Organizational Transformation

Cultivating an Upskilling Company Culture: Why It Matters

A culture that prioritizes upskilling employees helps companies to stay competitive, drive innovation, and future-proof their workforce.

It’s no secret that there’s a skills shortage looming. Our own research paints a particularly gloomy picture, suggesting that a dearth of skilled talent could leave more than 85 million jobs unfilled worldwide by 2030.

To get ahead of the crisis, many human resource executives are already ramping up efforts to educate and train their workforce.

But occasional courses can only go so far. A better option is a shift in company culture to one that values and prioritizes continuous learning. Implementing an employee upskilling program is one way to do that, says Ben Hubbard, Senior Client Partner at Korn Ferry.

“With regular upskilling programs, learning becomes more organic and embedded within the culture of the organization,” says Hubbard.

What is Upskilling?

Upskilling is the process of enhancing employees’ skill sets or providing them with new ones that align with the changing demands of their roles and job market.

An upskilling company culture means you’ve created an environment and strategy that regularly invests in the training, growth, and development of your employees.

Why an Upskilling Culture Matters

Ongoing upskill training helps keep employees up to date on the latest trends and technologies. But more broadly, it also creates a workforce that is adaptable, innovative, and future-ready.

Here are some of the benefits of upskilling employees:

Talent Retention and Employee Engagement

Your most talented employees aren’t going to feel satisfied if you leave their careers at a standstill. By making upskilling an inherent part of the culture, companies show their commitment to employees’ growth and career advancement. This not only boosts employee engagement and job satisfaction but also increases retention rates. Indeed, organizations that are focused on skills are 98% more likely to retain high performers.

Improved Productivity and Efficiency

When employees gain the latest skills and know-how relevant to their roles, they’re better able to streamline processes and find novel solutions to complex problems. This translates into increased productivity, efficiency, and overall organizational performance.

Adaptability to Change

Employees who continuously expand their skill sets are better prepared to navigate disruptions and contribute to the organization’s long-term success.

Innovation and Competitive Advantage

Upskilling encourages employees to think outside the box and explore new ideas. This innovative mindset can lead to the development of new products, services, or business models, giving companies a competitive edge in their respective markets.

Succession Planning and Leadership

By investing in their employees’ growth, companies create a pipeline of skilled leaders capable of taking on larger roles and responsibilities. This ensures a smooth transition of leadership and continuity of operations, mitigating the risks associated with knowledge gaps and talent shortages.

Cultural Transformation

Is your culture working for or against you?

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How to Build an Upskilling Culture

Cultivating an upskilling company culture requires a strategic approach and commitment from all levels of the organization. Here are some practical steps companies can take:

Conduct regular skills assessments to identify gaps and determine upskill and reskill needs.
Offer diverse learning opportunities, such as on-the-job training, mentorship programs, online courses, and workshops.
Foster a growth mindset by celebrating learning achievements and encouraging knowledge sharing.
Align upskilling initiatives with organizational goals and individual career development plans.
Allocate dedicated resources, including time and budget, for upskilling training.
Involve leaders, managers, and staff in the process by seeking their input on how to upskill employees and address their unique learning preferences.

Start Your Upskilling Cultural Transformation

In the age of digital change, upskilling is no longer an option—it’s a necessity. By cultivating a company culture of training and upskilling, you can future-proof your workforce, drive innovation, and maintain a competitive edge. Prioritizing employee development is an investment in the long-term success and sustainability of the business.

To help you shift your organizational culture toward continuous learning and development, Korn Ferry has developed a guide for CHROs. Download our eBook to learn more.