Upskilling and reskilling: Importance for employees and companies
15 de February, 2024
The growth of companies is closely linked to the training and skills of their professionals. It is people’s skills that enable businesses to be prepared for change, unpredictability and innovation.
In this context, the concepts of upskilling and reskilling are of fundamental importance, not only for the performance of organizations, but also for the careers of the employees themselves.
Find out with us what upskilling and reskilling are and how important they are for professionals and businesses.
What is upskilling?
Upskilling consists of developing skills and updating knowledge in the area in which the professional already works. It’s about increasing mastery and expertise in a particular topic.
Some examples of upskilling could be professionals working in digital marketing taking a certification in SEO or project managers taking training in agile methodologies.
Benefits of upskilling for the company
Many employers and managers still believe that employees leave only for financial reasons. However, the lack of training and professional development opportunities is one of the main causes of turnover in companies. Professionals, especially those from the younger generations, like to feel challenged and fulfilled in their work and value organizations that invest in their growth and progression.
In this sense, investing in employee training improves employee retention and, by reducing turnover, also reduces recruitment costs.
What’s more, companies with better-trained professionals bear fruit in terms of productivity, creativity and innovation, which contributes to their competitiveness and growth.
Benefits of upskilling for employees
Naturally, when employees are given opportunities for ongoing training, they feel greater confidence in their work, greater satisfaction and motivation. This can also lead to a reduction in stress levels associated with feelings of stagnation.
What is reskilling?
Reskilling refers to the acquisition of new knowledge with a view to retraining the professional, i.e. developing a new skill in order to perform a new function.
Companies must provide their employees with retraining opportunities in order to remain competitive and adjust to the new challenges of the market and their sectors of activity.
According to the World Economic Forum, more than 1 billion professionals need to be retrained by 2030, as their jobs will be radically transformed by technological advances and the digital transition.
Benefits of reskilling for the company
Company managers are already facing gaps in hiring certain profiles of professionals, such as in areas related to Artificial Intelligence, Data Analysis, Cybersecurity, Sustainability, among others.
One way of getting around this talent shortage is by implementing retraining programs, which allow employees already working for the company to acquire these new and increasingly relevant skills. In this way, the organization avoids the difficulties and increasing costs of finding profiles with these qualifications on the market.
In addition, investing in employee reskilling also helps to eliminate unnecessary costs inherent in functions that are becoming redundant or irrelevant, in other words, it increases efficiency and competitiveness.
At the same time, when companies better prepare their employees for the challenges of the future, they increase levels of satisfaction and motivation, productivity and a sense of belonging.
Benefits of reskilling for employees
Workers who fail to adapt to changes in the labor market will necessarily fall behind in their careers.
When professionals have relevant skills, and are up-to-date and trained in areas that are highly valued in companies and the job market, they will have greater job security (the likelihood of becoming unemployed is lower). In addition, they will typically have more opportunities for career progression and access to better salaries.
As the business world changes at a faster pace than ever before and there is talk of a 4th Industrial Revolution, companies will only be able to remain relevant and competitive if their employees are trained and up-to-date. And this is only possible with training.
Without continuous learning opportunities, professionals – and companies – run the serious risk of becoming obsolete.