There is a lot of uncertainty in the overall economy. Some are more optimistic than others, and there are varying opinions on the most significant problems and foundational causes, but almost everyone agrees the job market is facing significant challenges. According to the World Economic Forum, the “familiar precursors of a recession have arrived.” There are rising interest rates and high inflation, among a heap of markers, suggesting a current or upcoming recession.
These factors can create new difficulties for both employers and employees. Facing tough financial forecasts, numerous companies have made the hard choice to lay off workers. Almost 90,000 layoffs were announced in March 2023 alone. But the outlook doesn’t need to be so dismal. In a time of economic uncertainty, many organizations are investing in their current workforce to build up internal capacity and expertise. Rather than resorting to layoffs or restructuring, organizations across the country are finding success with reskilling.
When you consider the cost and benefits of reskilling, it’s a win-win. Employees don’t want to lose their jobs; employers don’t want to let people go. Companies can increase employee retention by providing new skills to the right employees. Businesses can maintain a strong, motivated and productive workforce by allowing people to switch careers inside the company.
Winning Employee Buy-In
Company leaders can’t force employees to participate in reskilling programs. Instead, they will need to gain buy-in from their teams by emphasizing the benefits of switching to a technology career. To start these conversations, consider some of the following:
- Technology provides a stable, resilient career.
According to the Bureau of Labor Statistics, technology careers are expected to have high growth compared to the job market as a whole. The anticipated growth between 2021 and 2031 for all occupations is 5%, while computer and technology careers should grow by 15%. In particular, software developers are expected to grow 26%, resulting in roughly 1.8 million developers by 2031. While some have slow or even negative growth, the majority of these tech jobs are expected to increase.
- There is a skills gap. The demand for tech skills is high, but the current pool of available talent is low. Currently, there is a significant shortage of skilled technology professionals, especially software developers. According to a recent report, roughly 918,000 information technology (IT) jobs have gone unfulfilled. By reskilling existing talent, companies can secure the workers they do have and fill open positions internally.
- There are numerous options available. There are various training modalities for tech learning. This can include formal education at community colleges and major universities, but it can also take the form of non-traditional learning, such as seminars, certificates and coding bootcamps. Numerous resources, including full-time and part-time coding bootcamps, are available to help individuals acquire necessary tech skills at a fraction of the price and time of a typical four-year degree.
Employers can create buy in from their team members by emphasizing these benefits to workers. And when employees adopt these skills, companies can increase retention, which can benefit both the individual and the organization.
Why Should Companies Retain Talent?
We live in a time of record employee turnover. The days of landing a job out of college, working under a single company for 40 years and then retiring with a pension are over. However employers can still enhance their financial footprint and long-term stability by increasing employee retention. There are numerous statistics available and countless ways to dissect the financial impact of employee turnover and layoffs, but according to Gallup, the cost of replacing an individual employee can range from one-half to two times the employee’s annual salary.
Your team members are your company’s core, so they should be invested in as such. Being a people-first company can create deeper trust and loyalty between employees and employers. Nearly 87% of millennials rate professional and career growth as the most important factor in their job, and 68% strongly agree that learning and development opportunities increase their likelihood to stay with a company longer.
The Time to Adjust Your Talent Strategy Is Now
The current economic trends may seem negative, and most experts (as well as consumers) may feel we are in or nearing a recession. The old response from employers is to cut costs by laying off workers. Still, by transitioning employees into technology roles through accessible, convenient training, these organizations can reduce turnover, avoid layoffs and strengthen their company.
By allowing employees to transition into technology roles, the company can be better positioned for the next financial challenge.
