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Explode your profitability with upskilling
Skills development
Engagement

Explode your profitability with upskilling

Estelle Barthés
Content Manager
November 5, 2022
6 min

According to Les Echos Executive at the Davos forum held by PwC in January 2020,upskilling is an "essential lever for overcoming the talent shortage" in companies. With a skills shortage growing daily in the job market (and mainly in the consulting sector), training is becoming an obligation rather than an option. In an era marked by chronic staff turnover, Big Quit and Silent Quitting, upskilling makes it possible to safeguard existing skills, develop new ones and engage employees... while ensuring the company's long-term profitability. 

In short: what is upskilling?

According to the Association for Talent Development (ATD),"Upskilling and Reskilling, Turning Disruption and Change Into New Capabilities"Upskilling refers to the upgrading of existing skills through training. Its objective is simple: to ensure the durability and evolution of skills so that the employee can evolve in his or her own job

If you are researching the subject, you have probably also seen its twin brother, reskilling. This term refers to the upgrading of skills within the framework of a training program as well, but in order to change jobs or career paths

How does upskilling drive performance?

Upskilling starts with discussions with employees, operational managers and HR on the training actions to be implemented. These exchanges are conducive to the emergence of training courses with real added value for the employee and, above all, that interest him or her! These two elements are essential to ensure that the training proposed is not a waste of time... 

The brake on the skills gap

Still according to a study conducted by PwC, "41% of French managers analyze the skills deficit as a brake on growth". However, upskilling pushes HR, managers and division heads to question the fundamental and transversal skills of their teams. Who has which essential skills? Which ones are missing from the teams? What are the desired skills that will become indispensable in the future, in view of the emerging missions and business needs?

The implementation of an internal audit raises questions essential to the development and performance of the company. 

For example, theanalysis of the points that handicapped a project planning. A collaborator left during the course of the project with rare skills and it was difficult to replace him at short notice. The mission of upskilling is to redistribute skills, to boost them and to give new ones to employees. 

Another example: a manager assignment notices that only one of his managers has the necessary qualifications to take over his role in case of absence. Offering training to the other managers allows him to delegate more often. At the same time, he can also train the manager in cross-functional skills, with a view to accompanying him on more delicate missions and, who knows, taking over his position when the time comes. At Capgemini Invent, for example, assignment managers often have a career as consultants, then as managers before becoming managers assignment.

The brake on turnover

According to INSEE, the phenomenon of staff turnover has not doubled or tripled, but quintupled in 30 years. These are head-scratching figures that show that the business world has a lot to worry about. The new generation of workers has demands. We won't talk about the health crisis again, which has had a real impact on the world of work, especially with the rise and generalization of telecommuting. 

The implementation of training programs limits turnover, since employees become actors in their professional development. Life in the company becomes meaningful again, as employees are no longer stuck with their initial skills. 

In addition, by ending the turnover, the company can grow more serenely. Did you know that the time it takes to recruit and train a highly qualified employee can cost nearly 300% of his or her annual salary? A significant financial loss, when training actions are readily available... 

The brake on boredom, or bored-out

Upskilling is only really effective if it's carried out all year round. So, rather than setting up one-off training courses (which sometimes prove anecdotal for your employees), opt for continuous training. Launching an open training program every month allows you to train your employees in new skills every day. 

Moreover, the objective of upskilling is to increase the skills of the employee on his acquired skills. However, there is nothing to prevent them from gaining transversal skills... such as skills that interest them! Continuous training is also a good way to refresh a workstation, to bring novelty and therefore to arouse the curiosity of the employee. In addition, it helps to counteract quit-quitting, which is a real attack on your profitability.

Upskilling: the future of business

Given that more than half of all existing jobs in 2020 will disappear by 2050, it's essential to renew employees' skills . What's more, according to Pôle Emploi, over 85% of jobs in 2030 still don't exist! Training employees is therefore not only essential to limit staff turnover, or to promise greater well-being within the company. 

With the arrival of new businesses, having talent loyal to the company at your side will allow you to face the arrival of new businesses, to pursue growth and to multiply your chances of resisting new competitors. 

Would you like to find out more? We've got plenty of resources to help you go further.

To complement this topic, read our white paper "Which metrics should you follow to manage your assignment and improve your decision-making?

See also our guides, templates and checklists in the Resources tab.

See you soon at Napta!

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