COVID-19 has led the labor market to shift quicker than planned. In a report by the Future of Jobs 2020, what was once thought to be the “future of work” is already here, and that by 2025, 85 million jobs in medium and big firms across 26 economies and 15 industries may be lost due to automation and a new division of labor between people and robots.
While data entry, administrative support, and accounting are becoming less in demand as the workplace becomes more automated and digital, 97 million new jobs such as managing, counseling, decision-making, and engaging will be created. Also in high demand will be workers for green economy employment, occupations at the vanguard of the data and artificial intelligence economy. New professions in cloud computing, engineering, and product development will also be highly abundant.
According to Saadia Zahidi, World Economic Forum Managing Director, aggressive automation and the COVID-19 recession have exacerbated inequities across labor markets and reversed employment gains made since the global financial crisis in 2007-2008.
“It’s a two-pronged disturbance that adds to the difficulties that workers are already facing,” she says. “The window of opportunity for proactive change management is rapidly closing. Businesses, governments, and employees must prepare to collaborate rapidly to execute a new global workforce strategy.”
Because of this huge transformation, reskilling, or the process of learning new skills with the purpose of finding a new job or professional path, is needed for nearly half of those expected to stay in their jobs.
But how is reskilling important?
Reduces expense on training and hiring
Companies spend more money on hiring and training new employees, even more so when hunting for specialized expertise. According to research, replacing a paid employee costs a company six to nine months’ income on average. For instance a manager earning $50,000 a year can have recruiting and training costs at $20,000 to $35,000.
Maintains company knowledge while reducing time to market
Your present employees are already familiar with how the firm operates and what their responsibilities are. This is vital information that might take months or years to gather when an employee quits. By reskilling, a company may maintain these skilled personnel so they can pass on their expertise to less experienced employees.
This also means that the company’s time to market – which refers to the time it takes a company to create a product – has improved dramatically. Tasks are accomplished more quickly because individuals with excellent company knowledge may work without requiring as much support. Thus, a company has higher-quality items, quicker manufacturing, and bigger earnings.
Retains a company’s best employees
Talented employees aren’t always easy to come by, and it’s far better to retain them than to lose them to a competitor. Reskilling top employees keeps them in the business and simply increases their worth to the company.
Aids in internal mobility
Because of the pandemic, internal mobility – or the movement of individuals between jobs inside a company – and skills matching have swiftly become essential workforce development demands. Reskilling fits into these business goals by maximizing a current workforce with engagement and time and cost savings. With reskilling, employee retention and engagement become higher for career advancement.
Boosts employee motivation and decreases turnover
Reskilling employees helps in analyzing and developing the strengths of employees to achieve optimum performance. It’s not only about advancing their careers; it also ensures that employees have a sense of job stability. Employees with new abilities have the possibility to work in other jobs if their existing employment is abolished.
Reskilling then will make them feel more valued and have a higher regard for their employment and the organization they work for. They will feel more motivated and competent to do their responsibilities.
Enhances corporate reputation
Reskilling not only enhances existing workers’ perceptions of the company, but it also improves its reputation in the eyes of friends, family, future employees, and society at large. A company’s reputation might be affected by large firings, but reskilling employees demonstrates that the company cares about the individuals who work for it.
More versatile personnel
Employees who increase their skill set become more adaptable in their responsibilities at work, gaining valuable insights into various sectors of the company. As they have a better understanding of the many components of its operation, these individuals may become some of the company’s finest people.
One of the tell tale signs that employees may need reskilling is when their roles are abolished. When a company wants to keep valuable employees but can’t keep them in their current jobs, it’s time to reskill them. So if you want to learn more about reskilling and how it can help support your organization today,, check out Dale Carnegie of Singapore’s professional training courses for available public programs for your team. You may also get in touch with us to discuss the specific skills development solutions you and your team need today.