How to Close the Skills Gap by Reskilling Employees

As the marketplace changes, so should your team's skillset. In fact, a 2022 survey from PwC found that 39% of employees don't feel they're getting sufficient training in digital and technology skills from their employers. In some cases, employers may seek new people to fill gaps—but reskilling employees may be an even better and more cost-effective approach.

Reskilling means to train current team members for the new skills your business needs. You may need to reskill employees if your business shifts strategies, undergoes economic pressures, eliminates jobs due to automation or experiences a large-scale disruption. If you're ready to get started, we've outlined how to implement a reskilling program for your business.

How to start reskilling employees

First, identify your skills gap. Note the changes happening in your industry and the requirements your future workforce will need to master. Create a new job description for the role as if you were hiring a new employee.

Next, identify or have HR identify any of your current employees who has some or all of these skills. Determine where other employees' current skills fall short so you can begin to design a program to close the gaps.

Create a training program

Reskilling the workforce requires providing a training program for employees. It's also important to consider providing age-inclusive training and development opportunities. Depending on the job, you may find reputable third-party industry courses that fit your business needs. You can look for trainings online or through local libraries and schools. Many businesses use learning management systems that automate the training process, making it easy to deliver.

On-the-job training

Another way to cost-effectively skill employees is through on-the-job training. If any of your current employees have the correct skills, pair them with a colleague who's open to improving their skillset. The team member who's learning the new skill can shadow their coach—observing at first, then performing the new skill themselves with oversight.

Mentorship

Another approach is to combine training programs with coaching. Set up the foundational knowledge by having employees attend formal classes, then provide a coach who can answer questions and help build confidence. For instance, building a women's mentorship program may help women in your business adapt and learn more critical skills for their roles.

Measuring success

Whatever type of training you implement, be sure to measure the success of your reskilling program so you know if an employee is ready to take on the new role and if the training is effective. Learning management systems, for example, often include quizzes that measure the employee's comprehension and progress. You can also create a rubric for a coach to complete as they work with each of their fellow employees.

Choose the right candidates

Some employees may be more suited for reskilling than others. Select the right candidates by choosing employees who already go above and beyond in their roles and are true team players. They'll be more likely to embrace the challenges of learning a new role and may share ideas on employee engagement strategies that could motivate the rest of staff.

When other team members see the benefits colleagues experience from learning new skills, they may be more interested in the program. However, not every employee may embrace the idea. If their job is at risk of being phased out, be sure to make that clear. Also consider that forcing an employee who doesn't want to participate may backfire.

Before you launch a training program for employees, ensure they can handle tasks outside their normal scope if another employee isn't available due to sickness, vacation or leaving the company without notice. You may consider building a coverage plan and communicating support for your employees so they're set up for success while training and learning new skills.

The bottom line

Reskilling is often less costly than recruiting, hiring and onboarding new employees. It benefits staff by providing greater job security, opportunities for professional development and a new career path. When you create a company culture that embraces learning and growing, you'll be more likely to attract employees who will embrace reskilling.

If you're ready to implement a reskilling program in your business, talk to a business banker about the best strategy for investing in one of the available solutions.