intelligent, AI-enabled automations. This paired with the growing number of tech jobs, which is estimated to grow 22 percent by 2029, is forcing organizations across the world to get creative when trying to meet talent demands.
However, meeting such talent demands can be costly and even risky when bringing on external hires. According to SHRM, the average 42 days needed to fill a position costs over $4,000 per hire. When you’re working with software engineers, that number drastically increases and can reach up to $50,000 in instances where you work with contractors or experience productivity loss. Other factors to consider when hiring are the intangibles that make a candidate a good culture fit.
Considering that up to 20 percent of new hires resign within their first 45 days of employment, hiring externally can be risky, resulting in a loss of time and money. Reasons for this resignation could be unmet expectations, lack of clarity about the role, or simply not meshing well with your company’s culture.
This list breaks down the benefits of external hiring methods and reskilling solutions by focusing on cost, time and the impact of culture involved when filling valuable tech roles.
Know your options and create your workforce solution.
Reskilling
- The average time it takes to reskill a position is 6 months or less.
- Reskilled employees’ onboarding times are cut drastically by crossboarding.
- The average cost for reskilling a position is $24,800.
- Reskilling can be a diversity driver.
- Reskilling can increase employee retention by up to two times.
- Reskilled employees are already a culture fit.
External Hiring
- The average time it takes to fill a position is 42 days.
- It takes a minimum of 4-8 weeks before a new hire is fully trained and productive in a new role.
- The average cost for filling a software engineer position is $50,000.
- External hiring can be a diversity driver.
- External hiring may introduce new ways of thinking, as opposed to a veteran employee.
When looking at a hiring solution, consider how it fits within your company culture. Consider how the solution aligns with internal goals related to employee retention, satisfaction and loyalty. If one of your talent initiatives is to improve employee retention, then reskilling can be a powerful tool to keep your employees motivated and engaged at work.
If you’re looking to expand creative thinking and ignite new projects, external hiring might be the preferred approach. New hires bring their unique backgrounds and fresh perspectives to their new employers.
Identify the right hiring solution for your organization.
Ultimately, choosing a suitable hiring solution depends on your company’s unique needs. Below are some questions to consider when evaluating reskilling vs. external hiring initiatives for your organization:
- What is your hiring budget?
- How much time do you have to fill the role?
- How many roles are you looking to fill?
- Does one solution work better or would a combination prove more valuable?
- Which employees are the best fit for a potential reskilling solution?
Keep in mind that there isn’t a one size fits all hiring or reskilling solution. Sometimes, the best solution for your company is a combination of both external hiring and reskilling. Weigh your options and determine which is the best-fit solution for your organization.
Tech Elevator’s reskilling team is comprised of experts in the field and is here to help guide and evaluate your talent initiatives.
Start exploring new talent solutions and talk with our team today.
