The historically low unemployment rate in the tech sector has long been problematic for employers. The difficulty in filling open roles intensified in the 2020s. Employee priorities changed as they embraced a healthier work/life balance during the pandemic era, resulting in significant workplace shifts. At the same time, tech became even more ubiquitous as our lives moved online, creating more tech-based roles in other sectors, such as education, health, and finance. And, technology has made swift advances so far this decade, especially with the emergence of artificial intelligence (AI). This has created a knowledge gap because there aren’t enough skilled workers to manage the new tech.
The answer to all these issues – and more is – upskilling.
Upskilling is the process of teaching employees new skills that allow them to adapt to workplace changes and continue doing their current jobs. It differs from reskilling, which involves training employees for different roles.
Upskilling has benefits for both employees and employers beyond addressing the immediate issues of a narrow talent pool and unfilled roles. Opportunities to learn and grow in the workplace make employees feel valued, which fosters loyalty, increases engagement, and improves job satisfaction – thereby improving retention rates.
Everyone wins when companies introduce relevant upskilling programs.
The Changing Landscape Of Tech Employment
Rapid advancements in technology, shifting market demands, and newly emerging tools and methodologies mean that the tech industry is constantly evolving. As a result, the skills that tech workers need are in a state of constant evolution as well. It’s been estimated that the shelf life of tech skills is only 2.5 years.
In this environment, it’s critical that tech professionals continuously update their skills. Upskilling allows them to perform their current jobs effectively and efficiently – thus contributing to their company’s success – while also staying competitive in the job market.
While it may seem counterintuitive, employers who provide opportunities for learning and growth are better able to attract and retain top talent. Although there may be some fear that investing in upskilling will give employees the tools they need to jump ship for other job opportunities, employer-provided upskilling programs show employees that they are valued, ultimately encouraging them to stay.
What Are Upskilling Programs?
Upskilling programs are essentially learning opportunities that can take several forms. The intent is to teach new skills so that employees can use newly introduced tools and methodologies in their current roles. Workshops, online courses, certifications, and mentorship arrangements can all function as upskilling programs.
For example, Amazon offers nine different upskilling programs to its employees as part of its Upskilling 2025 pledge. The programs range from apprenticeships and paid on-the-job training to certification opportunities and pre-paid tuition at selected post-secondary institutions.
Benefits Of Upskilling For Employers
At its base, any upskilling program exists to increase skill proficiency or teach new skills. A workforce with improved and/or new skills can only benefit an employer.
Most obviously, upskilling increases productivity. With the knowledge and training needed to effectively use all the tools and methodologies that are available to them, employees will be able to work more efficiently and effectively. Tangentially, improved efficiencies and access to the best possible tools often lead to increased innovation.
Better work processes can positively impact employee engagement, collaboration, teamwork, job satisfaction, morale, loyalty, and retention as employees take pride in their work.
It goes without saying that these improvements can have a significant impact on a company’s bottom line.
There are other benefits for employers as well. A company’s brand and reputation can be affected positively when it offers upskilling opportunities. Top talent is often attracted to companies that invest in their employees and their success.
Benefits Of Upskilling For Employees
Upskilling obviously benefits employees in their current roles. However, it also supports career growth. By learning the ins and outs of the latest tools and methodologies, employees will have better opportunities for advancement both within their companies and the broader job market. Not only will they be able to market those new skills but participating in upskilling demonstrates their willingness to learn and adapt on the job.
Having a sense of pride in their progress and accomplishments can help employees feel more confident and empowered in their roles, contributing to the same kind of positive results discussed above, namely improved engagement, collaboration, teamwork, job satisfaction, morale, loyalty, and retention – all of which also benefit the company.
Upskilling And Retention
Upskilling has been proven to impact retention positively. When employees feel like their employer is invested in their growth and there are possibilities for advancement, they’re more likely to remain loyal to the company and stay for the long term.
Strategies to improve retention in tech are particularly critical because of the shortage of skilled tech workers. Tech professionals are often passive candidates, targeted by recruiters desperate to fill open roles. Keeping tech talent happy, satisfied, and loyal can go a long way to minimizing attrition.
Tech companies such as IBM provide excellent case studies for the effectiveness of upskilling in recruitment and retention. Launched in 2017, IBM’s “New Collar” apprenticeship program provides workers with some tech skills – but no degree – with the chance to:
collaborate and network with real IBMers, receive mentorship from experts in their field, earn digital credentials, and fast-track their technical and professional development… And by focusing on skills over traditional degrees, the program is helping to close the tech skills gap and bring new talent, regardless of educational degree, into the tech industry.
By late 2023, almost 20% of IBM’s American workforce did not have a degree. Instead, on average, IBM’s global employees spend more than 80 hours per year on professional development. The apprenticeship program works. According to IBM, “We know this program builds talent effectively, as 90% of our apprenticeship graduates convert to full-time IBMers. The IBM Apprenticeship Program is now part of our talent strategy, and we continue to hire apprentices to meet our talent demands.”
IBM is just one example of the effectiveness of upskilling programs. In general, upskilling works – for both employers and employees.
Upskilling And Recruitment
In today’s competitive job market, tech candidates want more than just a job and great health benefits. They want a healthy work/life balance and opportunities for learning, development, and advancement.
Upskilling can be a key to attracting top talent. Candidates will be interested in a company that’s committed to their long-term success. As well, upskilling opportunities on the job limit the need to pursue work-related learning on personal time, which positively impacts work/life balance.
It’s important for employers to actively promote their upskilling programs as a way to differentiate themselves from competitors and attract top talent. Posting about upskilling opportunities on the company’s website and social platforms helps to strengthen the company’s brand and lets potential candidates know how the company will support their learning.
Whether posting about upskilling opportunities online or discussing them with job candidates during the interview process, it’s important to be specific. Include details around time and funding allowances for professional development, the people involved (e.g., external trainers or internal mentors), and the structure of the programs (e.g., online courses vs mentorship programs).
Implementing Effective Upskilling Programs
Every company needs to determine its own unique upskilling programs based on the tools used in the workplace and the needs of its employees. Workers who are new to the tech field will need different types of upskilling than long-term professionals.
Start by assessing employees and their work processes to determine where skills gaps exist. Then, identify the best type of upskilling program to address those gaps. Online courses or certifications might be adequate but it may be necessary to develop in-house programs tailored to your specific needs.
Assessments of employee skills and all upskilling programs should be ongoing. As new technology is added and work processes change, upskilling programs may need to be adjusted to meet new challenges.
It’s also important to integrate upskilling initiatives into your company culture. For upskilling to be most effective, employees need to view learning and growth as integral to their jobs.
Your company may face challenges when implementing upskilling programs. Budgetary issues, time and resource issues, and the need for regular ongoing assessments of the programs can all pose hurdles. Most companies won’t be able to launch upskilling programs as expansive as IBM’s or Amazon’s. That’s okay. The value these programs will add to your workplace and your bottom line can be enormous and well worth any effort needed to implement them. You can certainly start small (perhaps with standardized online courses) and build from there.
To gauge the effectiveness of your upskilling programs, track metrics such as retention rates, productivity levels, and activity related to career advancement among those employees who have participated. Also, gathering employee feedback through surveys and interviews can help identify what’s working with your upskilling programs and what needs to be finetuned.
Implementing, prioritizing, and regularly assessing upskilling programs at your company can have widespread beneficial results – for management, employees, recruitment and retention, and your bottom line.
