Employee upskilling entered into the picture of HR trends some time ago. A recent Udemy’s survey showed that the upskilling demand grew to a whopping 38% in 2020. As a comparison, in 2019 this figure was only 14%. How has upskilling become one of the key HR trends? Because it’s a sustainable and lean approach to developing your workforce. Upskilling initiatives help HR professionals retain employees, boost morale, and cut costs on recruiting and onboarding.
Last year brought us challenges like laying off, increased number of sick leaves, and transition to remote work. To stay agile and adapt to external market challenges, organizations will implement upskilling initiatives to help their workforce stay competitive in the job market.

Upskilling prepares your team for new challenges

With technology moving at a rapid pace across most sectors, the workforce must learn new skills. In just a few short years, it’s predicted that nearly a third of all jobs globally will be transformed by tech. You can help future-proof your organization by first preparing your people. Proactive leaders are training their existing staff to move into new roles rather than hire from the outside. Your current worker knows the company and that institutional knowledge allows them to absorb training within your organization more quickly than a new hire. Upskilling allows your team to be more nimble in the face of both industry and technological disruption. Equipping your people with new skills makes them more productive, makes your entire organization more efficient and contributes to developing a learning culture that fosters innovation.

Upskilling can boost retention rates

Employee turnover can be expensive. Depending on the size of your organization, the costs of worker attrition could add up quickly. The pandemic has sparked incredible churn in employment metrics. Initially, unemployment shot up, but a lot of workers also switched careers. Workers have proven they’re ready to learn new skills. They just need the opportunity. And they’re willing to jump ship to get them. In September alone 2021 alone, 4.4 million Americans resigned and 65% of US workers admitted they were looking for a new job. The good news? More than a third of job-seekers say they’re willing to sacrifice salary in exchange for skill-building opportunities. Be the standout employer who asks, "how do I upskill my employees?" And then deliver those learning opportunities. Think of upskilling as the new 401(k). In a tight labor market, you can use upskilling as a perk and talent strategy lever that can boost engagement and company stickiness.