Upskilling: Helping workers survive workforce disruption

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  Quantumrun Foresight
• October 6, 2022

Insight summary

The rapid job losses in hospitality, retail, and fitness due to COVID-19 lockdowns sparked a surge in reskilling, shifting perceptions of employment and emphasizing the need for meaningful, growth-oriented work. As companies increasingly invest in training, employees are seeking roles that offer personal and professional development, with a growing reliance on online learning platforms for self-driven upskilling. This trend towards continuous learning is reshaping corporate training, academic curricula, and government policies, fostering a culture of adaptability and lifelong learning in the workforce.

Upskilling context

Millions working in the hospitality, retail, and fitness sectors lost their jobs within a few weeks of the 2020 COVID-19 pandemic lockdowns. Many individuals began reskilling during this period, looking for methods to upskill, foster new talents, or retrain in a different area as the pandemic persisted. This trend has led to debates on how companies should take responsibility for future-proofing their workforce.

According to US Labor Department data, the 2022 unemployment rate has dropped to a 50-year low at 3.5 percent. There are more jobs than workers, and HR departments struggle to fill positions. However, since the COVID-19 pandemic, people’s concept of employment has changed. Some people want jobs that only pay the bills; others wish to have meaningful work with room to grow and learn, jobs that give back to the community instead of making corporations wealthy. These are perceptions that HR departments must consider, and one way to attract younger workers is a culture of constant upskilling. 

Investing in human capital through training allows workers to tackle a new activity or project while remaining employed successfully. It requires time and resources to help the employee to gain new skills and knowledge. Many organizations upskill their workforce to be more productive or get promoted into new roles. Upskilling is necessary to assist firms in developing organically and enhancing employee happiness.

However, some employees think companies are not investing enough in their growth and development, leaving them to upskill or reskill themselves. The popularity of online learning systems such as Coursera, Udemy, and Skillshare shows the high interest in do-it-yourself training programs, including learning how to code or design. For many workers, upskilling is the only way that they can ensure automation won’t displace them.

Disruptive impact

While many people are engaging in self-learning, some companies foot the bill when it comes to reskilling and upskilling. In 2019, consultancy firm PwC pledged a USD $3 billion commitment to upskilling its 275,000 employees. The company said that while it can’t guarantee that employees will have the specific role they want, they will find employment in the firm no matter what.

Similarly, Amazon announced it would retrain one-third of its US workforce, costing the company USD $700 million. The retailer plans to transition employees from non-technical jobs (e.g., warehouse associates) to information technology (IT) roles. Another company upskilling its workforce is research firm Accenture, which pledged USD $1 billion annually. The company plans to target employees at risk of displacement due to automation.

Meanwhile, some enterprises are launching programs to train the wider community. In 2020, telecoms company Verizon announced its USD $44 million upskilling program. The company focuses on assisting Americans affected by the pandemic to find in-demand employment, providing priority admission to people who are Black or Latin, unemployed, or without a four-year degree.

The program trains students for jobs such as junior cloud practitioner, junior web developer, IT help desk technician, and digital marketing analyst. Meanwhile, Bank of America pledged USD $1 billion to help end racial discrimination, including a program to upskill thousands of Americans. The program will partner with high schools and community colleges.

Implications of upskilling

Wider implications of upskilling may include: 

• The increasing deployment of learning management systems to streamline and manage training programs and ensure they follow the company’s objectives and policies.
• The continued development of online learning platforms catering to the demands of individuals interested in transitioning to alternative industries or freelance work.
• More employees volunteering to be assigned to different departments to learn about other systems and skills.
• Governments establishing publicly funded upskilling programs, particularly for blue-collar or low-wage workers.
• Businesses providing learning programs to community members and students.
• The evolution of personalized learning paths in corporate training, facilitating the adaptation of skills to specific roles and accelerating career progression.
• Upskilling initiatives leading to higher job satisfaction and employee retention rates, positively impacting organizational culture and productivity.
• A shift in academic curricula to include more real-world applications and skills, bridging the gap between education and the evolving job market demands.
• The integration of advanced analytics in learning platforms, enabling precise tracking of skill development and identifying future training needs.

Questions to consider

• How might upskilling or reskilling opportunities be shared across the workforce equitably?
• How else can companies help their employees remain relevant in their roles?