The world of business has seen major changes in recent years, from automation transforming manufacturing jobs to technology shifting white-collar responsibilities. Young disruptors across industries have set new standards, and the nature of business needs has ebbed and flowed with the pandemic.
Now, with artificial intelligence advancing business practices even further, companies are seeking talent that can help them keep up with these changes and more. Meanwhile, workers are seeking career growth, and fortunately, there is a growing trend in reskilling, which involves expanding employees' skill sets so they can take on different work and fill a business need. According to new research from Principal®, skill sets have changed by 25% since 2015, and that number is projected to double by 2027.
Reskilling can open doors for new types of work without hiring or firing and help team members take earned and desired next steps in their careers. Moreover, it may help retain trusted employees who have institutional knowledge. Small- and mid-size businesses are turning to reskilling more than ever to fill business needs, with 88% of them saying it's hard to find candidates with the right skill sets at present, their biggest hiring challenge by a landslide. On the other hand, career growth opportunity is the second most cited reason employees resign for new jobs, after pay.
Therefore, employers and employees alike are prioritizing upskilling or continuing education to help employees advance in what they're already doing and stay current with the industry. To start a reskilling program, businesses should consider where they want to be in five years and what services they would like to offer, identify knowledge and capability gaps, engage employees in the process, explore development options, work out the details, and put the plan into action. Reskilling is an investment in talent that fuels valuable, long-term growth for both businesses and employees.