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Upskilling and Reskilling Employees Boosts Productivity and Customer Satisfaction

With top talent looking for growth-focused companies, it’s important to create learning experiences that make training stick. Upskilling and reskilling employees can help you keep them engaged.

While perks like stretch assignments and promotions are great, a company can upskill its employees by providing on-the-job training. This helps to fill knowledge gaps, improve productivity and boost morale.

Retaining Employees

In a startup, employees are key to success. They are the ones who will help your business respond to changing market conditions and boost customer satisfaction. That’s why it is crucial to retain them. You can do this by showing them that you care about their success and growth. This can be done through a number of ways, such as providing empathy or ensuring they have the tools they need to be successful.

Upskilling can also help you diversify your workforce by training existing workers to move into new roles rather than hiring externally. This allows your team to absorb training faster and improves productivity by removing bottlenecks. Plus, it reduces employee turnover and helps you keep pace with technological change. You can even offer career development programs that give employees a chance to earn credentials for their newly acquired skills.

Boosting Productivity

Productivity is essential for startups, and there are several ways to boost it. One way is by incentivizing employees. Another is by implementing processes. This can include creating standardized procedures for certain tasks, which can help employees work faster and more efficiently. This can also reduce the number of errors, which can improve customer satisfaction.

Upskilling can also be an effective way to increase productivity. This can be done by allowing employees to move into different roles within the company or by training them in new skills. This can save time and money, which is especially important for startups.

Upskilling can also be an effective tool for increasing employee retention. Studies have shown that employees who feel valued by their employers stay longer. By offering training opportunities, such as the tracks on Hyperskill, startups can give their employees a reason to stay.

Boosting Customer Satisfaction

Customer satisfaction is a critical factor for startups. Satisfied customers are more likely to return to your business, and they are also more likely to promote your products or services through word of mouth.

Upskilling helps boost customer satisfaction by enabling employees to respond to customer questions and concerns more effectively. Additionally, upskilling helps employees understand how their work impacts customers, which can improve overall service delivery.

Employees are also more satisfied when they know their company values their professional growth. This is why it’s important for startups to offer opportunities to grow their skills and knowledge, such as through stretch assignments or promotions. Yashvi is a dynamic content creator with 5+ years of experience crafting thoughtful, value-packed content for various global audiences. She currently creates content for EdTech brands, specializing in tech, finance, healthcare and B2B topics.

Boosting Morale

When employees feel a company is invested in their career development, they are more likely to stay and become more productive. This can help reduce costs related to employee turnover and recruiting new workers.

This is why it’s important to communicate regularly with employees, letting them know how their efforts are helping the company meet its objectives. It’s also essential to give monetary performance-based incentives like raises and bonuses when possible, as these can significantly boost morale.

In addition to offering learning opportunities, companies can offer career advancement, such as bumping a junior specialist into a senior role with more responsibilities. This helps employees feel valued and can help them keep their motivation high, even in the face of layoffs or a recession. A startup can also create a culture of upskilling by offering training programs that lead to certifications or other credentials, such as GrowthSpace.

Boosting Growth

Upskilling and reskilling help startups adapt to the changing technology landscape. It also helps them stay ahead of the competition by equipping employees with coveted skills that are in high demand.

Upgrading employee skill sets is a great way to boost morale and productivity. It can also help with retention because employees who feel a company supports their career growth are more likely to stick around.

It can also save on hiring costs, as it is more cost-effective to train a team member to fill an open position than to find a new hire. Plus, training internally reduces turnover, which is vital to a startup’s bottom line. Moreover, upskilling can be a great tool to help companies with their diversity, equity, and inclusion efforts as well.

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Why Upskilling Opportunities Are Crucial to Career Progression

Upskilling opportunities are crucial to employee satisfaction and career progression. Employees want to feel that their company is invested in their professional growth, and upskilling can be a great way to show this.

Analytical skills, such as data science and research analysis, are in high demand. Upskilling your employees in these areas can make your organization more competitive and improve your job candidates’ employment prospects.

1. Boost employee satisfaction

A big part of employee satisfaction stems from a feeling that they have a clear career path at work. Offering upskilling opportunities lets employees know that their company cares about their professional development and helps them feel like there is always something new to learn.

Additionally, a lot of workers have lost jobs due to the pandemic and the rapid shift toward automation, so reskilling and upskilling offers them the opportunity to pivot into different roles that they may find more rewarding. Upskilling also enables employees to earn new certifications and postsecondary degrees, allowing them to advance their careers and get higher salaries.

Furthermore, happy employees are more likely to be engaged and do a better job. This translates to higher client satisfaction and loyalty, as well. Plus, upskilling keeps employees updated on the latest trends and technologies in their industry, enabling them to deliver valuable insights and recommendations to clients. In addition, it reduces employee turnover and training costs, as companies have a higher return on investment when they offer ongoing training opportunities.

2. Increase productivity

Learning new skills can be a powerful tool for increasing productivity. New skills can help employees perform more complex tasks or develop more robust solutions, and they can also improve employee morale. In addition, when employees can show that their new skills have increased productivity, they may be able to make a case for a raise or increase in pay.

The key is to offer upskilling opportunities that are relevant to your business objectives and current job roles. This differs from reskilling, which is about developing the skills needed to change jobs or careers within your organization. As the World Economic Forum predicts that 85 million jobs will be replaced by technology by 2025, reskilling becomes more important than ever.

Offering upskilling opportunities that are aligned with your future goals is a great way to boost productivity and retain top talent. Learn how to upskill your employees by enrolling them in Penn LPS Online’s 4-course Ivy League Upskill Certificate.

3. Create a more diverse workforce

Building a diverse workforce is one of the biggest challenges facing businesses today. But upskilling employees gives companies the chance to enrich their diversity efforts from within, without displacing existing workers.

For example, professional services leader PricewaterhouseCoopers offers its employees a series of digital upskilling courses that help them advance in their careers and build the tech skills they need to compete in the future economy. These programs create a growth mindset among employees, which in turn bleeds into the company’s broader culture and work ethos.

Upskilling opportunities also make it easier for older employees to develop their careers, avoiding the threat of being left behind as technology changes the workplace. This internal mobility also benefits women, who disproportionately leave their jobs to take care of family members. Initiatives like returnships, in which professionals who’ve taken a break for caregiving responsibilities re-enter the workforce, are another way upskilling supports gender diversity in technology teams.

4. Boost employee retention

Employees want to know that their employer cares about their professional progression. Upskilling helps employees feel like there is a future for them at the company, which can boost morale and increase productivity.

It also saves the company money in recruitment costs, as it can rely on its internal talent pool rather than external candidates. Furthermore, upskilling creates a pipeline of digitally savvy employees that can be utilized in the future as the company grows and changes.

Upskilling is especially beneficial when it aligns with an employee’s career goals. For example, an entry-level employee may want to one day work their way up to a management position. Upskilling can help them achieve this goal by training them in the skills that are required for managerial roles. This is particularly important because the workforce is rapidly evolving and jobs are becoming obsolete. This means that companies are increasingly prioritizing upskilling opportunities for their employees. This is especially true for millennials and Gen Z workers, who are more interested in growth opportunities than other factors, such as salaries.

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UpSkill Houston Forum Series

While Houston has strong economic fundamentals, there is a gap between employers’ needs and workforce availability. The Greater Houston Partnership, leveraging employer leadership, established Upskill Houston in 2014 to develop a robust pipeline of talent for middle-skill careers that pay livable wages.

Learn more about how this business model is working in Houston from Partnership senior vice president of regional workforce development Peter Beard in the attached workforce development playbook.

Career Pathways

In Houston, thousands of jobs are available that offer lucrative wages, great quality of life and require only two years or less of education or training. Career Pathways connect high school and community college students to those opportunities by connecting their interests, aptitudes, and learning styles with career fields that need them. Pathways help students visualize careers, connect them to courses they can take now, and provide real-world experiences. To start exploring career pathways, explore the Curriculum & Registration Guide and speak to your counselors or pathway coordinators.

Businesses are working alongside the community and education sectors to prepare Houstonians for careers that will lead to livable wages and lasting careers. Through industry-led collaborations, the initiative is addressing the information and resources barriers, along with structural and institutional challenges that contribute to the middle skills gap of occupations that require education and skills beyond a high school diploma but less than a four-year degree. Through a business-led approach that puts employers at the center of collaborative efforts, UpSkill Houston has proven itself as a model for other communities seeking to build sustainable talent pipelines.

Employer Partnerships

To compete globally, businesses require a talented workforce. In response to this challenge, Greater Houston Partnership – with employer leadership – established UpSkill Houston and Houston Back on Track, jobs-first initiatives focused on building talent pipelines in high-demand occupations in the industries that drive the region’s economy.

To do this, the Partnership focuses on engaging employers to prioritize occupations and align their efforts with education and community stakeholders. This approach provides a structure, resources and convening opportunities to foster collaboration among business, education, and community-based social service organizations.

Upskilling enables workers to learn new skills that improve their job performance, increase productivity and reduce costs through more efficient and effective processes. It also increases employee engagement and retention when employees know that their employer is invested in their professional development. The Partnership employs a business-model called Talent Pipeline Management (TPM) to support and amplify this work. This model builds regional leadership coalitions to prioritize industries, develop career pathways and identify education and community partnerships that are demand driven.

Community Engagement

The Forum Series features conversations with regional business, education and community leaders along with high profile thought leaders on key workforce issues facing the Houston region. This event series supports and advances the UpSkill Houston initiative’s work to help employers identify the skills they need for workers to be successful, provide relevant information about careers and pathways and drive effective career guidance.

The Greater Houston Partnership partnered with local educators and community organizations to launch UpSkill Houston, an employer led initiative that connects people to careers in middle skill jobs – occupations that require more than a high school diploma but less than a four year college degree. The goal is to increase economic opportunity and mobility for area families by focusing on attracting, training and employing individuals into these in-demand occupations. During the first forum, panelists Andrea Hodge (TRIO Electric), Tammy Newman (JPMorgan Chase) and David King (INEOS) shared their in-house apprenticeship programs that support career re-skilling for individuals and create talent pipelines for industry.

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Upskilling at McKinsey

Upskilling is a key workplace trend that facilitates continuous learning and helps employees advance in their careers. It also helps close the digital talent gap and allows companies to fill jobs with specialized skillsets.

Upskilling is different from reskilling, which involves teaching new skills that help an employee perform their current job more effectively. Upskilling is often facilitated by training programs, such as courses offered by Penn LPS online and mentorship programs.

What are the key drivers?

The world of work is in a state of epochal transition. Digitization, automation, and advances in artificial intelligence are transforming jobs. By 2030, as many as 375 million people—or 14 percent of the global workforce—will have to switch occupations or acquire new skills.

In a McKinsey survey, 87 percent of executives reported having skill gaps in their workforces. But fewer than half of them had a clear strategy for filling these gaps.

To win the talent battle, companies need to accelerate their reskilling and upskilling efforts. Leaders who succeed in this arena have a sharp view of the talent required to build future value and are intentional about finding both top talent and adaptable learners.

They also use digital talent-marketplace platforms to connect supply and demand. They design learning journeys that can help displaced workers find new career paths. And they make reskilling and upskilling an integral part of their corporate social-impact programs. Michael Chui is a partner in the San Francisco office, Mena Issler is an associate partner, Roger Roberts is a senior partner, and Lareina Yee is a senior partner.

What are the skills gaps?

The COVID-19 pandemic brought skill gaps to the forefront, and respondents now recognize that filling them is more urgent than ever. They are more likely to cite reskilling as their most important action to take than they were in the run-up to the pandemic (Exhibit 1).

Companies need to focus on future skills—those that already exist, like agile working and digital interaction, or will develop over time, such as blockchain technology development. They must also address current skills gaps by focusing on training that will enable employees to perform their jobs more effectively, particularly soft skills, which are critical as distributed teams become common.

In order to identify which areas of their workforce require more training, companies need to conduct a capability gap analysis. This is a process that requires a mix of tactics, including reskilling, retraining, and providing more learning opportunities. It is essential that the right training is provided to employees, as failing to do so can lead to a decline in performance.

What are the learning opportunities?

McKinsey offers many opportunities to learn throughout your career, starting with our One Firm Onboarding program, which you can tailor based on the areas of development you want to focus on. You’ll also have access to a broad range of online and experiential learning programs — some are self-directed and others, like our Tech Week, help you build new skills through a combination of immersive experiences and online resources.

You’ll be thrown into the deep end your first few engagements, but don’t worry — your colleagues are always available to help. And if you get stuck, there’s our global Helpdesk — the rule is to call them for any IT issue or Excel question that can’t be solved by asking your colleague. And of course, you’ll have countless conversations with clients where you can apply what you’re learning. The result is a continuous cycle of improvement and development — one of the reasons why ex-McKinsey consultants are so highly sought after on the job market.

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