In the fast-paced world of business, stagnancy equates to regression, and regression paves the path towards business oblivion. The million-dollar question plaguing businesses today is irrefutably:
“To upskill, to reskill or to hire skilled employees – which way should we navigate?”
But before we delve into answering this question, let us briefly discuss what these terms mean.
Understanding the Terms: Upskill, Reskill, and Hire Skilled Employees?
Upskilling refers to the practice of teaching current employees additional skills, allowing them to fill in more substantial roles within the company. Simultaneously, reskilling means training employees in new skills, thereby enabling them to undertake entirely different roles. Hiring skilled employees, on the other hand, involves bringing new talent on board that already possesses the skills necessary for particular roles.
So which option should businesses lean towards? The truth is, there is no one-size-fits-all answer. The approach varies depending on multiple factors. Let’s break them down.
Corporate Strategy vs. Workforce Strategy: The Balancing Act
Whether to upskill, reskill or hire new talent very much depends on a company’s corporate strategy. How does your current workforce align with your corporate goals? If the obstacles to your progress are a lack of skills in your current workforce, then upskilling or reskilling may be the best strategy. However, if you need expertise quickly, hiring skilled professionals might be more efficient.
Cost Consideration and Benefit Analysis
From a purely financial perspective, upskilling existing employees can be the most cost-effective route for companies. Planning and implementing hiring processes can be expensive and time-consuming. But this doesn’t mean you should exclude hiring from your strategy. The key is to run a thorough cost-benefit analysis for each route.
FAQs
Q: What is the key benefit of upskilling and reskilling?
A: Upskilling and reskilling bridge the skills gap within an organization, and they often result in higher employee satisfaction and retention rates.
Q: What is the advantage of hiring new skilled employees?
A: Hiring brings fresh perspectives into an organization. It can diversify the skill mix, foster innovation, and accelerate growth.
So, where does the balance lie?
That’s the question we’re going to answer in Part 2 of this article. Based on expert insights and study analyses, we’ll provide you with guiding principles to help make that decision. Stay tuned!
Further Thoughts to Ponder
Is the cost of reskilling higher than the cost of recruiting, hiring, and onboarding new employees, or does it pay off in the long run? How does your decision affect employee morale and company culture? What is your company’s priority – retaining existing staff, attracting new talent, or a mix of both?
Over to You?
Taking the first step towards change can be challenging, but rewarding in the long haul. As business leaders, how are you framing your workforce planning decisions? We’d love to hear your thoughts and experiences. Stay tuned for Part 2 of our deep dive into the reskilling, upskilling, and hiring debate. Until then, let’s keep the conversation going!