Digital Upskilling Can Give Your Business a Competitive Edge
Digital technology has transformed the 21st century beyond recognition. But for businesses, the constant march of technological advancement is both an opportunity and a threat. Staying up to date and making the optimum use of emerging technology can make your business work with better speed and efficiency, resulting in happy customers and superior margins. But if personnel lack the requisite knowledge and skill, that can be easier said than done.
A recent study commissioned by Microsoft found that two-thirds of hiring managers say they have difficulty finding suitably qualified digital talent. To market researchers, that is no surprise. Back in 2017, the Brookings Institution published a report titled Digitalization and the American Workforce. The study compared the level of digital skills demanded in 2002 and 2016 and found that while 56 percent of U.S. occupations required “low” levels of digital skills in 2002, that figure was down to 23 percent in 2016. Those requiring medium levels had risen from 40 to 50 percent, while jobs demanding high levels of digital skills from five percent in 2002 to 23 percent in 2016.
Upskilling staff in terms of their digital capabilities makes them more valuable contributors to the business. It also means they can access higher-paying jobs, so it is beneficial for both businesses and employees. But it also brings challenges and demands investment of both time and money. We have asked a cross-section of experts about the challenges of digital upskilling and how to do so with success.
Is upskilling more cost-effective than hiring new staff?
Research we conducted in 2022 with senior business, HR and L&D professionals revealed that organizations value training employees through upskilling, reskilling and cross-skilling programs. It helps to retain good talent and valuable internal knowledge and demonstrates to employees there are multiple career paths within the company. It is also more cost-effective. When you consider the high costs for recruitment, the opportunity cost of replacing employees and the weeks or months it can take for new employee induction, upskilling can save businesses in the region of $35,000 to $45,000 per employee when compared to replacing them with new hires. Russel Kenrick, Managing Director at ILX
Where does a small business start when it comes to upskilling?
There are lots of different ways to upskill employees, it’s not all about training programs. There are two components to upskilling – one is employee-led and the other is business-led. An employee-led development program is where people have their own development plans in place. If your employees feel that they’re growing and developing their skills and that these skills suit their strengths and their career goals, they are going to be more satisfied and more likely to stay in their roles. Even though it’s employee-led, it still has a business benefit. Second, initiate a business-led program where you actively develop the skills you will need in your business over the next 12 to 24 months. One way to do that is to have a look at your strategy for this period, in terms of your company goals and strategy. Karen Kirton, founder of Amplify HR.
