In the rapidly changing world of work, corporate training is no longer optional but a critical component for companies that wish to stay competitive, particularly in meeting the demands of their workforce. With new technologies, shifting consumer preferences and a dynamic job market, organisations must invest in their employees’ continued learning and development.

Organisations can do this in three main ways: contracting a third-party training provider to supply customised training solutions, relying on the human resources department to conduct training in-house, or giving employees time and a training allowance they can use to take upskilling and reskilling programs and direct their learning.

Each approach has advantages and disadvantages, but that is a discussion for another day.

Regardless of the method they use, companies must upskill and reskill their people, from rank-and-file employees to top executives.

Upskilling and Reskilling

Upskilling and reskilling are both attainable through employee training and development programs. They are similar but not the same.

On the one hand, upskilling refers to improving or enhancing existing skills, usually to keep pace with new developments or more advanced job requirements. It refers to building a higher proficiency and competency in one’s skill sets so they can become better at their job.

Reskilling, on the other hand, refers to acquiring completely new skills or different skill sets, often in response to changes in technology, the market, and the demands of the role. It can involve more significant changes to an individual’s skill set, such as learning a new language or acquiring technical expertise in a new field.

Upskilling essentially involves building on people’s skills to make them better at their current roles, while reskilling requires equipping people with new skills to respond to evolving organisational requirements.

 Both can increase an individual’s value to their organisation and lead to several benefits.

Improved Employee Performance and Productivity

Corporate training allows employees to build on existing skills and learn new skills. They can be used to address employee performance deficiencies and help organisations strengthen or reinforce their employees’ strengths.

After QuickBooks training, for instance, an accountant will become more proficient and thus faster at using the software. This leads to a cascade of efficiency improvements.

Since the accountant is more prompt at inputting information, all the other employees and departments waiting for information from them will get updated much faster and thus create reports, glean insights and make decisions much quicker.

Likewise, after training, a director who already has good leadership skills can gain a better grasp of leadership theory and update their arsenal of people management tools. This can only make them better equipped and more capable of leading their department.

Additionally, training can help organisations counter the natural decay of knowledge. Knowledge degrades over time.

The half-life is a concept related to decay. In the context of knowledge, it is the amount of time half of what one knows is replaced, is rendered irrelevant or becomes obsolete.

Given the rate at which the volume of knowledge is increasing or doubling (estimated to be 18 months, but some put it at 12 hours), it is not surprising that the half-life of knowledge is progressively becoming shorter.

This is why skills you do not regularly use seem to “rust”; you become less proficient at something you do not regularly do or practise.

A web developer who has not used cascading style sheets (CSS) for a while will not be able to create the CSS for a website as quickly as they did when they used to write CSS code daily. Undoubtedly, they will still be able to accomplish the job, but it will take them time, which means the decay of knowledge hurts performance or productivity.

Since training can address skills deficiencies, build on employees’ strengths, and counteract the decay of knowledge, it can lead to better job performance and increased productivity.

Increased Competitiveness and Market Relevance

Upskilling and reskilling can help organisations stay relevant in a rapidly evolving market. Companies that invest in the learning and development of their employees are better equipped to adapt to new trends and technologies and are more likely to remain competitive in their industry.

For instance, the advancements in eSIM technology represent exciting opportunities for mobile network operators. However, if MNOs do not train their leadership and employees on eSIM, the eSIM provisioning platform, entitlement servers, and other components of the eSIM ecosystem, they will not maximise eSIM benefits.

Data from a technology consulting company shows that training programs have a discernible impact on the bottom line. Specifically, the data indicate that sales personnel who have successfully undergone sales and enablement training have higher quota attainment and conversion rates.

In a series of studies, the American Society for Training & Development (ASTD) found that investing in employee training can lead to increased returns.

Companies that invested an additional $680 in training per employee experienced a 6% increase in their total returns in the following year. Likewise, those who spent an average of $1,595 per employee on training experienced gross profit margins 24% higher than companies that spent only an average of $128 per employee.

Better Retention and Recruitment

Upskilling and reskilling can positively impact employee well-being and job satisfaction.

Employees who receive training feel valued and recognised for their contributions, leading to improved job satisfaction and a more positive perception of their work environment.

This means training results in more engaged and happy employees. This, in turn, has positive implications for employee retention. A paper published in the European Journal of Training and Development confirms that training satisfaction is positively associated with work engagement and negatively related to turnover intention.

Likewise, companies with employee training and development programs are more attractive to job applicants.

Companies with employee training and development programs are more attractive to potential employees. As long as they provide sufficient compensation and benefits, they should be able to hire faster for their open roles than organisations that do not invest in employee training.

Employee Training and Development: An Essential Investment

Corporate upskilling and reskilling are no longer nice-to-haves but critical components of any successful organisation.

Organisations can accomplish this through a mix of strategies. Thus, a company in the United Arab Emirates can outsource training to a third-party training provider, let HR design and conduct learning programs in house, or provide employees with the budget and paid time off to attend short-term courses and register for upcoming conferences in Dubai.

Companies that invest in employee learning and development can expect better performance, increased competitiveness, improved employee well-being and job satisfaction, and higher rates of retention and recruitment.

The benefits of upskilling and reskilling are numerous and far-reaching, and companies that ignore them do so at their peril.