Why Upskilling is Better than Hiring?

Technological advancement pushed businesses to change their business model to cater to new customer demands and employee expectations. Businesses are urged to find the balance between having a profitable business while developing a culture of innovation and reinvention to remain globally competitive. With that said, having the right team with the right skill set during this time of digital transformation should be your top most priority.

Keep in mind that this isn’t a matter of learning how to utilize automation technology, it’s about creating a space for analytical, creative, and experimental thinking. This requires knowledge, new skill sets, and perspective that may not yet be present in the business. Upskilling your current team will help them learn these skills that can help both individuals and the business grow progressively.

But how is upskilling better than hiring new talents? Here are 9 reasons why:

1. A cost-efficient option

Hiring new employees is expensive, and replacing existing ones costs even more, not money but time. According to Corporate Talent, Learning, and HR technology Expert Josh Bersin, it can cost as much as six times more to hire from the outside than to build from within. Attracting, vetting, hiring, and training new employees are all the pricey parts of onboarding someone new.

On the other hand, upskilling is just a fraction of that cost. While there is an initial investment with their upskilling training efforts, the overall cost doesn’t come close to double their annual salary. Once you’ve trained your employees to learn the skills they need, your company will see cost savings or even an increase in profitability.

2. Utilizing existing knowledge

Experience can’t be taught nor trained. It takes time, effort, and resources to gain insider knowledge and adjust to the work culture. When you’re hiring someone new, you have to start from scratch. This means you have to invest to train them and wait for them to adjust to their new roles.

By leveraging your current team’s experience through upskilling, you are accessing their wealth of experience that will help the business in achieving its goals and increase productivity.

3. Allows companies to leverage new technologies

Technology is transforming the way we work. Although this might be a good transformation, some employees are worried that they are going to lose their jobs because of these advancements.

This couldn’t be further from the truth. Instead, employees should feel empowered and reassured as automation technology can take care of the menial tasks for them as they can focus more on important work. This is the reason why most companies have already considered and invested in employee upskilling efforts due to tech advancements.

4. Employees want to learn

Opportunities to learn new skills and develop their craft are the number one reason why employees join companies they are currently with. It is also the main reason why they stay in their roles.

Today’s generation of employees’ attitudes towards learning has changed. Most of them want to learn while they are working. So, they expect a work culture that allows them to develop the necessary skills they need through real-time access to knowledge and information. Few employees favor classroom-style learning instead. They prefer to have control over how and when they learn.

5. Boosts morale

Employees who have access to training and development opportunities for their rules are more satisfied in their jobs and have a brighter outlook on their future with the company. Upskilling your team helps them see the path to career advancement. In turn, this gets them excited about work and what’s next for their careers. The best career motivation is knowing that they are working towards something that will lead them in creating a deeper sense of purpose.

6. Improves employee retention

No worker would want to work on a business that doesn’t invest in its employees’ career development. Your upskilling efforts will not only ensure that your team’s skill set won’t become obsolete, but it also shows your people that you care about their individual career growth.

7. Increases customer satisfaction

Upskilling keeps your team up to date on industry trends that help them offer the best recommendations and insights to your clients and prospects. As a result, clients are more than willing to pay to work with a more knowledgeable and proactive team.

And we all know what happens when customers are happy with the work your team does; they become your business brand advocates.

8. Sustains a culture of learning in the workplace

There is no one willing to work on a business that doesn’t value its employees. That is why as a business owner, one of your main goals should be to support every employees’ career growth by giving them continuous learning opportunities.

This means an ongoing process of relearning and keeping up to date on job-related knowledge and skills. This will help you ensure your team is working towards having the in-demand skills needed to succeed in the future venture of the business.

Creating and scaling a culture of continuous learning can be a challenge but it can be easier when you are on top of things. As a learning leader, your role is vital in creating and sustaining this learning culture. To do this, you can:

– Make your team aware of the training resources

It’s important to regularly inform your team that there are training opportunities set for them. Doing this will remind them of the program despite their hectic work schedules and can participate in it.

– Provide them with a learning library

If you are looking to provide your team with a self-directed learning platform, you need to ensure that your learning resources are organized, accessible, and easily searchable. This will allow your team to find the information that they need whenever they need it.

– Communicate business objectives

By connecting the training to current and future benefits, you can motivate them to take training seriously. Encourage your team with their training by communicating how it will affect their careers and how it can benefit the company.

– Make training a necessity

Training isn’t a one-and-done thing. Don’t leave it all up to your employees once you’ve deployed the program. Work together with your managers to advocate learning and make time for your team to learn new skills and hone their craft.

9. Make workplace changes easier to handle

As businesses evolve, strategies and business models have to change and will require new skill sets and more mobility opportunities. Aside from equipping employees with the right skills to meet your business demands, upskilling can also introduce new workplace changes and help them adjust quickly.

While there will always be unpredictable changes, you and your team can be prepared and quickly adjust as they come. So, it is up to you and your managers to ease the impact of these new changes happening by having an upskilling program initiative.

More companies have put upskilling program initiatives to handle drastic changes in the workplace. TalentLMS, Workable and Training Journal survey shows that 68% of companies that invest in reskilling/upskilling training are better equipped on handling changes within the organization.

By upskilling, you’re investing in your team’s specific skill sets and encouraging the ability to accommodate and adjust to change. This allows you to introduce new digital technologies and business changes more efficiently compared to hiring externally.