In the aftermath of the pandemic, the business landscape has evolved with several emerging trends. A 2020 survey by McKinsey & Company revealed that the pandemic significantly accelerated the adoption of digital technologies, and it was anticipated that these changes would persist. Four years on, this forecast has proven accurate. Digital technologies have been widely adopted across organisational and industrial levels, as well as among consumers.
Artificial Intelligence (AI) and other advanced technologies are transformative in this shift. The Organization for Economic Cooperation and Development (OECD) projects that technology will reshape 1.1 billion jobs over the next decade due to AI and machine learning advancements. This transformation is expected to have an impact on human resources.
Business leaders face the challenge of addressing widening skill gaps. In the coming years, the gap between available workers and open positions is further expected to widen. The mismatch between the skills required for various roles and the knowledge employees currently possess could exacerbate these issues as employees may struggle to transition into roles critical for business operations.
In turn, recruiting skilled talent from outside the organisation will likely become more costly than it is today, underscoring the crucial need for comprehensive reskilling programmes to stay competitive and relevant in this rapidly evolving environment.
Navigating the future
Reskilling refers to the process of equipping an employee with new skills to enhance their current job performance or to prepare them for a more advanced role. A 2023 study by the Digital Data Design Institute at Harvard’s Digital Reskilling Lab, in collaboration with the Boston Consulting Group’s Henderson Institute, underscores the urgent need in today’s business environment. Based on interviews with leaders from nearly 40 organisations worldwide, the study highlights that reskilling is no longer a matter of ‘what and why’ but ‘how’.
The study argues that reskilling has become a strategic imperative for contemporary businesses. Avoiding layoffs and fostering positive public relations is essential because factors like the ageing workforce increasingly constrain the labour market. Implementing effective reskilling programmes can give companies a competitive advantage by developing job-specific skills that are not readily available in the market, giving them a head start over their competitors.
Several companies have set notable examples in implementing impactful reskilling campaigns. For instance, Infosys has launched a flagship digital learning platform designed to equip individuals, communities and society with the skills necessary for success in the 21st century. This platform focuses on upskilling in areas such as digital technologies, emerging tech and essential life skills.
Similarly, ICICI Bank has been running an intensive reskilling programme to prepare graduates from diverse backgrounds for managerial positions. This initiative underscores the bank’s commitment to developing a skilled workforce capable of meeting the demands of today’s evolving business environment.
Another trend to keep into account is the rise of green technology. Given the growing emphasis on sustainability and the shift towards greener practices, we are now witnessing the rise of a green-collar workforce. In response to this, reskilling becomes increasingly essential. As companies and governments focus on reducing carbon footprints, a rising demand for jobs centred around sustainability exists.
The share of green talent in the workforce rose by a median of 12.3% between 2022 and 2023, according to LinkedIn’s Global Green Skills Report 2023. This shift necessitates reskilling for those in industries like fossil fuels, who may need to transition to roles aligned with sustainability efforts. In this case, reskilling plays a critical role in helping workers adapt to these evolving job markets and seize emerging opportunities.
Through collective effort and inputs
In reskilling processes, it is crucial to view employees as partners in the journey. The Harvard study underscores that reskilling demands substantial time and effort from employees. Consequently, organisations should aim to minimise the associated risks, costs, and burdens to enhance the effectiveness and efficiency of the process.
Adopting a people-centric approach is essential. Consider IBM’s reskilling model as a prime example. IBM launched the IBM Skills Academy to provide employees with advanced training in emerging technologies. By partnering with educational institutions and implementing an internal mobility system, IBM enables employees to transition into new roles within the company as they acquire new skills. This strategy has fostered a culture of continuous learning, giving IBM a competitive edge and creating a pipeline of strategically skilled employees.
Furthermore, the reskilling process demands considerable effort from management, extending beyond mere employee training. Successful reskilling requires fostering the right mindset and behaviours among employees and managers. Given the high costs involved, coalitions of companies might be more effective in addressing reskilling challenges than individual organisations. By collaborating on joint training initiatives, companies can mitigate some of the difficulties of reskilling. Partnerships with local colleges and training institutes further enhance these efforts, providing valuable resources and support.
In a nutshell, the importance of reskilling brings in several key benefits. It is essential for adapting to a rapidly changing environment, future-proofing careers against automation and AI, meeting shifting organisational needs, and enhancing long-term employability. As we navigate the Fourth Industrial Revolution, or Industry 4.0, where the boundaries between technology and business continue to blur, skilled employees are more critical than ever. They are the driving force behind client relationships, technology management and business growth.
To maintain competition and relevance in the market, employees will increasingly have to engage in continuous skills training as individuals and organisations risk falling behind and becoming obsolete without sufficient learning opportunities.
