In today’s fast-paced, technology-driven world, businesses face increasing pressure to stay competitive and agile. Digital transformation, technology innovation and evolving customer demands are reshaping industries, and companies must adapt to survive. One of the most powerful ways organizations can ensure they remain ahead of the competition is by investing in their most valuable asset: their people.

For Learning and Development (L&D) leaders, this challenge presents both an opportunity and a responsibility to equip their technology workforce with the skills needed to drive organizational success. Therefore, digital upskilling training and reskilling technology talent have become strategic priorities for many forward-thinking organizations. This is because, as technology continues to rapidly evolve and new tools emerge, companies need to ensure their workforce is equipped with the latest technology-related skills to tackle emerging challenges and remain successful.

In fact, according to a global survey conducted by Deloitte that polled more than 500 directors and c-level executives, more than 75% of respondents regard skills and talent availability as a major source of risk to their business success. And, according to The World Economic Forum’s (WEF) Future of Jobs Report 2023, employers believe that 44% of workers’ skills will be disrupted in the next five years and that six in 10 staff members will require training before 2027.

Given the importance of upskilling and reskilling on the future of work, below, we provide a deep dive on the topic. Read on to learn more about these key initiatives, why they need to be a priority and the benefits associated with each.

Understanding Upskilling and Reskilling
Before diving into the benefits, it’s important to define what upskilling and reskilling mean in the context of technology talent:

· Upskilling refers to the process of teaching employees new skills that enhance their existing expertise and enable them to perform their current jobs better or take on new responsibilities with ease. In the context of tech talent, upskilling could involve teaching a software developer new application development skills and programming languages or training information technology (IT) specialists in advanced cybersecurity practices.

· Related but somewhat different, reskilling involves teaching employees new skills that enable them to switch to a different role or function within the organization. For example, reskilling a marketing professional to take on a data analytics role or training a traditional IT worker to become proficient in generative AI (GenAI) and machine learning (ML) skills.

Why Upskilling and Reskilling Should Be a Top Priority for L&D Leaders
L&D leaders across industries are increasingly recognizing the importance of upskilling and reskilling their employees for two key reasons:

1. The first is the pace of technological change. In the tech world, IT skills become outdated quickly as new technologies, tools and methodologies emerge at breakneck pace. As such, employees may find that their current expertise no longer aligns with their roles or their company’s strategic goals. Continuous technology training, development and upskilling ensures employees stay relevant in their current positions, while reskilling the existing technology workforce offers a way to pivot to new areas of opportunity within the organization.

2. The second reason is the IT talent shortage. We wrote a previous blog post specifically on this topic. There continues to be a global shortage of skilled technology workers and many organizations struggle to fill positions requiring advanced IT skills. Upskilling and reskilling existing employees help close this IT skills gap, making the most of the tech talent already within the company rather than relying solely on external hires, which is often times a timely and costly process. By offering digital upskilling and reskilling training, organizations can create a skills-first technology workforce that adapts to the evolving needs of the business.

The Top Benefits of Upskilling and Reskilling for L&D Leaders
Upskilling and reskilling are crucial to business success and provide many benefits along the way, including:

1. Increased Productivity and Performance – Upskilling and reskilling employees boosts productivity by enabling them to perform tasks more efficiently and effectively. For example, software developers trained in new coding languages can write code faster and with fewer errors, while employees skilled in automation tools can streamline repetitive tasks, freeing up time for higher-value work. This improvement in individual performance contributes to the organization’s overall goals and bottom line.

2. Filling Skills Gaps and Addressing Talent Shortages – With the global shortage of skilled IT workers, upskilling and reskilling provide an effective solution to address skills gaps within the workforce. L&D leaders can bridge these gaps by offering targeted training, such as digital academies, rather than relying solely on external hires, making it a cost-effective approach to build the future IT technology workforce compared to recruiting, onboarding, and training new tech talent.

3. Improved Employee Retention and Job Satisfaction – Employees are more likely to stay with companies that invest in their professional growth. Upskilling and reskilling programs empower employees to take on new challenges, fostering a sense of purpose and engagement. This investment in career development increases loyalty, reduces attrition (and the cost associated with it from a time and money perspective) and contributes to a positive company culture, ultimately benefiting organizational stability.

4. Boosted Innovation and Creativity – Exposure to new skills and technologies through upskilling and reskilling programs sparks innovation and creativity within organizations. For instance, employees trained in AI skills or ML skills can bring fresh insights. Similarly, employees with diverse skill sets may approach problems from different angles, leading to more creative solutions. and a culture of continuous learning and innovation. Organizations that invest in continuous learning create a culture of innovation, where employees feel empowered to try new technologies, share new ideas and challenge the traditional ways of doing things.

5. Increased Organizational Agility – Because we are in an era of rapid technological change, organizations must be able to adapt quickly to shifting market demands. Upskilling and reskilling help organizations build this agility by creating a flexible workforce that can pivot as needed, when needed. When employees are equipped with a broad range of skills, they can take on new roles and responsibilities within the organization. This allows the company to respond quickly to new opportunities, whether it’s adopting a new technology, launching a new product or expanding into a new market, making them even more competitive.

6. Cost-Effective Talent Development – Investing in upskilling and reskilling can be more cost-effective than hiring externally. Recruiting new talent is often time-consuming and expensive. By investing in current employees, organizations can more cost-effectively tackle talent development solution while also reaping long-term benefits. Moreover, a company with a strong culture of upskilling and reskilling will likely find that its technology workforce is more adaptable and capable of growing with the organization’s changing needs, reducing the need for frequent external hires.

The Return on Investment (ROI) Organizations of Upskilling and Reskilling  
The benefits of upskilling and reskilling technology talent for L&D leaders are clear: improved productivity, enhanced innovation, better employee retention, increased organizational agility, and overall, a more cost-effective process. These advantages contribute to a stronger, more resilient organization that will be able to maintain a competitive edge.

In today’s competitive business environment, L&D leaders that fail to invest in the continuous development of their technology workforce risk their organizations falling behind. It’s evident those companies that prioritize upskilling and reskilling will be better equipped to meet challenges head-on, unlock new opportunities and achieve greater growth. Investing in your tech workforce’s development is not just a nice to have – it’s a must have.

At Revature, we are committed to helping organizations accelerate their technology workforce transformation by disrupting the talent training and acquisition status quo, empowering businesses around the globe to think differently about skills development and take a more strategic and sustained approach to cultivating the right tech talent to support their business objectives. The company’s Total Talent Solution provides organizations with a more holistic approach for building a skills-first technology workforce. To learn more about how we can help your organization upskill and reskill its employees, please contact us today.