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Reskilling and upskilling are two of the most important strategies being used by companies today to train and retain talent.

According to research by the World Economic Forum, it is estimated that the evolution of machines and algorithms in the workplace will displace approximately 75 million jobs.

However, they would also create 133 million new jobs. This is why reskilling is becoming more and more important for both companies and individuals.

Let’s take a closer look at what reskilling is and what it’s for.

What does Reskilling really mean?

To begin, it is important to define what the concept of reskilling means.

Reskilling is a training process that provides workers with the skills and abilities necessary to perform new tasks or roles within the company.

This phenomenon began to be seen more frequently due to the need for companies to adapt to constant changes in the market and technology.

Training employees within their work environment generates new opportunities and challenges while improving productivity and professional satisfaction.

Benefits of Reskilling for Your Company

Improves employees’ adaptability and flexibility

Reskilling allows employees to learn new skills and abilities to perform different tasks and roles within the company.

This makes them more flexible and adaptable to changes in the market and business needs.

Increases productivity

By training workers in new skills and knowledge, they are provided with the necessary tools to perform their work more efficiently and effectively.

This can result in increased productivity and efficiency within the company.

Talent retention

When a company invests in the professional development of its employees, they feel valued, motivated, and stimulated to grow within the organization.

This reduces continuous staff turnover and attracts talent that is favorable to the company.

Reskilling in the Digital Age

Undoubtedly, reskilling has become a key factor for the digital transformation of the company and for keeping it competitive in the market.

Currently, both employees and middle and high-level positions require adapting to new ways of working, developing skills that allow them to be part of this generational and technological change.

New technologies are transforming the way businesses are conducted and the skills required to perform different roles in a company.

Therefore, it is necessary for companies to train their employees to be prepared to face technological challenges and take advantage of opportunities.

Through reskilling, employees can acquire the necessary skills and competencies to perform technology-related roles, such as programming, data analysis, artificial intelligence, automation, marketing, among others.

In this way, companies can take advantage of the benefits of technology to improve their productivity, efficiency, and profitability.

How to Implement Reskilling in Your Company?

Below we share some tips that will allow you to implement and promote reskilling in your company.

Identify skills deficits

Once your company’s objectives and the requirements needed to achieve them are defined, it is essential to evaluate whether employees and their current skills are aligned with those objectives.

To achieve this, it is necessary to take into account both the skills required for each position.

You can evaluate your employees’ skills to understand what knowledge they need to acquire to meet the organization’s needs.

Additionally, through the analysis of the competencies that need to be incorporated, you can identify the specific skills and knowledge that your team lacks, allowing you to develop training and education plans to close these gaps and improve the company’s productivity and efficiency.

Identify adjacent competencies

After identifying the necessary skills, it is important to search for adjacent skills that are closely related to those required for the new function.

This will facilitate professional retraining. Employees with related skills may already possess the required skills or may be able to learn them quickly for the new function.

Hire companies that specialize in reskilling for specific competencies

While in-house training options are great, when it comes to developing new skills in an organization, partnering with corporate training providers may be the best option.

There are companies that develop corporate training systems focused on accelerating employee learning processes.

Evaluate the training results. Just like it’s recommended to conduct a diagnostic test at the beginning to identify the skills that need reinforcement or incorporation in your employees, after the training, you should verify that the knowledge has been absorbed.

Continuous evaluation of your team’s knowledge and skills allows you to create more effective training and development plans.

Using reskilling in your company enhances both soft and technical skills of your team, promotes team building, and improves interpersonal relationships within the group.

Moreover, it reduces employee turnover rates and monitors team growth through personalized performance reports.

In conclusion, reskilling has become a necessity for companies that seek to remain competitive and adapt to changes in the job market.

Investing in employee skill development not only helps maintain a highly skilled workforce but also increases employee satisfaction and retention.

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Reducing turnover rates can benefit a company’s engagement, improve employer branding, and encourage productivity. This is why corporate training, such as upskilling and reskilling, is one of the most effective tools for retaining talent in a company.

Today, we will discuss upskilling and how to implement it in your company. This process is essential for employee retention and can reduce a lack of professional development opportunities, which can be a significant factor in employee attrition.

What is Upskilling?

Upskilling is a training and skill development process that aims to improve an employee’s capabilities in their current job or potential future jobs. It generally refers to the acquisition of new skills, knowledge, and competencies that enable employees to adapt to changing job market demands and perform their job more effectively. These skills can include technical, interpersonal, leadership, digital, problem-solving, and time management skills, among others.

According to a report from McKinsey Global Institute, an estimated 375 million workers will need to develop new skills by 2030 due to automation and artificial intelligence.

Upskilling is becoming increasingly important in a constantly evolving job market, where new technologies and market trends can affect demand for specific skills and knowledge. By improving their skills and staying up-to-date, workers can enhance their ability to advance their careers, increase their employability, and adapt to changes in the job market.

Benefits of Upskilling

Adaptation to Job Market Changes

The job market is constantly evolving due to technological advancements and new business trends. Upskilling helps employees stay up-to-date and adapt to the new demands of the job market.

Improved Job Performance

Upskilling can also improve job performance by increasing workers’ efficiency and productivity. The ability to participate in more complex or important projects can directly impact the employee’s productivity.

Professional Development

Upskilling can help workers develop professionally by allowing them to explore new areas of interest and take on new job challenges. Upskilling is essential for the professional development of the employees in your company.

Job Satisfaction

By improving their skills and knowledge, workers can feel more confident and competent in their job, which can increase their job satisfaction and commitment to their work.

In summary, upskilling is essential because it enables workers to stay up-to-date and adapt to changes in the job market, improve their employability, job performance, professional development, and increase their job satisfaction.

How to Apply Upskilling in Your Company?

Applying upskilling in your company can be an excellent way to improve the efficiency and job performance of your employees. Below are some tips on how to apply upskilling in your company:

Identify the Necessary Skills and Knowledge

Identify the skills and knowledge your employees need to perform their job effectively and the skills they may need in the future. Consider market trends and new technologies that may affect the demand for skills.

A good way to identify skills and measure growth is through the use of online testing platforms that allow you to assess people’s actual skills and determine where there are opportunities for improvement.

Offer Training and Development Programs

Once you have determined the training programs your employees need, offer them opportunities to participate and contribute to their professional growth. These can be online courses, seminars, workshops, conferences, mentorship programs, among others. Any materials that allow them to grow and develop in other areas of knowledge.

Provide on-the-job learning opportunities

One of the most effective strategies you can have in your company is to allow your employees to be part of challenging projects that generate new learnings. Provide on-the-job learning opportunities by assigning challenging projects and tasks that allow your employees to develop new skills and knowledge.

Encourage training and learning

Encourage your employees to participate in training and development programs and promote a culture of continuous learning in your company. Show them the value of acquiring new knowledge and how it will positively impact their professional lives.

Provide feedback and recognition

Provide feedback to your employees on their progress in learning and recognize their achievements and advancements in skill and knowledge development. It’s essential to measure how they started and how they finished after the training, so you can have interesting metrics on the effectiveness of your training plans for your employees.

Many companies today are using upskilling and reskilling strategies to generate greater engagement in their employees and maximize productivity. Additionally, they are valuable tools for promoting employer branding and creating a positive image of your company.

Have you already implemented upskilling programs in your company?

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Recently, much has been said about the lack of digital talent. Latin America needs to train at least one million new software developers in the next 10 years to meet demand in the sector.

In response to this market demand, various educational solutions have emerged in recent years to train new programmers and IT talent. University enrollments in STEM careers grow year by year, and novel programming boot camps continue to explode in demand.

However, once these people learn to program, little is said about the process of incorporating these new talents into the technical teams that are already part of the companies.

Companies that require massive IT talent acquisitions face significant problems in this process, which begins with detecting talent to hire in the market to assigning these individuals to teams once they are productive enough to join the work environment.

In this article, we will review the main pain points that the most important technology companies in LATAM face in this process, which we will call tech talent onboarding.

We will also analyze the different strategies used to mitigate this problem and the advantages and disadvantages of each. The focus will be on trainee or entry-level talent, meaning those software developers without previous work experience.

Main Challenges for Companies Hiring IT Talent

Let’s review the main pain points that a company, growing in LATAM, has when hiring profiles in the technology sector:

IT Training

Universities and bootcamps train talents in a standard format, meaning they do not specialize in very specific tools and technologies. For example, programming frameworks such as React, Node, Spring, .NET, Kotlin, or Swift, among others, are rarely part of the curriculum of such educational centers.

The training is usually comprehensive so that the graduate can continue to develop in the company. Moreover, many educational institutions do not specialize in generating practical environments where work methodologies or development tools are implemented. These skills are very necessary when joining an IT team.

Thus, this last stage of training, called the “last mile,” ends up being developed within the company and is carried out by the senior talent of the company to ensure that junior talent is “job-ready.”

Of course, this implies a very large investment of time and resources for companies that have to carry out the onboarding of tech talent for new hires.

Senior Talent Shortage

The most valued talent by companies is, in fact, the most experienced. They possess enough expertise to lead the development of new digital products or to quickly resolve technological problems or bugs (errors in applications or software).

As previously mentioned, the “last mile” training is carried out by this group of professionals.

In addition to the clear shortage of senior talent, there are also hours of training for junior talents who join the company, taking away “productive” hours for the hiring company.

Each hour of a senior software developer represents a very high effective cost. Added to the “opportunity cost” of that hour, represented by all the new developments that were not carried out or the bugs that were not solved, limiting the company’s growth.

According to digital portal La Información, for a new employee to be 100% productive in a company, at least 6 months must pass. That’s why many companies include onboarding programs that seek to reduce these times as much as possible.

“According to estimates we have been able to make at Alkemy, each trainee software developer who does not go through an onboarding program requires between 90 to 180 hours of training from a senior developer.”

Federico Repetto, CEO & Co-Founder of Alkemy

Methodology

The vast majority of companies, even technological ones, are not specialists in how to carry out effective onboarding processes.

The answer lies in the fact that this is not the core of the company, and the training that is carried out often has a format that does not always adapt to the learning needs that talents and the company require.

And since they don’t know how to carry out tech talent onboarding in companies, they often assign these tasks to senior developers in the company, making it a slow process and with a cost that is too high for companies.

Scalability and technology

Finally, the lack of scalability and appropriate technology for the process make onboarding one of the main problems for companies that hire tech talent.

In this sense, in-house training becomes unscalable for companies. At the same time, the lack of focus does not allow the implementation of the latest technologies available to carry out talent onboarding in a scalable way.

Tech Talent Onboarding: How to Do It Effectively

There are different solutions to tackle the problem. Here we show them to you with their advantages and disadvantages.

Solutions	Advantages	Disadvantages
Don’t hire junior talent. Shortage of senior talent.	Only incorporate experienced talent into technical teams.	None.
	Poor culture and long-term vision.	Weak foundations for scaling.
On-the-job training	Group a certain number of juniors under the supervision, monitoring, and training of a senior talent.	Proximity with talent during their first weeks. Scalability. Lack of know-how. Unpredictable results. Many hours of deslocalized senior talent. Budget. Poorly organized induction. Candidate frustration.
Onboarding in-house	Train talent under a program developed by the company itself.	Proximity with talent during their first weeks. Reduction of candidate frustration. Reduction of attrition. Company culture and way of working focused on training. Greater engagement with the company. Scalability. Lack of know-how. Unpredictable results. Many hours of delocalized senior talent. Budget.
Program of onboarding with a specialist partner	Partner with Alkemy, a specialist in tech talent onboarding.	Scalability. Senior team dedicated to the business. Co-creation of the experience. Guarantee of job readiness. Individual performance metrics. Experience and know-how in onboarding. Technology applied to training. Streamlining of time and resources devoted to training. Company culture and way of working focused on training. Greater engagement with the company. Drastically reduced risk of attrition. Budget.

If you are a company that hires tech talent and you are looking to effectively, efficiently, and scalably onboard new hires, Alkemy has the solution for you.

For more information about the Onboarding program in partnership with Alkemy, click here.

Federico Repetto, CEO & Co-Founder of Alkemy

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In the technology job market, turnover can be especially costly for companies due to the level of specialization required for these roles and the competition for talent.

Implementing an IT training program is a highly effective way to reduce employee turnover and retain highly skilled workers.

In this article, we will explain how a well-designed IT training program can help improve employee retention in the world of technology.

Benefits of Implementing IT Training

According to a 2021 report by consulting firm Mercer, 38% of technology companies in Latin America had problems retaining IT talent.

This is, of course, linked to a variety of factors that can influence an employee’s decision to leave the company.

According to a 2021 study by Lorman, 70% of employees stated that they are more likely to leave their job for another company that is willing to train their skills.

Let’s take a look at some of the benefits of investing in upskilling or reskilling programs to accelerate the skills of employees working in tech areas.

Skills Development

To achieve retention in the technology job market, it is essential to develop workers’ skills.

An IT training program can not only provide employees with the complementary skills required for their role, but also allows them to stay up-to-date with the latest trends and technologies.

According to a study by Udemy, “60% of IT employees consider skill development to be the most important factor in job satisfaction and employee retention in the technology job market.”

Sense of Belonging

The sense of belonging is one of the most difficult emotions to achieve in technology employees, and IT training can be a great ally in achieving it.

This type of training encourages employees to feel included, cared for, and that they are part of the company and that the company is investing in their professional development.

According to a survey conducted by LinkedIn, “94% of technology employees stay at a company longer when they feel that their work has a positive impact on society and the world in general.”

And that’s not to mention if the company has a positive impact directly on the lives of its employees.

Growth Opportunities

Growth opportunities are a natural consequence of IT training and skills development.

One of the objectives of any employee is to climb the ranks and have a progressive and exponential career growth.

Conducting reskilling and upskilling programs in the company can allow employees the possibility of taking on new professional challenges and more ambitious projects.

Gartner published a study claiming that 70% of technology employees consider the opportunity to develop a career as one of the most important retention factors.

Attractive Work Environment

For companies to promote their employer brand and position themselves as attractive places to work, they can rely on IT training programs.

According to a Glassdoor study, “76% of technology employees consider the work environment as the most important factor for employee retention in the technology job market.”

Training, development, attractive projects, and good benefits are just some of the determining factors for retaining talent in technology.

As you have seen throughout this article, implementing IT training within your company can help you reduce turnover.

Furthermore, it directly affects your employer brand and can position your company as a technological leader in the market.

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