Book Recommendation: “The Expertise Economy: How the Smartest Companies Use Learning to Engage, Compete, and Succeed” by Kelly Palmer and David Blake

In the face of rapid technological advancements and shifting workplace dynamics, the importance of reskilling and upskilling as a retention strategy has never been more apparent. As we navigate 2024, companies are increasingly recognizing that investing in the continuous development of their workforce is not just a strategy for growth but a necessity for survival.

Organizations are confronting unprecedented challenges in talent acquisition and retention, exacerbated by phenomena like “The Great Resignation.” The U.S. Bureau of Labor Statistics reports that over 47 million Americans quit their jobs in a single year, reflecting a deep-seated desire for job fulfillment and career development opportunities. In this context, the Society for Human Resource Management (SHRM) estimates that employee turnover can reach as much as 50 percent in the first 18 months of employment, with the cost of replacing an employee amounting to six to nine months of the employee’s salary.

To effectively address these challenges, organizations must attune themselves to the evolving needs and aspirations of their workforce. A staggering 94 percent of workers express a willingness to stay with a company if it invests in their career development. Particularly among younger generations like Gen Z and Millennials, learning and development opportunities are not just perks but pivotal factors influencing their decision to stay with an employer. Surveys indicate that these demographic cohorts prioritize personal and professional growth, with a substantial number of respondents indicating that learning and development opportunities were the top reason for choosing their current organization.

In response to this evolving landscape, companies are urged to deploy structured and comprehensive learning and development programs that encompass a range of training methods, including live, virtual instructor-led training and e-learning videos and courses. These programs are instrumental in fostering employee engagement, satisfaction, and retention while simultaneously equipping the organization to navigate future challenges effectively.

As the nature of work continues to transform, it is projected that approximately 40 percent of the workforce will require reskilling in the near future. The rapid proliferation of skills required for a single job, coupled with the obsolescence of one-third of the skills that appeared in an average job posting in 2017, underscores the urgency for reskilling and upskilling initiatives. The World Economic Forum estimates that over half of all employees (54 percent) will require significant reskilling by 2022, a trend that is expected to persist and intensify.

In 2024, as we confront these dynamic changes, the imperative for organizations is clear: to invest in reskilling and upskilling as a cornerstone of employee retention strategy. By doing so, companies not only enhance their competitiveness but also affirm their commitment to the growth and development of their most valuable asset—their people.

For further insights and detailed analysis on reskilling for retention, refer to the comprehensive articles from industry experts: