In a recent Holmes report, it was found that over 400 companies with 100,000 employees each cited an average loss of $62.4 million per year due specifically to inadequate communication with clients and between employees. Miscommunication reportedly costs even smaller companies of approximately 100 employees an average of $420,000 per year.[1] Think about that number. Almost half a million dollars is lost by mid-sized businesses due exclusively to poor communication among staff or with clients every year. Is that just an unavoidable cost of doing business? Or is there a fundamental gap in employee learning that this fact is highlighting? Can we fix this problem and maybe, also accomplish a few other goals that a company may have? The answer is “Yes!” and the solution is upskilling.
Upskilling is the concept of expanding and sharpening the skillsets of your present employees. Different than re-skilling, where employees would be taught entirely new tasks so they could do a different or an additional job, upskilling is the art of expanding and developing the employee’s current abilities. They are not being re-trained; they are being developed. By approaching employees with this goal, challenges with communication or leadership may be addressed. And professional growth may take place organically.
On a basic level, upskilling is investing in your workforce to meet the changing demands of a business. Given recent dramatic changes caused by the pandemic and the emergence of new expectations in work cultures, upskilling in soft skills has become increasingly important for many businesses. In fact, according to a recent McKinsey global survey, 42% of companies have increased their upskilling programs since 2020.[2]
Upskilling also demonstrates a long-term investment in a workforce. It acts as a catalyst for retention, and it also affords the opportunity to sharpen softs skills like leadership, communication, team building or by incorporating wellness practices to decrease employee burnout. In many ways, upskilling can be incorporated and used to promote a healthy working environment.
For too many years, employee development, particularly with soft skills, was overlooked. In our present era, employees now demand to be seen as whole persons who desire to be developed. Employers who are adapting to the current workforce expectations and trends are the ones who are savvy enough to reap the rewards of a more stable and more productive workforce and upskilling is the key.
[1] “The Future of Work: A Shift Toward Soft Skills and Constant Upskilling,” Prabhul Ravindram, peoplematters.com.
[2] “Survey: Upskilling and Re-Skilling in 2020,” Keith Mackenzie,workable.com.