Skills gaps will increase as in-demand skills change in the next five years.
77% of all employees will need significant reskillingâ¯and upskilling by 2026 to bridge this gap.
The world is experiencing a talent crisis.
By 2030, approximately 1 billion jobs, or about a third of all jobs worldwide, are predicted to see severe digital disruption.
The signs of a looming skills disruption have been quite evident for a while now.
Technology innovations, evolving workforce models, and a dynamic corporate environment have disrupted the nature of work.
With continuous advances in AI and automation, HR leaders are staring at a markedly different talent ecosystem in ten years. The scale & frequency of these disruptions will only increase with time, resulting in the extinction of some job roles and the development of new positions that need an understanding of new technologies.
All these factors make Reskilling an unavoidable option for businesses seeking to develop a future-ready workforce.
A meta-analysis by Draup reveals that:
- Reskilling reducesâ¯hiringâ¯costs by up to 50% per employee.
- Over 60% of Learning and Development teams cite upskilling and reskilling as their top priority.
- Internal reskilling increase employee satisfaction rates by over 80%.
Reskilling and its Benefits Over New Hire
Reskilling existing staff via training rather than replacing them has considerable benefits for businesses across the board. Some of these are mentioned below:
- Reduces Cost To The Company
A company can save money by providing additional training to people who are already familiar with its goals, operations, and customers rather than spending money on hiring new employees. They can also cut costs connected with hiring new employees via reskilling.
Cost savings can be maximized in:
- Recruitment: Which includes posting to employment sites, employing recruiters, and screening procedures
- Background checks: Most businesses do at least one sort of background check to determine who they are hiring. Reskilling internal talent helps cut these expenses.
- Onboarding: Reskilling reduces onboarding expenses such as IT configuration and orientation processes.
By reskilling existing workers, businesses can avoid incurring these additional costs while still acquiring the necessary expertise for sustained development and success.
- Minimizes Employeeâ¯Turnover
Losing an employee can cost a company 1.5-2 times the employee’s salary. When a company helps its employees learn new skills they are more likely to stay with the company. They retain the best employees, boost team morale, and increases the quality of the talent pool, which keeps the company competitive.
- Improves Employee Satisfaction
Employees that feel appreciated and happy with their job are more engaged in the company. They tend to perform better, which increases client happiness. These employees thenâ¯deliver superior customer service and pay attention to detail. Their training keepsâ¯them up-to-date withâ¯industry trends and solutions, allowing them to make more informed suggestions to customers.
- Reduces Training Expenses
Reskilling an existing employee is 23% cheaper than fresh hiring.â¯
On-the-job training, in-house L&D processes, and other reskillingâ¯strategies help reduce training expenses during hiring downturns and even prevent skills gaps from creeping in during hiring freezes. Many companies provide in-house training that does not add any additional costs. With lower expenditures for training, seminars, tutorials, guest speakers, etc., the company can shift its focus as well as its budget to other important areas.
- Builds Resilience Against Future Disruptions
To build strategies for reskilling and upskilling, organizations must evaluate their existing situation. This helpsâ¯them findâ¯skill gapsâ¯and pinpoint improvement opportunities. This evaluation enables companies to establish resilience against potential disruptions and help plan for the future. This kind of foresight may keepâ¯you ahead of your competitors in the future.
Draup – An AI-Driven Reskilling Tool
Implementing reskilling effectively throughout a business is a daunting challenge for people management teams. There needs to be more understanding throughout the ecosystem on how to map individuals to their appropriate positions, identify disrupted roles, and transition employees from these disrupted roles as quickly as feasible.
Draup delivers its talent customers unique role-level and skill-level insights not available on any other platform. This helps talent strategy teams build strategic location and role-wise workforce plans.
Draup’s powerful AI engine, applied to a database of over 750 million profiles, helpsâ¯HR leaders find & hire the right skills and implement cost-optimized AI-driven reskilling initiatives to transform their global workforces and become future-ready.