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Decoding Global Trends in Upskilling & Reskilling

The advancement of technology has led to a rapid growth in the skills required for various jobs. New jobs have replaced jobs that existed years ago. This has led to a situation where the skills necessary for many jobs are constantly changing and evolving. As a result, it is becoming increasingly important for workers to keep upskilling and reskilling.

Upskilling is the process of learning new skills. It is about improving existing ones in order to be able to perform a particular job better. Reskilling refers to the process of learning new skills to be able to perform a different job. In this blog, we will discover global trends in upskilling & reskilling.


Decoding Global Trends in Upskilling & Reskilling in 2022

The future of work is rapidly changing and jobs are coming and going at an unprecedented rate, according to a recent study by the World Economic Forum. In order to stay ahead of the curve, 54% of all employees will need to upskill or re-skill in order to stay relevant in the workforce.

The rise of automation and Artificial Intelligence (AI) is the main driver of this change. As machines become more and more capable of performing tasks that were done by humans, the need for human workers is diminished. In fact, by 2030, as many as 375 million jobs (14% of the global workforce) will need to switch occupations due to automation & AI. In order to stay ahead of the curve, workers will need to acquire new skills or learn how to use new technologies. The following is a list of trends in upskilling and reskilling in 2022:

1. The Gig Economy will Continue to Grow

The gig economy will continue to grow in popularity in the coming years. Since more and more people are opting to freelance or work on short-term contracts instead of traditional full-time employment. A number of factors drive this trend. Including the increasing availability of flexible work arrangements, the rise of the digital economy, and the increasing global demand for skilled workers.

2. The Demand for Skilled Workers will Continue to Rise

The demand for skilled workers will rise in the coming years. Because businesses increasingly seek out employees with the specific skills and knowledge needed to drive their growth. The rapid pace of technological change, the rise of the global economy, and the increasing importance of knowledgeable and skilled employees in the workplace drive this trend.

3. More Businesses will Adopt Training and Development Programs

More businesses can adopt training and development programs in the future in order to stay competitive in the increasingly global and digital economy. The need to provide employees with the skills and knowledge needed to be successful in the modern workplace, as well as the desire to attract and retain top talent are the factors contributing to this trend.

4. The Use of Technology in Training and Development will Continue to Increase

The use of technology in training and development will continue to increase in 2022 & next few years, as businesses seek out more efficient and effective ways to train their employees. The rise of online learning, the increasing availability of mobile learning tools, and the growing popularity of Virtual Reality (VR) and other immersive technologies are the reason behind this trend.

5. The Focus on Soft Skills will Continue to Increase

In the coming years, the focus on soft skills will continue as businesses & organizations are increasingly recognizing the importance of these skills in the workplace and modern world. The need for employees to be able to effectively communicate, collaborate, and problem-solve in the workplace, as well as the growing recognition of the importance of emotional intelligence drive this trend.


Global Market of Upskilling & Reskilling 

According to a research from the 2021 World Economic Forum, significant investments in upskilling might result in potential profits for the Indian economy of up to 570 billion rupees over the course of the following ten years. The key drivers for market growth include the need to stay competitive in the ever-changing workplace, the need to keep up with the rapid pace of technological change, and the increasing pressure on organizations to do more with less. The upskilling and reskilling market is segmented by type, delivery mode, and geography as follows:

1. Type

The two segments of upskilling and reskilling in the global market are online and offline. The online segment will grow at a higher CAGR during the forecast period. The growing popularity of online learning platforms and the increasing adoption of mobile devices are the key factors driving the growth of the online segment.

2. Delivery Mode

Upskilling and reskilling market is segmented by delivery mode into synchronous and asynchronous. The growing popularity of live online courses and the increasing adoption of Virtual Reality (VR) and Augmented Reality (AR) technologies are the key factors driving the growth of the synchronous segment. Asynchronous delivery mode refers to online learning where students and instructors are not present at the time.

3. Geography

The upskilling and reskilling global market is separated by geography into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America accounts for the largest share of the global upskilling and reskilling market in 2019. Asia Pacific is the fastest-growing region in the upskilling and reskilling market. The growing number of Small and Medium Enterprises (SMEs) in the region and the increasing focus on employee training and development are the key factors driving the growth of the upskilling and reskilling market in Asia Pacific.

The major players in the upskilling and reskilling market are IBM Corporation (US), SAP SE (Germany), Oracle Corporation (US), Skillsoft Corporation (US), and Pluralsight, LLC (US). These players are focused on expanding their upskilling and reskilling product and service offerings and expanding their geographical presence to gain a competitive edge in the global market.


Future Scope of Upskilling & Reskilling Globally 

The concept of upskilling and reskilling is not new. However, the term has gained increased attention in recent years as the nature of work has changed and the skills required to perform jobs have shifted. Many jobs became obsolete, while new jobs created require different skill sets. This created a skills gap.

There is a growing recognition globally that upskilling and reskilling are essential in order to stay competitive in the ever-changing world of work. A recent report by the World Economic Forum infers that by 2025, 50% of all employees will be upskilled or reskilled to some extent in order to meet the demands of the Fourth Industrial Revolution. Governments, businesses, and educational institutions are all working to develop programs and initiatives to help people upskill and reskill. In the United States, for example, the Obama administration launched the Upskill America initiative in 2015, designed to help workers learn the skills they need to succeed in the new economy.

According to Organization for Economic Co-operation and Development (OECD) projections, over 1 billion jobs (nearly one-third of all jobs worldwide) will undergo a technological transformation in the upcoming ten years. The Fourth Industrial Revolution’s demands will result in the creation of 133 million new jobs in major economies by the year 2022, according to the World Economic Forum.


5 Effects of Upskilling & Reskilling on Global Workforce

Upskilling and reskilling are two strategies that businesses can use to ensure their employees have the abilities they need to stay relevant in the changing world of work. Both upskilling and reskilling are important for businesses to consider in the current climate. The effects of upskilling and reskilling on the global workforce are wide-ranging. Here are some of the most important:

1. Increased Productivity

Upskilling and reskilling employees can lead to increased productivity. When employees are equipped with the latest skills and knowledge, they are able to work more efficiently and effectively. This can result in increased output for businesses, as well as improved quality of work.

2. Improved Employee Retention

Investing in employee development can also help improve retention rates. When employees feel that their employer is investing in their future, they are more likely to stay with the company. This can save businesses money in the long run, as they won’t have to constantly train new employees.

3. Reduced Training Costs

Upskilling and reskilling employees can also save businesses money in the long run. By providing employees with the skills they need, businesses can avoid the cost of hiring new employees or training them. This is especially important in industries where employee turnover is high. By providing employees upskilling and reskilling programs companies can reduce their employee turnover.

4. Improved Customer Satisfaction

It can lead to improved customer satisfaction, when businesses invest in their employees. When employees are knowledgeable and skilled, they are better able to provide a high level of service. This can result in happier customers, which can lead to repeated business and increased profits.

5. Increased Competitiveness

Businesses can gain a competitive edge by providing employees upskilling & reskilling. In today’s global economy, businesses need to be constantly innovating to stay ahead of the competition. By investing in their employees, businesses can ensure that they have a workforce that is equipped to deal with the challenges of the future.


Conclusion 

In general, the effects of upskilling and reskilling on the global workforce are positive. By keeping workers’ skills up to date, upskilling and reskilling can help to improve efficiency, and to adapt to new situations and technologies. However, upskilling and reskilling can be expensive and time-consuming too, and it can be difficult to keep up with the constantly changing demands. Companies should encourage employees to upskill and re-skill themselves. 


FAQs

1. What is the importance of upskilling and reskilling?
Upskilling and reskilling are important because they allow individuals to keep up with changes in the workforce. With technology and other changes, some jobs become outdated while new ones are created. Upskilling and reskilling help people to stay employed and to get better jobs by improving their knowledge.

2. What are the challenges of upskilling and reskilling?
The challenges of upskilling and reskilling include:

  • Ensuring that employees have the necessary skills to perform their jobs
  • Providing employees with opportunities to learn new skills
  • Making sure that employees are able to apply their new skills in the workplace
  • Evaluating the effectiveness of upskilling and reskilling programs
  • Managing the costs of upskilling and reskilling program

3. How can upskilling and reskilling be used to improve the workforce?
There are a number of ways in which upskilling and reskilling can be used to improve the workforce:

  1. Providing training and development opportunities for employees to learn new skills or improve their existing skills. This can be done through formal training programmes, on-the-job training, or e-learning platforms.
  2. Offering incentives for employees to upskill or reskill. This could include financial rewards, paid time off, or other benefits.
  3. Encouraging employees to share their skills and knowledge with others. This could be done through mentoring programmes, peer-to-peer learning, or other forms of knowledge sharing.
  4. Creating a culture of lifelong learning within the organization. This could involve promoting learning and development opportunities, supporting employees to learn in their own time, and recognising and rewarding employees for their efforts in upskilling and reskilling

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