Disruptions—economic, technology, and social—are no longer once-in-a-lifetime events. There is a ‘new normal’ every day and businesses must sustain, operate, and succeed in such environments. The recent pandemic has reinforced the need for companies to invest in strengthening their human capital—their people resources. Empowered by best-in-class technology, it was people who ensured that businesses delivered seamlessly, every day 24×7. Companies needed to put their employees’ interests at the forefront. Employee retention was now an imperative to ensure business continuity.

If one were to ask CHROs across the world: What can companies do to retain talent? The answers could be many—from increased compensation to career growth to incentives to work-life balance. Yes, these aspects do increase employee retention, but for an employee to stay he needs to be constantly challenged and given newer opportunities for growth. And this is where upskilling plays a vital role.

What is upskilling?

In its Upskilling For Shared Prosperity report, PwC refers to upskilling as the expansion of people’s capabilities and employability so they can fully participate in a rapidly changing economy. Upskilling, as the report explains, does not refer to just equipping a person with the basic skills to perform a required job role.

It refers to: “developing attitudes and aspirations that will equip people with the skills to continually adapt to and take part in the changing world of work, resulting in healthier societies, supported by healthier economies. This includes acquiring relevant knowledge for new types of jobs, through digital upskilling for example…”

https://www.pwc.com/gx/en/issues/upskilling/shared-prosperity/upskilling_for_shared_prosperity_final.pdf

Upskilling and reskilling employees have the potential to impact a businesses’ revenue. How?

Firstly, it lowers employee acquisition costs by offering newer growth opportunities to employees. As per the The World Economic Forum’s Future of the Jobs Report 2020: Online learning and training is on the rise…There has been a four-fold increase in the numbers of individuals seeking out opportunities for learning online through their own initiative, a five-fold increase in employer provision of online learning opportunities to their workers and a nine-fold enrolment increase for learners accessing online learning through government programmes… Those who are unemployed have placed greater emphasis on learning digital skills such as data analysis, computer science and information technology.

Secondly, a well-skilled employee is motivated to perform and innovate better. He/She delivers superior customer service. As a result, customer acquisition and retention costs too come down.

The benefits of upskilling are many. CHROs would do well to draw a comprehensive upskilling plan. And this is where online, self-paced learning programmes that offer relevant technology skills can help companies upskill their employees.