In today’s global landscape, the challenge of retraining employees is an issue that transcends organizational boundaries and industry sectors. Back in 2017, McKinsey estimated that by 2030, a staggering 375 million workers, equating to 14 percent of the global workforce, would need to transition to new roles or acquire fresh skills. The primary reasons behind this transformation is the ascent of automation and artificial intelligence. Therefore, it’s imperative to explore what reskilling entails, how to embark on this journey, and the pivotal role that leadership plays in the process.

Reskilling and Upskilling: Understanding the Difference

The terms “reskilling” and “upskilling” are often used interchangeably, but they refer to distinct concepts. Reskilling involves training individuals in new skills, enabling them to undertake different roles or responsibilities. Conversely, upskilling equips individuals with enhanced skills for their current roles, making them more adept at their tasks and ready to adapt to significant changes in their existing positions. Both reskilling and upskilling share a common objective: elevating skill levels, narrowing skills gaps, and preparing workforces for innovation and change.

A survey conducted by McKinsey unveiled that organizations typically implement reskilling and upskilling initiatives to adapt to shifts in their business models or strategies or to respond to disruptions caused by technological advancements. However, the same survey revealed that fewer than half of the organizations surveyed had a clear strategy for bridging these emerging skills gaps.

McKinsey further indicated that industries such as finance, telecommunications, and technology are more likely to confront disruptions and skills gaps. Nevertheless, this predicament transcends industry boundaries, as technology is reshaping the fundamental operations of businesses across the board. Failure to facilitate employee learning and skills improvement can result in a loss of competitive edge.

Today’s leaders require a diverse set of core competencies to navigate an ever-evolving, economically and culturally diverse, and persistently challenging environment. To address these demands, businesses and their Learning and Development teams must first identify the competencies that their leaders require through skills-gap analyses. Subsequently, they should implement a comprehensive leadership program to nurture and sustain these crucial competencies.

E-learning serves as a valuable tool to bridge the skills gap. Extensive training catalogs and digital assets accessible through Learning Management Systems (LMS) or Learning Experience Platforms (LXP) offer expert insights in a manner that captivates modern learners. These resources are available 24/7 across various devices, providing a flexible means to deliver essential business and soft skills to aspiring and current leaders.

Key Core Competencies for Reskilling and Upskilling

To delve deeper into the essential core competencies that leaders need, let’s explore their significance and practical applications.

Reskilling and Upskilling in Action

Retraining employees enables organizations to build resilience and agility, equipping them to adapt to and thrive amidst transformative changes. For example, when Amazon’s warehouse workers faced potential job displacement due to automation, the company responded with a substantial $700 million reskilling program. This initiative empowered these workers with the technical skills required to assume new roles in IT support and software engineering.

Similarly, AT&T recognized that only about half of its employees possessed the STEM (Science, Technology, Engineering, and Mathematics) skills necessary for the company’s progression. Recognizing the scarcity of individuals with these requisite skills, AT&T chose to reinvest in its workforce. The company implemented development paths for reskilling, fostering trust and demonstrating confidence in its existing employees.

The COVID-19 pandemic reshaped the healthcare sector, transforming the way doctors deliver care. Just a couple of years ago, only 1 percent of all UK general practitioner (GP) appointments were conducted via video or phone. During the height of the pandemic, this figure skyrocketed to 100 percent, with doctors rapidly upskilling to effectively diagnose patients remotely.

Similarly, banks realized that customer interactions could no longer be exclusively in-person during the pandemic. As a result, they upskilled their employees to cultivate empathy skills, enabling customers to engage with their services and products entirely online.

Steps to Retraining

Understanding the benefits of retraining is essential, but what steps should leaders take to initiate the process of reskilling and upskilling their employees?

1. Identify Skills Gaps
To embark on this journey, leaders need a clear understanding of the evolving business landscape. Consequently, they should assess the skills necessary to thrive in this dynamic environment. This begins with a comprehensive skills inventory, evaluating the skills that current employees possess. A skills-gap analysis is essential to establish the target and objectives for the retraining program. This analysis also facilitates tailored training to meet specific needs, recognizing that some individuals may require minimal upskilling, while others may need complete reskilling to prepare for new roles.

2. Implement Targeted Learning

The analysis conducted should guide leaders in determining the extent of the skills gap that needs to be addressed. It’s crucial to tailor retraining to align with each individual’s learning goals and requirements. This approach capitalizes on existing skill sets, allowing for their enhancement.

Creating clear learning and development paths for employees, outlining their current standing and desired growth, adds context to the training, fostering relevance, promoting engagement, and building trust and resilience among individuals.

3. Provide Diverse Learning Resources and Strategies

Reskilling and upskilling are ongoing endeavors that cannot be effectively addressed with a single, isolated training course. E-learning courses offer dynamic, multimedia features, engaging learners and enabling them to learn at their own pace when swift retraining and adaptability are required. Microlearning, a strategy that offers just-in-time information to achieve specific objectives and serves as a constantly accessible resource for reinforcing and practicing learning, plays a vital role.

The digital revolution has enabled the storage and curation of a wide array of learning assets in various formats using LMSs or LXPs. These assets are accessible on a range of devices, including mobile, ensuring that employees have continuous learning support, thereby integrating learning into their workflow, enhancing its relevance.

Collaborative and social learning, such as job-shadowing, sharing of learning assets via a learning platform, and other peer-to-peer interactions, take place within the context of work. This approach enhances retention and the practical application of acquired knowledge and skills.

4. Prioritize Leadership Development

Retraining requires active support and commitment from senior leadership. Leaders play a pivotal role in recognizing the evolving business landscape and devising strategies to respond effectively. Equipping employees with critical thinking, decision-making, leadership, and management skills is paramount in retraining initiatives. This focus is unsurprising, as reskilling and upskilling demand high levels of self-motivation, confidence, and determination. Taking on new challenges in an unfamiliar environment requires unwavering commitment and resilience.

It’s worth noting that leaders themselves are not exempt from the retraining process. They must consistently evaluate their own skill sets and be willing to upskill or reskill. Modern leadership training programs are expanding to include an increasing number of modules on core skills, as leaders must lead the way in developing new skills, both for themselves and their teams.

5. Foster a Culture of Learning

The technological forces driving the skills crisis show no signs of abating. Consequently, retraining programs must be adaptable and sustainable to meet future disruptions. Building and instilling a culture of learning is instrumental in achieving this goal. It transcends mere access to training and encompasses actively promoting learning as an integral part of the work environment. It entails fostering a growth mindset among employees, encouraging them to view change as an opportunity and empowering them to take charge of their own development.

Long-Term Benefits of Retraining

The advantages of retraining are multifaceted and far-reaching:

• Retaining People and Knowledge: Offering retraining and career development opportunities increases the likelihood of retaining staff. Organizations reap the benefits of investing in their employees, preserving valuable knowledge and expertise.
• Attracting Talent: Providing retraining opportunities can position your organization as an attractive magnet for highly skilled and motivated individuals seeking career growth.
• Boosting Confidence and Morale: Commitment to retraining fosters contented, motivated, and confident employees, resulting in proactive and engaged staff. This virtuous cycle of success feeds off success.
• Enhancing Performance: The positive impact on staff translates into a stronger bottom line, creating a resilient, agile organization that actively navigates disruptions and is well-positioned to reap the rewards.

The Path Forward: Retraining Is Essential

Even before the pandemic, a revolution was underway, reshaping jobs and market dynamics. There’s no turning back, but moving forward demands that leaders enact a comprehensive and flexible retraining agenda. This agenda should not only focus on enhancing employees’ technical skills but also prioritize the development of their emotional and mental faculties. Retraining empowers employees, equipping them with the skills and confidence needed to face the future boldly. A confident workforce cultivates a resilient business that thrives in the face of disruption and is poised for lasting success.