Reskilling more important than hiring, say Aussie businesses

A recent survey has revealed that leaders are looking towards reskilling as opposed to hiring when boosting their workforce.

Fifty-five per cent of Australian businesses reported productivity as a top business goal over the next three years, and just 28 per cent said increasing employee headcounts was theirs, according to a Go1 survey.

The new era of artificial intelligence (AI) and automation is a key driver in these attitudes, said Go1, as 57 per cent said they’re looking to improve learning and development processes, and 51 per cent are taking the time to boost employee skills.

“AI has kickstarted a reskilling revolution in Australia,” said Andrew Barnes, co-chief executive and co-founder of Go1.

“Where compliance was once the primary goal of learning and development programs, companies are moving beyond that narrow approach and now recognise reskilling as a strategic imperative to develop talent not readily available in the market and fill skill gaps to build competitive advantage.”

Enhancing employee capability was noted as the main reason for this increased attention to development, with 53 per cent of respondents agreeing. Following this was building career paths for employees at 47 per cent, encouraging employees to learn new skills, leveraging learning and development to close skill gaps, and meeting compliance standards, each at 45 per cent.

Go1 believes this sudden need for learning and development opportunities in business has been sparked for a few different reasons. One factor is the ageing workforce, which will require a new generation of skilled workers to take charge.

Another is the reported growing need for employees to develop company-specific skills. There are a variety of ways organisations are going about this, with 81 per cent of businesses using an online-based platform for their training, learning and development programs.

Mr Barnes continued: “Of the companies we spoke to, many said persuading employees to embark on a reskilling program is a top challenge they face. This is understandable, as these initiatives require learners to make a major time investment.”

“To increase uptake, it’s crucial to communicate a clear strategy on the benefits of these learning and development programs for employees and managers and to design a learning experience that employees actually enjoy and is integrated into their workflows so it’s easy to access.”

Some have been slower to keep up with the change than others, especially the manufacturing industry. While manufacturing was found to be more likely to have a dedicated learning and development champion, 42 per cent of companies in this industry still use paper-based forms for their employee training.

Companies that fail to give learning and development the attention it needs can run the risk of losing engagement with employees and hitting a stagnation of skills. With the current talent market severely reducing the number of skilled workers available, prioritising upskilling can be a great way to replenish skill sets within an organisation.