Future-Proofing Your Workforce: The Power of Upskilling, Reskilling, and Skills-Based Hiring

As the workforce adapts to changes in business, technology, and the economy, organizations must ensure employees have the skills to keep up. Whether efforts are directed internally toward upskilling and reskilling staff, or externally through the use of skills-based hiring practices, meeting this need is fundamental.

Mercer reports that 91% of employees are actively seeking to learn new skills and 98% of HR leaders still report notable skill shortages in their companies. Although most HR professionals recognize the need for a shift, very few have made it a priority. Now is the time to create a plan for filling those needs and the gap to ensure a future ready workforce. Below are two initiatives you can use to narrow the skills gap in your workplace.

Investing in Upskilling and Reskilling

The opportunity to upskill and reskill your workforce allows you to retain the employees you already know (and love!) and empower them to not only enhance their own skills but to strengthen your workforce and increase organizational resilience. Internal talent development ensures your organization can adapt to shifts in technology and the market, while also promoting a culture of continuous learning.

Leaders commonly cite time constraints, cost/budget, and lack of leader commitment as barriers to upskilling and reskilling. Despite these challenges, employers report boosted morale and engagement and an increase in productivity and innovation. In addition, increased retention is evident. According to a study of leaders by The University of Phoenixmillennial leaders (52%) are more likely to remain with their company if offered upskilling and reskilling support, compared to Gen Z (35%) and Gen X (50%) leaders. 

What is Skills-Based Hiring?

Skills-based hiring prioritizes the abilities and competencies an employee brings to a role over formal educational qualifications. By focusing on skills, companies can expand their talent pool, fill critical roles faster, and ensure employees are equipped to thrive in their positions. This approach not only improves hiring outcomes but also helps future-proof the workforce against rapid technological and market changes.

In a recent Forbes article, companies report fewer hiring mistakes and outperformance by those hired based on skills as compared to those  with degrees or certifications. Easily implemented, talent acquisition teams can begin simply by identifying the essential skills for a role and using skill-based assessments and structured interview to evaluate the skills objectively. It is a transformation in how we define jobs and value practical skills and abilities over past job titles or big name university degrees.

Are you Ready to Make the Change?

Whether you focus on internal development or external recruitment, these methods can help secure your workforce in a competitive labor market. Both approaches encourage ongoing learning and value employees who possess essential skills for organizational success. By adopting these strategies, companies can boost employee retention, increase engagement, and lower turnover rates. Leaders who commit to this mindset will cultivate teams that are prepared for future demands, blending smart hiring practices with growth opportunities to effectively future-proof their organizations.

Thank you to Tracy Walker, Sr. Talent Acquisition Specialist, for contributing to this article and check out our Video Question of the Week series with videos addressing upskilling and reskilling. The videos include, “6 Steps to Upskill Your Workforce”, “Assessing Organizational Skill Needs for Strategic Planning & Succession Planning”, “Skills Gap Analysis”, and “Why Upskilling and Reskilling are Business Priorities”.

Do you need help in adapting your current training or recruiting processes to a skills-based model? Contact Clark Schaefer Strategic HR today at (513) 697-9855 or email us for a free consultation to determine how to implement these initiatives .