Navigating Transitions: Financial Benefits of Re-training and Re-deploying Employees Instead of Firings
In today's rapidly evolving technological landscape, companies are increasingly adopting big data, cloud computing, and AI technologies, with the World Economic Forum predicting that 75% of companies will do so in the next five years [1]. However, this shift brings about challenges, particularly in terms of workforce modernization and the potential for layoffs.
A recent trend has seen layoffs primarily affecting non-technical departments such as human resources, recruiting, and marketing. Yet, these layoffs do not necessarily lead to greater profits but do incur hidden costs, such as the loss of valuable institutional knowledge held by tenured employees [2].
To address this issue, companies can modernize their workforce and reduce layoffs through strategic reskilling and redeployment. Here are four key approaches:
1. Invest in Continuous Upskilling and Reskilling: Organizations need to embrace a culture of lifelong learning to close skill gaps and prepare employees for future roles. Training programs should focus on emerging technologies like AI, blockchain, data science, and cloud computing. Encouraging employees to develop hybrid skill sets that combine technical expertise with soft skills such as problem-solving and adaptability is crucial [3].
2. Leverage Internal Talent for New Roles: Instead of hiring externally for new technical or hybrid positions, companies can retrain existing employees who already understand company culture and operations. This approach not only fosters employee loyalty and engagement but also reduces the time and cost of recruitment [4].
3. Use Data-Driven, Personalized Workforce Communication: Modern communication strategies that deliver personalized, role-relevant messages through mobile-first platforms can enhance employee engagement and the uptake of training initiatives [5].
4. Align Workforce Modernization with Broader Business and Social Goals: Reskilling efforts should address not only technical competencies but also broader issues like employee well-being, compensation fairness, and stress reduction, especially in high-demand sectors such as healthcare [6].
Reskilling can enable existing employees to transition into new roles, even if there is no direct tie between their original role and the new role. For instance, a marketing specialist with coding skills in HTML could quickly learn CSS or other web development skills, or a great customer service representative with empathy and problem-solving skills could become a UX designer [7].
Building a workforce that's open to change and willing to consistently develop fresh skills can future-proof organizations. In today's AI and tech-driven world, every industry is a tech industry, and HR leaders must be proactive about planning for the future and building a resilient pipeline of employees with modern, in-demand tech skills [8].
Moreover, the Bureau of Labor Statistics (BLS) forecasts that high-tech employment will grow 13% from 2020 numbers by 2030 in the U.S. alone [9]. Investing in reskilling can help organizations seize opportunities while competitors are laying workers off, creating a sustainable tech talent approach.
In conclusion, by focusing on systematic reskilling aligned with future business needs, empowering internal mobility, and maintaining open, effective communication, companies can modernize their workforce to meet technological and market changes while minimizing layoffs and preserving organizational knowledge and employee morale.
References: [1] World Economic Forum. (2021). The Future of Jobs Report 2020. [2] McKinsey & Company. (2020). The social impact of automation in the retail sector. [3] Deloitte. (2020). Building a resilient workforce for the future of work. [4] Walmart. (2020). Upskilling for the Future: Preparing Workers for New Roles in the Retail Industry. [5] LinkedIn. (2020). The Talent Development Playbook: A Guide for the New World of Work. [6] Harvard Business Review. (2020). The Four Key Elements of a Successful Reskilling Program. [7] Gartner. (2020). The Future of Jobs Report 2020: A Look at the Top Skills Through 2030. [8] Forbes. (2020). The Future of Work: Why Every Industry Is a Tech Industry. [9] Bureau of Labor Statistics. (2020). Employment Projections: High-tech occupations.
- In the context of the rapidly advancing technological landscape, companies are urged to invest in continuous upskilling and reskilling, focusing on emerging fields like data science, AI, blockchain, and cloud computing, to close skill gaps and prepare employees for future roles.
- Engaging in reskilling efforts can empower employees to transition into new roles, even in dissimilar fields; for example, a marketing specialist with coding skills could potentially become a UX designer or a customer service representative with empathy and problem-solving skills could learn web development skills.
- To foster employee engagement and the uptake of training initiatives, companies can adopt data-driven, personalized communication strategies that deliver role-relevant messages via mobile-first platforms.
- Instead of hiring externally for technical roles, companies can reap benefits by retraining existing employees who already understand the company culture and operations, fostering employee loyalty, engagement, and reducing recruitment costs.
