The yearning for growth is a natural human tendency and a lack of it in any job may lead to a low job satisfaction rate and a reduced ability of the company to retain its workforce.
According to Pew Research Center, 63% of employees who quit their jobs in 2021 listed one of their primary reasons as the lack of opportunities for personal development and advancement in the job.
So it becomes very important to ensure that the employees remain engaged in a continuous process of learning, development, and growth to keep them motivated and updated on the latest developments in the industry. Over 65% of the employees consider employer-provided Upskilling as an integral factor in evaluating a potential job.
So, let us deconstruct the importance of employee upskilling and reskilling and explore the benefits it provides to a company.
What are Employee Upskilling and Reskilling?
While the terms upskilling and reskilling may seem similar, both have substantial differences. While the former refers to the employee learning additional skills to do his present job better, the latter refers to the employee learning a set of new skills to perform a different job altogether. Upskilling is used when the employer wants to improve employee work efficiency and work quality.
In contrast, reskilling is used when the employer wants his employee to adapt to the changing dynamics of the industry and do a new task altogether. Both of these help the company to maintain work quality, efficiency, and adaptability in the industry by ensuring employee development.
Why is Upskilling Important to an Employee?
Upskilling plays a major role in helping avoid stagnation of the work life of the employees and ensures that they continue to develop their respective skill sets which can help boost their careers. It also plays an important role in maintaining workplace engagement and fostering new relationships by enabling increased communication and cooperation among the employees.
With the rapid evolution of technology and the needs of the market, the employees are in continuous threat of being replaced. By teaching new skills through upskilling, the employer helps ensure that the employee remains adaptable to the new challenges and provides improved job security and job satisfaction in the long run.
The new skills learned in the process of upskilling boosts their morale and accelerate the personal development of the employees, eventually improving their overall productivity and efficiency.
In terms of economic benefits, the average increase in the salary of a worker who participated in an upskilling program was 8.6%. Another research tells us that 48% of the workers look for a job that provides employee development opportunities.
What are the Benefits of Employee Development?
With the increasing level of competition and the changing market dynamics, it is very important for every employer to constantly develop and retain his workforce. Employee development programs help improve job satisfaction by empowering the employees and keeping them engaged.
With the rapid evolution of technology, several jobs have become obsolete and are being replaced by machines. However, upskilling and reskilling allow the company to train them to take on varied roles, hence ensuring retention and eventually cutting the cost of hiring new manpower. Considering that the cost to replace an employee is likely to be twice their annual salary, employee development is a cost-effective investment.
Employee development programs facilitate open communication between the employees and the management, which helps in the smooth functioning of the company. It also ensures that the employees begin aligning themselves with the present goals of the company and work together to achieve them.
How to Nurture Employee Development in your Company?
Employee development is a vital process that needs meticulous implementation so that the employer can reap the benefit of long-term employee retention. Open-ended communication with employees is important for the mutual growth of the employee as well as of the company. Taking inputs from employees by creating an approachable means of communication can create a strong plan and an effective strategy. This way each employee feels committed to his company and very naturally makes its goals his goals.
In the post-pandemic world, companies are forced to juggle between providing job satisfaction and keeping up with the competition. Upskilling can create immense value since it allows the employer to create a strong workforce that willingly works hard to beat the competition.
The meaning and importance of work have undeniably evolved, and money no longer remains the sole reason for employees to seek a job. They have begun re-evaluating their priorities, opting for more meaningful, value-adding jobs. Work-life balance and increase in self-worth through additional skills are now their top-of-the-list considerations.
When aligned with organizational beliefs, mission, and values, upskilling offers holistic development to an employee which he, in turn, uses to boost the quality and efficiency of his job role. Hence, Upskilling has become a necessity in every organization looking to provide job satisfaction to its employees.
Batik is an employee benefits marketplace. We have built this on a mission to help employers elevate the benefits offered to employees. Batik allows employers to access benefits across various categories such as finance, insurance, gift cards, health, fitness, etc at exclusive prices. Employers can provide benefits with just one click and support their workforce’s well-being with zero administrative burdens. In simple words, Batik is like an amazon marketplace.
Let Batik do the heavy lifting and offer flexible upskilling and reskilling benefits to your employees that not only prepare them for all kinds of workplace challenges but also help you, as an employer, create an interactive and happy work environment.