Instead of firing and rehiring, could reskilling existing staff be the answer to business success?
According to latest research, employers could save up to £50,000 by reskilling employees as opposed to hiring new talent in their place.
What is the cost difference?
In a recent report by the Financial Services Skills Commission (FSSC) and PwC UK, it was revealed that reskilling a financial services employee costs on average £31,800.
In contrast, the ‘redundancy and rehire’ approach brings an average cost of £80,875. This is a significant leap in costs that employers should keep in mind.
Regarding larger firms, such as those with 30,000 employees, it was discovered that onboarding and employee turnover cost roughly £57.3 million per year.
What are the benefits?
Reskilling brings along a wide range of benefits for both employers and their employees, as well as leaving a lasting positive impact on the business.
These benefits include:
Reskilling vs Upskilling
You may have heard of upskilling as well as reskilling, but both terms slightly differ from one another.
Upskilling, in a nutshell, is training and building the skills of an employee in their current role. In contrast, reskilling is preparing them and giving them the tools to fill a new role entirely.
According to research, 74 per cent of CEOs are worried about discovering the right skilled workers. It’s always been a challenge for companies, but even more so as we prepare to enter a post-pandemic environment, where the face of work has changed significantly.
Therefore, reskilling is a great approach to take.
Where should you begin?
In our current climate, industries are changing rapidly, meaning employers and their employees need to adapt. So, where do you start?
First and foremost, it’s important to evaluate which skills are helping your business perform at its best, and where you may be lacking. For example, many businesses are relying heavily on digital technology at the moment, which some employees may be less familiar with than others.
Consider what your company needs to progress and who on your team would benefit from reskilling. Looking internally might be just what you need.
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