As the business landscape is evolving in the post-pandemic world, agile companies are fast activating their call to action toward employee development. Upskilling and providing job centric training to employees is emerging as mainstream talent development imperative to stay relevant in the war for talent.
Amidst this scenario, the focus of most progressive employers has evolved towards retaining their top resources and investing in them to elevate their performance level.
As per a survey by Gartner, almost 60 percent of HR Leaders have reported skill-building as their number one priority in 2022. After all, the human resource pool makes up the biggest asset of any organization and propels its success!
Interestingly, as per a study by Mc Kinsey, 69 percent of organizations are investing in more skill-building pursuits now as compared to pre-pandemic times, further validating the growing need to adapt to the changing tides.
This makes a strong case for focusing on employee development.
Pivoting now to Employee Development, which comes under the realm of Performance Management, essentially refers to the gamut of processes undertaken by organizations to attract and retain bright talent.
The central idea behind talent development is to unleash the hidden talent within the existing workforce and empower the people to move closer to their optimized performance potential.
It is significant for all growing organizations because it:
• Elevates employee performance and productivity
As per Research Gate, participants undergoing learning and development trainings demonstrate an increase in learning capacity by 25 percent and performance levels by 20 percent.
• Overcomes the skill gap prevalent in organizations
Research by Manpower Group suggests that 54 percent of companies globally report acute skill shortages and cite the difficulty in attracting the desired skilled resources.
• Ensures talent engagement within the organization
As per Axonify, nearly 92 percentof employees suggest that their engagement levels rise with access to well-planned employee training programs.
• Reduces attrition tendencies
A LinkedIn Learning study suggests that 94 percent of employees are likely to stay with their current organization for an extended period if they are involved in learning and development activities.
• Enables organizations to prepare for the future of work
A study from WEF outlines that it’s pertinent for employers to identify existing and potential skill gaps and create practical learning and development opportunities. Statistically, 50 percent of employees today require skillset nurturing and upgrade by 2025 to stay relevant.
It’s important to note that employee development activities do not entail isolated events that companies may undertake from time to time. Instead, it must encompass a culture of continuity, including ongoing L&D pursuits such as on-the-job learning opportunities, upskilling, reskilling, cross-skilling, and so on.
On-the-job training, or OJT, and upskilling play a noteworthy role in driving successful employee development in the following ways:
Allow casting a wider talent acquisition net
Most organizations cite the lack of qualified talent as one of their most significant impediments to growth. In a world where the desirable skillsets are evolving fast, job-centric training and upskilling enable employers to pick up talent with transferable skills and nurture them for their benefit. This helps to fill positions timely, whether through agile hiring or internal mobility, and thereby attain organizational objectives.
For instance: 70 percent of food servers who lost their jobs in the pandemic are usually endowed with the skills that may help them succeed in a front-facing role like customer service. As against having positions unfulfilled for these high demand roles for lengthy periods, it makes sense to absorb people with basic proficiency in these skills and develop them while they perform the job.
Amplify employee engagement
If employees see good opportunities to learn and grow within their current roles, they’re much more likely to be engaged and loyal to the organization. At the end of the day, it is crucial to recognize that every individual is concerned with their career path, and unless their needs are met, their performance will witness an impact.
Statistically speaking, 94 percent of workers suggest that they’re likely to stay longer at their current company if the organization invests in their careers. Human resources form a part of the indispensable asset pool of any organization. Unless the workers are happy, satisfied and well engaged, their performance levels are not as per their true potential. Moreover, attrition as a cost will be recurring.
Support optimal bottom-line growth
A staple objection against investing in L&D pursuits that most leaders come up with is the efficacy of time and investment towards it. In a market situation already characterized by a talent shortage, sending workers off to training and development programs further accelerates the internal work pressure. Moreover, such development comes at a cost and in moments of talent deficit, might feel like an irrational one to incur.
The best way to overcome this is by investing in learning and development pursuits like OJT and upskilling. They help enhance the skills and productivity of the existing people and simultaneously introduce significant financial benefits for companies. Both approaches can significantly overlap with a typical workday schedule, and it require allocating lesser isolated hours towards only learning. This optimizes the employee billable hours, thereby enhancing performance and overall company profitability.
At the end of the day, introducing robust L&D initiatives is vital for an outcome-focused, progressive organization. Pursuits such as OJT and Upskilling empower enhanced self-sufficiency in terms of hiring effectively with agility, internally catering to catering to changing talent requirements, and ensuring that every employee is the best fit to their roles. While it helps the company increase productivity and achieve resulting bottom-line growth, it also engages the workforce and caters to their growth plans. In short, forms a single step towards realizing twin benefits.
(Sujit Karpe, Co-Founder and CTO, iMocha-digital skills assessment platform)
