Skills development
Engagement

Explode your profitability with upskilling

November 5, 2022
6 min
Explode your profitability with upskilling

According to the words reported by Les Echos Executive at the Davos forum held by PwC in January 2020,upskilling is a "key lever to overcome the talent shortage" in companies. With a skills shortage growing every day in the labor market (and mainly in the consulting sector), training is becoming an obligation and no longer an option. In an era marked by chronic turnover, Big Quit or 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 is carried out all year round. So, rather than setting up one-off training sessions (which sometimes turn out to be anecdotal for your employees), prefer continuous training. Launching an open training program every month allows you to train your employees on 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

Knowing that more than half of the jobs existing in 2020 will disappear by 2050, renewing the skills of employees is essential. What's more, according to Pôle Emploi, more than 85% of the jobs in 2030 do not yet exist! Training your employees is not only essential to limit turnover or to promise more well-being in 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. 

Estelle Barthés
Content Manager

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