Even though 87% of business leaders claim there are critical skill gaps throughout their organizations, nearly half of workers haven’t received formal training in the past five years. The consequences are clear. Nearly 71% of employers have hired candidates that lack necessary qualifications or experience due to a shortage of skilled professionals. As technology advances, many leaders fear their employees will lack the skills they need to keep up. That’s where technical upskilling comes in. Learn how training employees in new and emerging skill sets can give your company a competitive edge below.
The Strategic Importance of Technical Upskilling
Employers estimate that 44% of their workforce will have their skill sets disrupted over the next five years. On top of this, six in 10 employees will require additional training before 2027 to remain proficient in their roles. Tech companies that prioritize continuous learning can get ahead of these industry disruptions. Some technical upskilling benefits include:
- Increased innovation: Understanding how to use the latest technologies accelerates product development and problem-solving.
- Workforce agility: Adopting new tools, such as AI and automation, builds resilience and makes it easier for companies to adjust to unexpected changes.
- Better retention: Studies show that employees feel more compelled to remain working for a company that offers career development opportunities.
Calculating the ROI of Employee Technical Training
Employee technical training programs are a strategic business decision with measurable returns. For example, Multiverse—a tech-first institution dedicated to upskilling professionals to create more economic opportunities—reports that clients who offered data science and software development training to their employees generated $2.5 billion in savings and revenue. Likewise, a Vorecol Learning Management report recently shared that companies with training programs see a 24% higher profit margin. Measuring these financial outcomes demonstrates the long-term value of technical upskilling efforts. To track the return on learning investment of your tech organization, track key performance indicators such as:
- Skill development milestones
- Employee retention rates
- Internal promotions
- Revenue
Building a Comprehensive Technical Upskilling Strategy
A well-structured employee training program encourages innovation and helps teams get ahead of technological shifts. Here’s how to integrate technical upskilling for its competitive advantages across your organization.
Conduct a Skills Gap Analysis
Take the time to assess your current workforce capabilities. Then, use surveys and AI-driven insights to identify the skills your organization will require in the future. For example, reports indicate that 60% of employers expect broadening digital access to transform their businesses by 2030. This will fuel demand for tech-related skills in cybersecurity, AI and big data. Use a skills intelligence platform to track and predict competency needs.
Pair Upskilling Initiatives with Business Objectives
Successful upskilling programs support overarching business goals. Look for areas where digital transformation and education efforts can improve operations. Then, develop training initiatives that bridge critical skill gaps and prioritize internal promotions. Employees who visualize how their career will develop within an organization tend to be more engaged with their work. This means you’ll be able to increase retention and productivity rates while reducing your reliance on external hiring efforts.
Incorporate Advanced Learning Platforms
Create customized learning paths for different team members with AI-powered platforms. Focus on each employee’s current role as well as their career goals. To identify current skill levels, implement real-time skill assessments. Then, use AI to provide curated recommendations to build on what team members already know.
Offer a Mix of Training Models
Every employee learns differently. Incorporate various training opportunities to cater to each person’s preferences and increase retention. Examples of technical upskilling initiatives include:
- Mentorship programs
- On-the-job training
- Project-based learning
- Cross-functional assignments
- Online courses and certifications
- Conferences and tradeshows
- Leadership development training
- Coding bootcamps
Consider collaborating with local universities or trade schools to access advanced training options.
Encourage Continuous Learning at Every Level
Despite the positive research behind upskilling initiatives, only 15% of employees say they’ve received career planning guidance from their managers in the past six months. Empower your team to learn and innovate by providing flexible learning formats. This might include online options or microlearning sessions. Encourage company leaders to enroll in skill development workshops to set a positive example.
Overcoming Challenges in Implementing Technical Upskilling Programs
Implementing a company-wide program always comes with challenges. Here are some of the most common obstacles HR leaders face when introducing technical upskilling programs and strategies to overcome them.
Resistance to Change
Expect to face some resistance from managers as well as employees. A common fear among entry-level employees is that new technology could replace the need for their roles. This is especially true when it comes to integrating automation. Management may be hesitant to support upskilling initiatives if the ROI is unclear. Emphasize career growth opportunities, and share how upskilling can improve job security. Then, encourage ownership by actively involving employees in establishing their learning goals.
Budget Constraints
Some tech companies may struggle to justify the costs of upskilling team members. Highlight research that proves the investment is well worth it. There are also plenty of options available to make upskilling more affordable. Encourage experts in your organization to share their knowledge through mentorship programs to reduce costs, or partner with universities and tech platforms to access discounted training opportunities. Offer on-demand, virtual and in-person options to accommodate different team members.
Keeping Up with Changing Demands
At the pace technology is moving today, a common concern is that employees won’t be able to pick up new skills quickly. The trick is to make learning easy and ongoing. Use personalized training tools and AI-driven learning paths to adapt to each employee’s needs. Deliver bite-sized courses and materials to keep employees up to date without disrupting their daily work routines. Encourage leaders to dedicate a portion of their working hours to skill development. You can also blend training opportunities into the normal workday through hands-on projects.
Invest in Technical Upskilling Today
It should be clear that investing in upskilling efforts is one of the best ways to future-proof your workforce. Here are some actionable insights you can implement:
- Conduct a skills gap analysis to identify missing competencies in your organization.
- Create learning initiatives that support long-term business goals.
- Use AI-driven training programs to tailor learning paths based on individual needs.
- Integrate learning into daily responsibilities through hands-on projects and mentorship opportunities.
Build a more resilient team today. Find out how Dice helps tech companies hire and retain top talent.
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