As the demand for new skills accelerates, reskilling and upskilling offer vital solutions for organizations to stay competitive. By 2025, the Forum predicts that up to 85 million jobs could shift due to changes in the division of labor between machines and humans. However, there’s also the anticipation of creating 97 million new roles driven by technological advances and ongoing digital transformation. Even for those remaining in their current roles, around 40% of core skills are expected to change. This underscores the urgent need for reskilling and upskilling across all levels of employment, departments, and companies. With significant changes projected by 2025, the time to act is now.
Let’s differentiate between reskilling and upskilling and explore how these strategies can better equip your organization for forthcoming industry shifts.
Reskilling vs. Upskilling
Upskilling involves learning new skills or teaching workers new capabilities to enhance their existing roles. Reskilling, on the other hand, entails acquiring new skills to transition into a different job role or training individuals for alternative roles. Both approaches are crucial for employers to address the anticipated skills shortage effectively.
Reskilling targets individuals with “adjacent skills,” closely related to the new skills required by the company. It offers a lateral learning experience, essential for meeting the extensive reskilling demands of today’s workforce. The World Economic Forum estimates that by 2025, half of all employees will need reskilling due to technological advancements.
Conversely, fostering a culture of upskilling involves providing employees with advanced skills to bridge talent gaps. This approach emphasizes continuous education, enabling employees to progress within their current career trajectory. Investing in employees’ careers not only fosters loyalty but also boosts retention rates. According to LinkedIn Learning, 94% of workers would choose to stay longer with companies that actively invest in their career development.
While many organizations recognize the importance of workforce development programs in addressing the skills gap, implementation is hindered by financial constraints and inadequate technology. However, delaying action jeopardizes your company’s ability to achieve long-term goals if access to necessary skills remains lacking.
Solution: Career Pathing
Implementing structured career pathing is one of the most effective ways to integrate reskilling and upskilling into your organization. Career pathing is the process used by an employee to chart a course for their personal career development.
Successful career pathing strategies adopt a competency-based approach, evaluating the specific competencies required for each role and identifying the skills development necessary for employees transitioning into new positions.
Career paths are personalized for each employee, outlining the steps needed to achieve long-term career goals through lateral moves or promotions. They highlight the knowledge, skills, and personal traits required, helping identify specialized skills and additional training needed to fulfill career aspirations.
By embracing reskilling, upskilling, and structured career pathing, organizations can proactively address the evolving needs of the workforce, ensuring they remain competitive and agile in an ever-changing business landscape.
The benefits of career pathing
Introducing career pathing into your organization offers numerous benefits, including:
- Meeting Future Demand: By identifying existing capabilities, you can focus on developing key skills within your current workforce to meet future demand effectively.
- Identifying Hidden Skills: Career pathing empowers employees to assess and detail their own skills, uncovering potential talents that the business may not have been aware of.
- Creating a Culture of Talent Mobility: In today’s competitive talent landscape, employees seek employers committed to their future career growth. A career pathing strategy not only attracts talent to your organization but also boosts motivation and retention rates among your employees. It fosters internal mobility, both laterally and vertically, showcasing your organization’s commitment to valuing its people.
As digital transformation continues at a rapid pace, implementing an effective career pathing strategy that integrates reskilling and upskilling is beneficial for both employees and HR. Moreover, it’s imperative for your organization to stay competitive in the evolving skills market.
Want to learn more? Here’s what to look at next:
Watch the webinar: Career Pathing and Talent Mobility: Driving Engagement and Performance
Read the white paper: Career Pathing as a Talent Imperative
