Advances in technology, consequences of the COVID-19 pandemic and constant changes in the market are causing businesses to modify certain roles in their organization to keep pace with these developments. This rise in automation, artificial intelligence and remote work have made some traditional jobs obsolete, so companies are being forced to adapt quickly.

In order to acclimate efficiently and effectively, businesses are turning to reskilling more than ever. Reskilling refers to the process of training a member of the staff to perform new roles within the organization. Training employees to conform to different positions is a valuable alternative to firing current team members and hiring to specifically fill that role.

Five major benefits of reskilling your workforce include:

1. Reduces costs and saves time
Hiring and training new employees costs more to an organization than relocating existing talent to a different role. With hiring new employees comes the costs of onboarding, background checks and other HR necessities, and these costs can get even higher when trying to fill specialized roles. Reskilling existing members not only saves the company money but time, as they're already aware of the processes and procedures of the organization.

2. Higher retention rates
Training employees to fill new roles shows a willingness to invest in their personal development. According to a report from Better Buys, this is highly valued by employees, as workers with these opportunities are 15% more engaged and these organization's have a 34% higher retention rate. These opportunities for professional development are also valuable to improve motivation and purpose in staff members.

3. A sustainable workforce
Because reskilling often results in more satisfied and motivated employees, organizations can foster a more sustainable workforce. Training and development practices lead to increased retention rates and decreased turnover, as well as motivate existing employees to work towards the company's goals long term.

4. Improved company culture and reputation
Investing in your team's professional development is not only beneficial for individual employees, but the organization as a whole. Reskilling workers leads to improved company culture all around by motivating employees and promoting an environment of learning, which ultimately leads to a boosted brand image or reputation from the outside as well. Improved company culture and reputation are essential to retaining existing talent, as well as attracting new hires who could be invaluable to the team.

5. Boosted employee morale and satisfaction
According to a 2021 report from Lorman, not only are 74% of workers willing to learn new skills to remain employable, but 41% of employees consider these career advancement opportunities very important for job satisfaction. Reskilling existing staff members is an effective way to benefit the organization while improving morale and motivation.

As jobs continue to be transformed by new technologies, a report from the World Economic Forum states more than one billion people will need to be reskilled by 2030. It will be significant for employers and managers to review their internal structures and determine where reskilling could be relevant within the company moving forward.