Highlights:

• 97 million new jobs requiring tech skills will need to be filled by 2025, according to the World Economic Forum’s Future of Jobs Report.
• Reskilling current employees is more cost-effective than firing staff and rehiring new employees with different skill sets.
• Investing in reskilling shows the company cares about its employees and motivates them to take on new challenges in their current roles.

Every company — no matter the industry — is underpinned by technology. Over the last decade, the information and communications technology (ICT) sector has seen massive growth, increasing the demand for a skilled tech workforce. For companies to maintain their market share or grow their business, your workforce must have the skills required to operate, maintain and improve the technological platforms that underpin your business.
 

There is no longer a wait-and-see approach when it comes to reskilling people into tech. Worldwide IT spending is projected to total $4.5 trillion in 2023, an increase of 2.4% from 2022, according to the latest forecast by Gartner, Inc. Over the next two decades, 42% of the current workforce will be impacted by automation and technology. Manufacturing jobs are a prime example with automation taking over 1.7 million jobs.

While artificial intelligence (AI) is about to upend entire industries and make jobs and skills redundant, what people do not consider is the number of new jobs AI is creating. We are on the cusp of AI’s potential with the release of ChatGPT and a windfall of competitors coming onto the scene. The speed at which we will see rapid change and the possibilities of AI will accelerate faster than any technology we have seen in our lifetime. And those possibilities mean new jobs that will require tech workers. In fact, the rise of AI is fueling demand for specific skill sets, such as data science and data analytics.

According to the World Economic Forum’s Future of Jobs Report, 97 million new jobs requiring tech skills will need to be filled by 2025. We are starting to see this now with the labor shortage across the country.

When we look at the breakdown of the workforce holistically, the ugly truth is there is still an alarming lack of diversity in the tech industry. With 97 million new jobs expected, there is an opportunity to tap into a diverse talent pool, solving the talent shortage and breaking down the barriers for individuals, who have faced significant systemic inequality or other obstacles to full and equal participation in the labor market.

The solution to the labor shortage is within America’s borders, but as recruiters, we need to focus on the candidates right in front of us — our internal teams — and provide fair and equitable opportunities to all.

From One Career to the Next

According to a Gallup study commissioned by Amazon, 57% of workers are looking for opportunities to upskill and reskill at their current place of employment. That fact should light a fire under any leader and make them move quickly.

Employees recognize the shifting market and are willing to learn new skills to stay at their workplace. As employers, rather than firing staff and rehiring new employees with different skill sets, it is significantly more cost-effective to invest in corporate reskilling opportunities and retain members of their current talent pool. By training the existing talent to learn new skills, organizations can retain talent, hold onto important historical knowledge of the company, create new opportunities to build employment engagements and address the shifting needs of the business.

Let us take a look at someone in administration. AI and automation have already made major parts of day-to-day tasks quicker and, to be blunt, more obsolete. That said, administrators know how the organization operates and regularly work with inputs and data. These types of workers are an asset to the company. By demonstrating the career growth opportunities and the support they would receive, organizations can level up their workforces and avoid onboarding new talent.

When an employer chooses to invest in their staff, they can retain employees with institutional knowledge of the business that already fit within the company culture. When we say reskilling options, it is no longer just learning to code or build a website. It is a variety of new skills and programs like learning management software (LMS), learning experience platforms (LXP), and bootcamps that are providing real opportunities to take advantage of this accelerating way of business.

Corporate Reskilling Is Needed to Future-proof the Organization

Recently, there has been a wave of high-profile cyber-attacks on companies, including Dole Food Company, stressing the need for cybersecurity in all industries. These cyber-attacks have caused $457 million in lost income and have been devastating to the bottom line of companies on the receiving end of these attacks. To avoid significant repercussions, immediate investment and training in these areas will only provide further protection.

Training Programs Need to Be Creative to Match the Tech Industry's Growth

The speed of change in tech also needs to be addressed. A good reskilling program is creative and best suited to the company. As professionals, we need to forecast changes in our industry and be proactive in our approach.

To begin, professionals have to take inventory of where the organization currently stands and identify areas of opportunity. For example, at Lighthouse Labs, we recognized the need for more diversity in the tech industry. Working with community organizations and post-secondary institutions across Canada, we developed the ‘ICT Boost’ program through which we are targeting equity-deserving students and providing skills training so they have equal access to entry into the tech industry. Not only is this solution addressing the need for more talent, but it is providing the needed infrastructure to make more equitable training opportunities. It will also fortify tech with more diverse insights – which is crucial as AI continues to intensify industry-wide.

Businesses must identify these barriers and develop creative solutions to allow equal access to their industries. Reskilling partnerships are an effective way to work with another organization and target a larger, diverse talent pool.

Benefits of Reskilling for the Employee

Investing in reskilling shows the company cares about its employees, and it motivates them to take on new challenges in their current roles. Upskilled and reskilled employees stay longer at their companies than external hires. It also allows employees to try something new and develop interests in areas they normally would not get exposure to.

Reskilling can result in higher job wages and accelerate career growth for employees. At Lighthouse Labs, our female graduates earn 25% higher salaries after graduating from the program than they would have earned on their original career trajectory with market-rate raises. That means they earned $170k more in salary in their first five years than if they had stayed on their original career path.

Benefits of Reskilling for the Organization

When employees are satisfied and motivated to grow within the organization, it has many benefits for the business. Taking a creative approach to solving the demand for skilled workers demonstrates that the company is innovative and cares about its employees. This results in attracting top talent and being a leader in the market. The company’s reputation grows, and competitors take notice.

Employees are also more likely to stay with the company when they are valued, decreasing the costs of high turnover and training. When hiring someone new to the company, they have to be taught how to use software, company protocols and policies, whereas current staff already know this, so reskilling can save costs here.

As employees expand their skill set, they can add more value to the company by participating in business conversations and learning more about how the business operates on a greater scale. Knowing different roles allows employees to problem-solve and think strategically about holistic solutions.

Creative Solutions Are the Solution to the Labor Shortage

With automation reinventing the workplace, there is a unique opportunity for Americans to tap into different sectors, earn more money and have greater job satisfaction. Employees need to adapt to their business’ needs by learning new skills, allowing them to fill the growing demand for job openings in booming industries like tech.

As employers, we play a major role by providing these opportunities for our existing staff and enabling them to grow professionally. To reduce the labor shortage, business leaders must think creatively to reskill their workforce and provide equitable opportunities for all.

The workplace has evolved, and we must evolve with it. Automation and AI are here to stay, so companies must adapt and look out for their employees to ensure they are set up for success within the business while addressing the business’ needs.

Author Bio

Jeremy Shaki is the Co-Founder of Lighthouse Labs.

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