52 NOVEMBER / DECEMBER 2023 HUMAN RESOURCES In addition to its devastating impact on human health, the COVID-19 pandemic hit businesses hard in many ways. Staffing was a major problem area. All sectors, including the financial services industry, lost employees to sickness and shutdowns. In addition, when the pandemic restrictions began to loosen, many workers chose not to return to work. Even today, the Great Resignation1 is an ongoing headache for hiring managers. Monthly staff resignations have remained above four million since September 2021. Turnover in banks climbed to 23.4% in 2022, increasing workforce gaps. One way firms can bring back and retain needed employees is to implement upskilling and reskilling programs. In today’s fast-paced and rapidly evolving world, upskilling and reskilling employees have become essential for organizations to remain competitive and relevant. Why Upskill or Reskill Employees The World Economic Forum and a McKinsey Global Survey2 found: • 50% of all employees will need reskilling by 2025; • 87% of organizations say they face skill gaps now or will in the next few years; and • 40% of workers’ reskilling will take six months or less. When employees are upskilled or reskilled, they become more efficient and effective in their roles. They gain knowledge of new tools and techniques, which can improve the quality and speed of their work. As a result, employees are more productive, which translates into greater efficiency and profitability for the organization. Upskilling and reskilling are also effective ways to retain talented employees.3 When employees feel valued and supported, they are more likely to stay with their current employer. Investing in the professional development of employees sends a message that the organization cares about its employees and their future growth. Upskilling and Reskilling Why employee professional development is key to business success • 94% of employees say they’d stay at their company if managers invested in their careers. • Younger workers say professional growth was the top reason for choosing their current company. • Gen Z says career growth is one of the top three most important job benefits. Upskilling and reskilling can also benefit customer satisfaction. Employees who are upskilled or reskilled are better equipped to handle complex customer issues and provide solutions quickly and efficiently. This can lead to higher customer satisfaction and loyalty, which can ultimately benefit the organization’s bottom line. These skills also promote innovation and creativity within an organization. When employees are given the opportunity to learn and grow, they become more creative and willing to take risks. This can lead to new ideas and approaches, which can improve the organization’s products, services and processes. Upskilling vs. Reskilling Though they sound similar, upskilling and reskilling serve different purposes and result in different outcomes. Both allow companies to utilize internal talent instead of relying on external hiring. Companies utilize upskilling to prepare for the future and adapt to changing demands. For example, managers might hold training events to help employees learn new skills in preparation for a promotion or new responsibilities. Upskilled employees often keep the same job with added duties related to their newly discovered competencies. Similar to upskilling, reskilling involves training employees to take on different responsibilities or a new job. Reskilling typically includes teaching lateral skills similar to what the employee is already doing. A reskilled employee typically moves to a new, lateral position. Financial Services Career Paths The financial services sector works with our changing economy and market demands every day, and it’s OnCourse Learning is an associate member of the Indiana Bankers Association and one of the IBA’s virtual education providers.
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