Upskilling for future world of work

There is an expected mismatch between current skills and those at the heart of 4IR. Markets are evolving in response to business technological advancements. Consequently, some skills and industries will become obsolete, leaving employees unable to participate in the economy. As a result, there is a need to transform the world of work by reskilling and upskilling employees so that they can fully participate in the future of work.

The World Economic Forum’s 2021 report predicts a significant shift in labor distribution between humans and machines. Employees must be reskilled in technology, critical thinking, and problem solving, among other skills, by 2025. Technical skills now have a half-life of less than three years, according to IBM. The implications for existing talent are that core skills will almost certainly have to change. As a result, every job, department, and company require a “upskilling revolution,” and the time to start is now.

Upskilling and reskilling are not analogous. Upskilling entails training employees to improve their current job skills, whereas reskilling entails introducing employees to new skill sets. The fear that most employees will lose their jobs because of technological advancement is unfounded; on the contrary, this change will open opportunities for different types of roles, necessitating the need to reskill and upskill employees. Companies must embrace employee reskilling to fill these new roles.

Reskilling and upskilling in South Africa

As a HR leader or an SDF, you might have noticed that upskilling and reskilling have gain traction in the recent years. In fact, you might need no reminder that the date for submission of the Workplace Skills Plan (WSP) and Annual Training Plan (ATR) is fast approaching – 30 April, and this is an opportunity to reflect on current skills and how they can be improved. The government is offering employers the opportunity to consider reskilling and upskilling their employees.  

Upskilling for future world work at Performance Development Group

Performance Development Group has identified five skills that will be in high demand by 2025 and has included them as supplementary modules in all our training solutions.

• Technological skills. Artificial intelligence, big data, virtual reality, blockchains, and other technological innovations are driving 4IR. As companies introduce new tools to automate tasks, employees with advanced technical skills will be required to operate the tools.

• Emotional intelligence, such as showing empathy and working collaboratively in teams.

• Cognitive skills such as creativity and critical thinking. Analytical skills are expected to become core competencies and necessary skills in the future.

• Interpersonal skills. Communication will be the vehicle for effectively transferring information in the 4IR, and knowledge sharing will be critical. Employees must be trained to effectively communicate with suppliers, coworkers, and, most importantly, clients.

• Leadership skills. The ability to get the most out of employees, achieved primarily through effective leadership, will be required for the future workforce.

Why reskill when you can outsource

Businesses can choose to recruit, outsource, or reskill current employees to fill new roles created by technological advancement. Reskilling is the most cost-effective of the three options, particularly in South Africa, where the Skills Development Act 97 of 1998 established a levy system to fund all upskilling and reskilling projects by employers.

Cost aside, employee reskilling and upskilling allows businesses to stay competitive in the face of constant technological changes and makes businesses more adaptable to the rise in automation. Furthermore, after recruitment, companies will almost certainly need to reskill and upskill new employees into their new roles – it makes far more sense to do so with existing employees anywhere!

Most major corporations have already decided to embrace employee reskilling. Amazon has set aside funds to reskill more than 30% of its employees. Fortunately, as a South African employer, you may not need the budget of the world’s top 100 fortune companies to begin reskilling your workforce. The first step is to submit the WSP and ATR report by April 30th, which allows you to receive 20% of your Skills Development Levy contributions back as mandatory grants to reskill and upskill your employees. Employers can also apply for discretionary grants to further train their employees.

Quick facts

Performance development Group is SETA and QCTO accredited training provider.

WSP and ATR submission is a B-BBEE compliance requirement for scoring points under the Skill Development element.

Companies that commit to reskilling and upskilling their employees can receive tax breaks of up to R120 000 per disabled learner and R80 000 per able-bodied learner from SARS.