For years now, businesses have recognized the need to keep up with the latest tech. Certain skills have become obsolete and others are emerging. Thus, there is a need for retraining staff to make sure businesses can continue to grow. Why has this need become even more apparent post-Covid?
Impact of covid on workforce
The coronavirus has had a negative effect on many businesses. Companies are struggling to reach customers in the way that they used to before the pandemic. However, instead of cutting costs on training employees, upskilling and reskilling has become an important way for firms to compete and stay relevant.
By enabling staff to develop new skills, firms are able to stay ahead of the competition and excel in their fields. However, not all brands choose this path. Since upskilling and reskilling can be expensive, some businesses have instead considered funding options before committing to a training programme. Other options that have helped companies compete are investments in marketing and advertising as well as embracing new technological products and advancements.
Why reskilling matters
Reskilling is a form of training that allows employees to adapt to an entirely new position. Compared to upskilling, where staff learn new skills that can help them in their current job, reskilling focuses on a completely new task. In some cases, jobs had to be merged as a result of laid-offs in 2020 and 2021. This made retraining employees necessary who were now responsible for more than one position.
Gallup estimates that replacing an employee who has left the company can cost as much as half or even twice the amount of their annual salary. This can create a huge burden on companies, especially when looking to replace employees in higher positions with larger annual incomes. By training employees and investing time into their development, they will be less likely to leave and search for another job. Upskilling will also allow staff to feel valued, becoming more motivated to excel at their jobs. Additionally, happier employees are more likely to speak highly of their employer, which will contribute to the good reputation of a brand.
Most importantly, customers can also benefit from staff that is highly skilled and knowledgeable in the field that they work in.
Not only have smaller businesses suffered as a result of the coronavirus, but larger corporations have been forced to lay off staff and cut expenses. Some banks have begun closing high street branches and global brands such as Coca-Cola have cut thousands of jobs. The steep competition and financial effects on many businesses has led many companies to invest in reskilling and upskilling.