Reskilling to Combat the $1T Turnover Problem

The powerful asset you already have: skills development

Looking for the silver bullet that will boost your business’s bottom line, improve employee morale, and foster a strong organizational culture? It’s something you likely already have—and devoted ample time and resources to getting. We’re talking about your top performers—the current employees you worked hard to recruit, interview, onboard, and train.

In this post, we’ll explore how companies can leverage e-learning to retain their top talent, improve their ROI, and foster a best-in-class company culture. For more tactics and insights, read our full e-book: The $1 Trillion Turnover Problem and How to Fix It. 

The hidden costs of employee attrition 

Your top-performing employees don’t just produce efficient, outstanding results for your organization—they also have an enormous impact on your company culture. In fact, these individuals have the power to help attract further talent, improve job satisfaction for their peers, and boost your company’s reputation.

While most companies understand the value of top talent when hiring new employees, many don’t budget for retaining those workers. While this might seem like a natural way to cut costs, it can have an enormous negative impact on an organization’s ROI. 

Gallup research shows that U.S. businesses lose an estimated $1 trillion annually due to voluntary employee turnover. They also estimate that replacing an outstanding employee can cost one-half to two times the person’s annual salary.

The costs don’t end there. When workers leave, organizations also lose their expertise, relationships with coworkers and partners, and the potential to grow and add value for the company in the future.

The good news? When companies take employee attrition seriously and invest in the right strategies for retaining their workforce, they can maximize value for both their business and team members. Ultimately, this creates a fulfilling workplace that produces real results for the long haul.

Fostering a strong culture of learning and development

So—what exactly can companies offer to better retain their staff? And what aspects of work matter most to today’s workforce? 

Research shows that the workforce increasingly expects opportunities for growth through employer-supported learning and development. In fact, according to LinkedIn, 94% of employees reported that if a company invested in helping them learn, they would work there longer. Employee development is a critical retention tactic—and upskilling and reskilling courses are two impactful ways to execute it.

It’s important to consider this phenomenon in the context of changes in workplace trends over the last few years. Business has increasingly shifted online, with many companies operating in a remote or hybrid capacity. 

Worker’s priorities also appear to be changing. According to Business Insider, as of June 2022, more than 4 million Americans had quit their jobs every month for 11 months straight. A largely Millennial workforce is increasingly prioritizing equity, transparency, flexibility, and purpose in their jobs. In other words, today’s team members may not be afraid to leave their current career path if they don’t find it fulfilling. 

This is where e-learning comes into play. No one wants to feel stagnant—they want to know that they’re progressing in their role. Advanced skills will allow them to grow and further their highest career goals.

By providing opportunities for employees to expand their existing skill set, regardless of their location, companies can show their investment in learning and development. Because these types of opportunities allow workers to gain new skills, they can also have an immensely positive impact on the organization’s bottom line.

When it comes to these growth opportunities, there are two main ways to address the skills gap: upskilling and reskilling. We’ll break down each of the two below.

What is reskilling?

Reskilling employees is a lateral learning process where employees train in new skills that allow them to perform a new role at their company. For example, a program that allowed customer support representatives to develop new capabilities in bookkeeping would qualify as a reskilling opportunity.

Why reskill?

Reskilling efforts can expand skill sets and open up new job opportunities. Employees may feel empowered by the skills needed to apply for new positions at the organization. Internal mobility may result in higher pay, increased job satisfaction, and other benefits.

For companies, reskilling can offer a host of business benefits. Of course, it can increase retention, especially among employees with low job satisfaction in their current roles. But it can also boost engagement, paving the way for a strong company culture with positive employee relationships.  

What is upskilling?

Like reskilling, upskilling allows employees to learn new skills that advance their career opportunities. However, when employees upskill, they deepen their existing skills and fill any gaps in their current skill set. For example, a technical writer might take an upskilling course to improve their writing speed with artificial intelligence tools.

Why upskill?

Reskilling and upskilling offer similar benefits for employees and businesses. Upskilling, by bridging a skills gap, paves the way for a more effective and engaged workforce with higher levels of job satisfaction. It helps the workforce stay competitive and may set them up for promotional opportunities or pay raises. Meanwhile, businesses may benefit from increased retention and revenue, as well as a stronger company culture.

3 key benefits of e-learning for employees and businesses

Investing in the right e-learning software and tools can increase both the accessibility and effectiveness of practices like reskilling and upskilling. On-demand online learning increases access to skills development tools. Below, we’ll dive into three of the top benefits of e-learning for both businesses and their employees. 

1. Greater job security, satisfaction, and opportunity 

The impact of e-learning doesn’t start and end with onboarding and initial training. When applied as a means of continuing education for existing employees, e-learning can allow the remote workforce flexibility and accessibility as they expand their skill sets and deepen their versatility. 

Here, empower employees to shape their career path direction. For example, offer multiple paths to growth. Encourage managers to make time to discuss e-learning, long-term goals, and growth opportunities in their 1:1s with employees.

2. Stronger company culture

Investing in e-learning is a powerful way for companies to demonstrate to their employees that they are truly invested in their growth and success. This can result in increased engagement and trust overall, making it easier to collect employee feedback that can continually improve organization culture over time. 

3. Improved productivity and ROI

Continuous learning opportunities allow employees to deepen and expand their knowledge over time. For employers, the benefit of this can be monumental—and gaps in organizational knowledge can be filled without the expenses of rehiring and onboarding.

Retaining top talent pays dividends

Upskilling and reskilling are closely related to a company’s ability to retain top talent. Investing in e-learning is a crucial way to build trust, increase engagement, and improve ROI in today’s workplace. By offering learning opportunities beyond initial onboarding, companies can foster a more fulfilling environment where the workforce is more successful, satisfied, and stays longer.

To learn more about mitigating employee turnover through e-learning opportunities, download our full e-book.