Skills that were highly effective just a few years ago are now insufficient to meet market demands—no sugarcoating this. As remote work becomes more common worldwide, employees must be skilled in using social media, online collaboration platforms, AI, etc.
This leaves organisations with two options. They can hire new talent, which is not a cost-effective option, or focus on employee upskilling. The latter is better as it allows organisations to retain top talent and reduce the need to hire an additional workforce.
The question stands; how to upskill employees? The answer lies in our detailed guide.
What is upskilling? It’s important to know the meaning to avoid confusing it with reskilling. Upskilling means improving or expanding skills in a current job or field. For example, learning new techniques or tools for your existing role is upskilling. On the other hand, reskilling involves learning new skills for a different job or industry.
Upskilling programmes benefit organisations and employees.
Studies show that 70% of employees would consider leaving for a company that invests in their development. Employees today are eager for growth opportunities. When companies prioritise skill-building and career advancement, they are more likely to stay and perform well. Offering upskilling programmes and clear career paths is important to retaining talent in the long run.
Upskilling employees equips them with the right skills to work more efficiently and effectively, thus increasing their productivity. They reduce errors and optimise their work, leading to more value-driven results for the company.
Upskilling helps organisations reduce employee turnover. Upskilled workers are more likely to remain with the company, which lowers costs and retains valuable knowledge. The average cost of hiring a new employee is around $4,700. Some experts estimate the total cost could be 3-4 times the employee's annual salary.
A strong upskilling strategy encourages ongoing development, making companies more skilled, innovative, and prepared for future challenges. These organisations stay competitive by consistently improving their workforce's abilities.
Companies focused on employee development and upskilling improve their reputation as an attractive employer. This positive image benefits the brand, drawing in customers and investors. Job seekers, especially Gen Z and Millennials, prioritise companies that offer learning opportunities. A strong reputation for training programmes gives businesses an advantage in attracting top talent.
Upskilling helps employees close skill gaps, making them more effective in their roles and ready for leadership positions. Providing the necessary knowledge and skills allows them to grow within the company and develop long-term career potential.
Skills in data science, machine learning, and AI are vital for professionals in finance, healthcare, entertainment and other industries.
Corporate upskilling programmes help employees develop these skills, which improves their ability to analyse data and make smart decisions, ensuring they stay relevant in a technology-driven job market.
Employee satisfaction directly affects customer satisfaction. When employees have the right skills, they perform well, build customer trust, and advance in their careers. Great performance leads to recognition, improving job satisfaction and overall well-being.
Employees with the right skills can confidently handle challenges. Positive feedback from managers and customers boosts their self-esteem and motivates them to work harder.
The skills gap is a major challenge in almost every business sector. But tech-related industries like cybersecurity, big data, computer technology, machine learning, and cloud migration are among the top 10 industries suffering from skills gap issues.
Here’s how to identify them efficiently.
Start by conducting a skills gap analysis at individual and organisational levels. At the individual level, compare the skills required for a specific job with the employee's current skills.
For organisational-level analysis, assess whether your team has the right skills for upcoming projects. This helps you determine whether you need to hire new employees or focus on internal training.
HR can start the analysis by meeting with managers to explain the process. In some cases, hiring an external consultant for an unbiased evaluation might be helpful, allowing staff to focus on other tasks.
To fill skill gaps effectively, identify the most important skills for your company. Ask yourself, what do we value as a company? What do our employees need to succeed now and in the future?
Review job descriptions, business goals, and company values to determine necessary skills. Consider surveying your employees for insights on missing skills, ensuring they feel included in the company's growth.
You can prioritise skills using a simple rating system, such as a scale from 1 to 5, where 1 is "needs improvement" and 5 is "expert."
Next, assess your employees' current skills through:
To track individual skills, create a skills spreadsheet for each role. For example, if a data analyst needs training in machine learning but is proficient in data visualisation, focus on developing their machine learning skills first.
On-the-job coaching can be an alternative to formal training, especially for new hires with limited experience.
After identifying skill gaps, it's time to provide training. Many companies invest in training programmes to develop employees' skills. Options include:
If training alone can’t close the skill gaps, you may need to hire new talent. Modify your hiring process to screen for the specific skills you need.
After identifying skills gaps, here are the next steps in developing an effective corporate upskilling programme framework.
A clear set of objectives is essential for any upskilling initiative. HR teams and business leaders must collaborate to identify the necessary skills. The programme's goals must align with the organisation's strategy to ensure success.
Executives like the CEO and CFO must understand how upskilling will benefit the company in terms of performance, innovation, and growth. Their support is critical for securing the necessary budget and resources.
Employees should have clear learning goals aligned with their roles to develop skills that are relevant and valuable to the business. Personalised paths offered by training platforms can help individuals target the specific skills needed for career advancement. Providing clear guidance and relevant content helps employees see how upskilling contributes to their growth and the company’s success.
Effective programmes must be customised to meet employees’ specific needs. Not every individual requires the same training.
For example, a salesperson might benefit from learning AI tools for drafting pitch emails, while an IT developer might need hands-on training in a new programming language.
This is what HBSC applied; the company leaders recognised the importance of ensuring their workforce had the right skills to address new challenges and drive innovation.
They assessed the existing skills within the organisation. HSBC gained insights into where to strengthen its workforce with skills intelligence tools. This approach led to a significant productivity improvement, unlocking 60,000 additional work hours.
Customised learning paths help workers develop the right skills and can also increase employee retention. When employees feel they are learning skills relevant to their work, they are more likely to stay with the company. In fact, surveys show that those who engage in activities are more likely to feel connected to their employers and find purpose in their roles.
People learn differently, so selecting the right training methods and formats is essential. Some employees prefer videos or articles, while others learn better through hands-on practice, especially for technical roles.
Offering training in various formats, including videos, interactive modules, and live workshops, ensures that learning is engaging and effective.
Accessibility is key. Not all employees work in an office, so it’s vital to use learning platforms that cater to online workers.
Learning platforms powered by artificial intelligence (AI) can automatically assess employees' skills, recommend relevant courses, and track their development over time. This technology helps HR teams and business leaders stay informed about the skills within the organisation, identify gaps, and make data-driven decisions.
Continuous support and feedback are crucial for effective upskilling. Employees need guidance on what skills to learn and how to apply them. Ideally, managers should offer regular feedback and help them set career goals aligned with the company’s needs.
Many managers lack the resources, time, or training to provide support effectively. In such cases, learning platforms with built-in AI tools can offer recommendations based on employees' performance and development goals.
In addition to AI-driven insights, managers need visibility into employees' progress to offer targeted support and identify when additional training or resources are needed.
Equipping managers with the right tools, like learning platforms and skill-tracking systems, is essential to fostering a culture of continuous improvement.
A study says company culture is the foundation of successful learning and development. A strong learning culture engages employees and supports upskilling. Executives and managers can discuss how it benefits careers and the business. Managers can encourage employees to set learning goals and consider their career growth.
However, it’s not enough to talk about the importance of learning. The right way to demonstrate a true commitment to upskilling is to:
Employees are more likely to engage in upskilling programmes when they see a clear connection between learning, business goals, and career benefits.
Evaluating an upskilling programme’s effectiveness is essential for improving results and ensuring alignment with business objectives. One simple way to measure progress is by monitoring training programme completion rates.
To fully assess the impact, businesses should evaluate how employees apply their new skills in daily tasks. Key performance indicators (KPIs) like productivity, employee performance reviews, and customer satisfaction scores provide insights into the programme’s effectiveness.
To measure the ROI of upskilling, consider both direct and indirect benefits:
Revenue Impact:
Direct Cost Savings:
Use this formula to calculate ROI.
ROI = (Financial Benefits - Programme Costs) / Programme Costs × 100
Include direct training costs, employee time, and productivity gains when calculating ROI.
Upskilling is an ongoing process. Businesses must encourage employees to view learning as a continuous part of their career journey.
Regular communication about the importance of learning and providing employees with time and resources for training is key. Encouraging managers to incorporate learning into daily work routines can help them develop new skills without feeling overwhelmed.
Offering incentives for employees who complete learning milestones or earn certifications can motivate continued learning. This might include bonuses, extra holiday days, or advancement opportunities.
Recognising and celebrating successes is essential for maintaining motivation and engagement. Acknowledging when employees achieve their learning goals builds enthusiasm for the upskilling programme. When they see their efforts lead to real business outcomes, they are more likely to stay engaged and motivated to continue learning.
Digital learning is transforming careers and organisational growth. Companies can provide flexible and tailored training through e-learning. This approach allows organisations to address skill gaps and stay aligned with industry advancements.
AI and data analytics are reshaping personalised learning. These technologies allow platforms to customise content based on user preferences and performance to increase engagement and completion rates.
Real-time feedback tools help adjust learning strategies for better outcomes. Organisations investing in data literacy and using analytics to guide training can build an environment where personalised learning thrives, leading to more skilled, engaged employees.
Mobile learning (m-learning) enhances employee engagement in training and development. It allows access to training materials anytime, anywhere, making learning more convenient and flexible. This approach promotes continuous learning, leading to higher job satisfaction and improved performance.
M-learning becomes more effective when combined with microlearning, which delivers content in small, focused segments. This method helps employees absorb information quickly and fits busy schedules, increasing retention rates.
Organisations should customise content to employees’ learning preferences to maximise mobile learning impact. Adding gamification, such as rewards for completing modules, can boost participation.
Virtual reality (VR) is revolutionising training by providing immersive, risk-free environments for practising complex skills. VR training can improve retention and performance by allowing employees to simulate real-world scenarios. For example, EDUKATE.AI can simulate a real industry environment for learners to practise their skills.
Organisations can create tailored VR programmes addressing specific skill gaps using frameworks like ADDIE. It’s an effective tool for enhancing employee proficiency, reducing errors, and improving performance.
Measuring success through technology is essential for organisations to stay competitive. Companies use data analytics to track performance, improve customer experiences and make informed decisions. Implementing frameworks like Objectives and Key Results (OKRs) helps set measurable goals and track progress.
Tools like CRM systems and KPIs allow businesses to monitor customer satisfaction and key metrics. Regularly reviewing these ensure they adapt to changing conditions and continue to grow. Embracing technology to measure success is crucial for long-term sustainability.
Marks & Spencer (M&S) launched the BEAM Academy to improve employees' digital and data skills in 2020. The following year, they partnered with Cambridge Spark to offer a Level 7 AI & Data Science apprenticeship. Over 350 employees have completed data apprenticeships, making M&S the largest provider of this programme in retail.
The apprenticeship was beneficial. Employees applied their new skills to develop machine learning models that optimise product pricing, improve stock replenishment, and reduce logistics costs.
Employees used machine learning to improve customer targeting for marketing campaigns, saving costs. Natural language processing (NLP) streamlined employee surveys, cutting delivery time by 60%.
The apprenticeship programme has improved business outcomes, efficiency, and cost savings at M&S. It has fostered a culture of continuous learning and innovation, strengthening M&S’s position as a leader in digital transformation in retail.
Seagate, a leader in data storage solutions, wanted to ensure its employees were well-trained in new technologies and improve talent redeployment within the company.
During the COVID-19 pandemic, Seagate focused on internal redeployments rather than layoffs. This allowed workers to use their full skill sets in different areas, helping the company adapt to future needs.
Upskilling and redeploying employees resulted in significant financial benefits. Seagate saved $13 million in hiring costs and $20 million by reducing termination costs. The company plans to continue this strategy for more mentorship opportunities, dynamic career planning, and flexible sourcing.
The upskilling programme helped Seagate save money and build stronger, versatile teams, positioning it well for the future.
Building a successful corporate upskilling programme requires clear goals, effective skills gap analysis, and tailored learning paths for employees.
Upskilling improves employee retention, productivity and job satisfaction while reducing turnover costs. It helps companies stay competitive by fostering a culture of continuous learning and innovation.
Using technology, like AI and mobile learning, enhances the programme’s effectiveness. Measuring ROI through key metrics ensures the impact aligns with business objectives. Upskilling is a long-term investment in employees’ growth and organisational success.