6) Empowering HRM through Continuous Learning: Designing Effective Upskilling and Reskilling Initiatives

By Nipuni Weerasuriya

“Uncertainty is a significant word that every individual will need to comprehend. The world we live in today have demonstrated how uncertainty is becoming a norm. Various reports are indicating that millions of workforce needs to be ready for the transition which is taking place in the job market globally. The workforce needs to accept that reskilling and upskilling is needed if they want to be relevant and employable.” (Sivalingam, AD, & Mansori, S,2021)

In today's dynamic corporate world, the concept of a static skill set is becoming obsolete. The rapid advancements in technology, automation, and the changing nature of work have led to a shift in the requirements of the workforce. This shift has placed upskilling and reskilling initiatives at the forefront of Human Resource Management (HRM). In this article, will explore the significance of these initiatives, why they matter in HRM, and how organizations can effectively implement them to foster growth and success.

Following infographic  diagram shows the process of Upskilling and Reskilling;

   Upskilling VS Reskilling

The Importance of Upskilling and Reskilling in HRM

“In the new world of work, we may not know for sure which jobs will be destroyed and what will be created, but one thing is clear: Everyone, whatever their age, will at some point have to spend time either re-skilling (learning new skills for a new position) or upskilling (learning current tasks more deeply). Every conceivable job will have new technologies to learn and new personal relationships to navigate as those roles fit and refit into a changing economic landscape. ( Gratton,2019)”

 

In HRM, these initiatives have emerged as essential strategies to ensure that employees remain relevant, adaptable, and capable of meeting the demands of an ever-changing business landscape.

 

•          Adapting to Technological Advancements:

Technology is transforming industries at an unprecedented rate. For HR professionals, this means understanding and utilizing new HR technologies, data analytics, and automation tools. Upskilling and reskilling ensure HR teams are well-equipped to manage these changes efficiently.

•         Mitigating Skill Gaps:

 As job roles evolve, skill gaps emerge. Traditional skills are being replaced by digital competencies and soft skills. Reskilling initiatives enable HRM professionals to address these gaps, ensuring a capable workforce that meets organizational needs.

•          Enhancing Employee Engagement:

 Investing in employees' growth demonstrates that the organization values them. Upskilling and reskilling initiatives boost morale, increase job satisfaction, and reduce turnover rates, creating a positive work environment.

 

The Imperative of Continuous Learning

Continuous learning is the cornerstone of staying competitive in the modern workplace. It facilitates adaptability, fosters innovation, and encourages personal and professional growth. In the HRM domain, embracing lifelong learning has become indispensable, given the dynamic nature of the workforce's skill demands.

World Economic Forum estimates that, by 2025, 50% of all employees will need reskilling due to adopting new technology. Five years from now, over two-thirds of skills considered important in today’s job requirements will change. A third of the essential skills in 2025 will consist of technology competencies not yet regarded as crucial to today's job requirements.(Ling,2022)

By recognizing the inevitability of skill obsolescence, HR departments can foster a culture of learning that empowers employees to take charge of their development. Encouraging them to engage in courses, webinars, and workshops related to their field can enhance their skillsets and job performance. Moreover, this culture sets the foundation for seamless upskilling and reskilling initiatives that cater to ever-evolving business needs.

Transformational Tales: Real-World Success Stories of Upskilling and Reskilling Initiatives

• Unilever

As Unilever placed organizational agility at the forefront of its priorities, the company underwent a transformation in its approach to employee development. The focus shifted towards offering a plethora of opportunities, including training, mentorship, and project involvement that resonated with individual career aspirations. To achieve this, Unilever harnessed the power of an AI-enabled talent marketplace named "FLEX Experiences." This innovative platform seamlessly connected employees with personalized growth avenues, forming a dynamic network of adaptable talent poised to meet the company's evolving needs.

The emergence of the COVID-19 pandemic saw the flourishing of the FLEX Experiences platform, which continued to exert a profound influence even in the face of adversity. The impact was nothing short of remarkable—productivity witnessed a substantial 41% enhancement post-implementation, demonstrating the tangible benefits of this strategic shift.

Notably, a remarkable 70% of assignments now comprise cross-functional teams, fostering collaborative synergy across the organization. Furthermore, the initiative unlocked a staggering total of over 700,000 hours of productive work, underlining the program's enduring effectiveness.

Unilever's journey underscores the power of investing in employee development, propelled by cutting-edge technology and a commitment to fostering agility. Through these efforts, the company not only achieves operational excellence but also cultivates a workforce ready to tackle challenges and seize opportunities on a global stage.

• Mastercard

In the midst of widespread industry upheavals, the financial sector stands out for its remarkable adaptation to the evolving landscape. Faced with transformative changes in standard operational procedures, the industry's embrace of the future of work signifies a pivotal moment. This metamorphosis is underscored by the financial sector's profound commitment to maintaining a highly-skilled global workforce—one that remains interconnected and agile to navigate the dynamic terrain ahead.

“Now that disruption is the new norm, we really need employees to be on top of their game,” notes Lucrecia Borgonovo, Chief Talent and Organizational Effectiveness Officer. “They need to stay current, stay relevant, learn new skills, and become agile.”

In a bold move, the company prioritized unifying its extensive workforce of 24,000 individuals, recognizing the paramount importance of unity and adaptability. With an impressive registration rate of over 75% on their dedicated platform, the company achieved remarkable outcomes. The ripple effects of this endeavor were substantial, resulting in the realization of over $21 million in enhanced productivity and the liberation of an astounding 100,000 hours of additional capacity.

Furthermore, this proactive approach spurred the establishment of a cryptocurrency and NFT (Non-Fungible Token) group. The emergence of this specialized group symbolizes the financial industry's commitment to addressing the burgeoning field of emerging technology, reaffirming their ability to not only stay abreast of change but also lead innovation.The financial industry's journey exemplifies the significance of adaptability and connectedness in today's ever-changing landscape. Through strategic workforce initiatives, the sector has not only harnessed value but also kindled the spark of innovation. This evolution sets a powerful precedent for other industries, showcasing the potency of embracing transformation and ensuring readiness for the future.

• HSBC

HSBC, a stalwart in the financial realm with an illustrious 157-year history, has consistently thrived by adapting its practices to meet evolving customer needs. In an unwavering commitment to ensuring its relevance in the coming century, the institution recognized the paramount importance of equipping its workforce with the essential skills and tools to foster a culture of continuous learning.

Hamish Nesbit, Group Head of Resourcing, notes that “…we now know with greater certainty, what skills sit where and what aims people have gives us a much stronger platform to think about increasing our internal mobility, which in turn retains our global corporate knowledge and builds employee engagement as they start to understand that more and more of their goals and ambitions can be realized within HSBC.”

To embark on this transformative journey, HSBC recognized the necessity of comprehending its current skill landscape. Guided by a cutting-edge workforce intelligence solution, the institution gained invaluable insights into its existing skill set. This vital understanding paved the way for strategic improvements, enabling HSBC to fortify its foundations for a future-proof agenda.The outcomes of this forward-looking initiative were impressive. The institution not only unlocked a remarkable 60,000 units of productivity but also witnessed a notable shift in project assignments. A significant portion of projects were directed towards cross-functional teams, reflecting a newfound synergy and collaboration that is poised to drive the institution's progress.

HSBC's enduring legacy is a testament to its ability to adapt and innovate in an ever-changing financial landscape. By embracing the imperative of continuous learning and equipping its workforce with the tools of tomorrow, HSBC reaffirms its commitment to excellence, ensuring its enduring relevance and success for generations to come.

Conclusion

Upskilling and reskilling initiatives have become paramount in HRM due to the ever-evolving nature of work and technology. By investing in the development of employees' skills, HR professionals contribute to the organization's growth, competitiveness, and adaptability. These initiatives not only empower the workforce but also foster a culture of continuous learning and innovation. As HRM continues to evolve, embracing upskilling and reskilling is not just a choice but a necessity for organizations striving to thrive in the face of change.

References:

gloat.com. (2022). Examples of reskilling and upskilling programs | Gloat. [online] Available at: https://gloat.com/blog/5-successful-examples-of-reskilling-and-upskilling-programs/.

Gratton, LC (2019) New frontiers in re-skilling and upskilling. MIT Sloan Management Review, 61 (1). ISSN 1532-9194

learning.linkedin.com. (n.d.). Difference Between Upskilling and Reskilling | LinkedIn Learning. [online] Available at: https://learning.linkedin.com/resources/upskilling-and-reskilling/upskilling-reskilling.

Li, L. Reskilling and Upskilling the Future-ready Workforce for Industry 4.0 and Beyond. Inf Syst Front (2022). https://doi.org/10.1007/s10796-022-10308-y

Mastercard Center for Inclusive Growth. (n.d.). Realism About Reskilling. [online] Available at: https://www.mastercardcenter.org/insights/realism-about-reskilling [Accessed 22 Aug. 2023].

Sivalingam, Ananda Devan/Mansori, Shaheen (2021). How Organizations Should View Reskilling and Upskilling the Workforce. [S.l.] : SSRN.https://ssrn.com/abstract=3721771

The Conference Board. (2021). HSBC—Leveraging Al for Identifying and Providing Reskilling. [online] Available at: https://www.conference-board.org/topics/AI-HR/hsbc-leveraging-AI-for-reskilling [Accessed 22 Aug. 2023].

Unilever (2019). Unilever launches new AI-powered talent marketplace. [online] Unilever. Available at: https://www.unilever.com/news/press-and-media/press-releases/2019/unilever-launches-ai-powered-talent-marketplace/.