Benefits of upskilling employees
Company culture and identity are often sacrificed for the pursuit of skills from the outside. Businesses are attracting talent with larger salaries, which is creating a mercenary labour market.
For businesses trying to lean out expenditure, this doesn’t sit well against a background of rising operating costs and inflation. This unsustainable approach will only result in ballooning recruitment costs, further perpetuating the problem while still failing to plug skilled staff turnover rates. These so-called ‘talent wars’ are creating a highly competitive recruitment market for businesses. This is where upskilling is incredibly valuable.
One of the major benefits of enhancing the skills your current employees already have is the cost-saving that can be made.
The cost of rehiring is so much higher than the outlay for upskilling your existing teams. The job market is seeing such a huge upheaval with lots of vacancies, people changing careers and reevaluating jobs. This means employers and businesses need to remain agile and look carefully at their existing workforce.
Upskilling your employees can save your business money in so many different ways. For example, you may see employees leaving your business because they feel they’re not benefitting from up-to-date training. The cost of rehiring replacements for those employees is much greater than investing in training them in the first place. As well as the cost-saving benefits, reskilled employees will be better able to leverage new or emerging technologies, which in turn will be cost-saving too.
By investing in training that really benefits your staff and business you can work towards building business growth as well as employee motivation. Find out more about our professional services and leadership and management apprenticeship programmes to help take your business to the next level.
This also has a knock-on effect of increasing staff commitment to an organisation that has invested in their own development. You’ll see a step change across your whole organisation, especially if you’re investing in training at all levels right through to leadership. Leaders themselves will be better able to manage and motivate staff, having learnt these soft skills through additional learning, such as apprenticeship programmes.
Boost company productivity and growth
There are obvious benefits to recruiting externally, such as acquiring new talented team members that can boost your business growth and productivity. They may bring with them different fields of experience, fresh ideas as well as give a boost to your business reputation, especially if they’re well-regarded in their industry.
However, with the drive towards digital transformation in many industries, simply recruiting from outside is probably not going to be enough to keep your workforce’s skills current and up to date. By reskilling, you can ensure your processes, agility and business efficiency are constantly updated and evolving.
Reskilling creates a positive feedback loop within your organisation too, which makes other team members feel more confident about their own ability to reskill. Reskilling is an opportunity to invest and improve the diversity of the workforce in underrepresented skills areas. For example, it’s important for employees to have appropriate levels of digital skills if as a business you’re investing in large-scale digital transformations.
According to the Financial Services Skills Commission, upskilling your workforce could also increase the global GDP by 3%. In addition, reskilling better prepares teams to deliver on their strategic objectives and therefore business growth and success.
Tap into existing talent
To avoid unnecessary and costly recruitment, speak to your existing employees. What do they want? What makes them tick? The talent already within your organisation is probably more willing to experiment than you think.
To preempt potentially losing them to another company in the future, work on a strategy to offer them new roles or directions within your company. Rather than handing out impressive job titles or promotions, find out how your employees connect to the purpose of your organisation. Find out what drives them and how this can be used to boost the company too.
There’s a trend for candidates in the current job market to want to work with a purpose in mind, as well as other benefits that the right job can bring. If an employee is choosing to work with a larger purpose they identify with, beyond salary and job title then how can this benefit your business? By reskilling current employees, you are keeping them invested in your business goals and purpose too.