The Skills Gap Conundrum: Retraining vs. Rehiring

Welcome to another edition of The PNH Weekly, where we delve into the world of Human Resources and more! Today, we’re tackling a challenge familiar to HR professionals everywhere: the skills gap.

Remember Sarah, that star HR manager you’ve always admired? Well, she’s facing a tough decision right now. Her company needs software engineers with the latest cloud technology skills, and she needs them yesterday. But there’s not a single qualified candidate in sight. Should she embark on a long, expensive hiring search? Or invest in upskilling her existing developers, even though it might slow down projects temporarily?

This is the skills gap conundrum, and Sarah’s dilemma is playing out in companies across the globe. The world of work changes fast- think about how artificial intelligence and automation are transforming whole industries. It’s no wonder that a study by Korn Ferry found more than 85 million jobs might just go unfilled because there just aren’t enough skilled people to occupy them.

So, what’s the answer for Sarah, and for all of us navigating this tricky talent landscape? Let’s dive in!

Retraining: The Homegrown Talent Option

Think of it like this: your existing employees already know your company culture, they’re invested in its success. Retraining them taps into that loyalty. It can save time and money compared to a lengthy external hiring process. Plus, think of the morale boost when employees see the company investing in their future!

But let’s be real- retraining isn’t a magic wand. If you need a quantum physics expert and your team has been coding websites, it’s probably not going to cut it. And remember, during training, productivity might take a temporary dip.

The Role of Technology in Upskilling

Let’s face it, technology isn’t just transforming industries- it’s revolutionizing how we learn. When it comes to upskilling, tech offers game-changing solutions:

Beyond the Classroom

Online courses, micro-learning modules, and even virtual reality simulations are making upskilling far more dynamic and engaging. These platforms often let employees learn at their own pace, fitting their training around busy schedules. A Brandon Hall Group survey found that e-learning takes nearly 40% to 60% less time to complete than your traditional classroom-based courses.

Personalized Learning Paths

Adaptive learning platforms powered by AI can tailor training to an individual’s skill level and goals. This means no more wasted time on things they already know, making upskilling more efficient.

Expanding Access

Tech-driven learning can break down barriers. Employees in remote locations or those with non-traditional work hours can benefit just as much as those in the main office.

But here’s the thing: technology is a fantastic tool, not a magic bullet. For the best results, blend it with other learning approaches. Mentorship programs, hands-on projects, and a little human connection still go a long way in solidifying new skills. Companies finding the sweet spot between tech and personal development are the ones seeing the biggest impact from their upskilling efforts.

Rehiring: Seeking Out Ready-Made Skills

You might have invested enough in upskilling, but sometimes, you’ve just got to find that person with the perfect skill set. Rehiring opens up a wider talent pool, giving you faster access to those desperately needed skills. If time is of the essence, this could be the way to go. Plus, new hires bring a fresh perspective that can shake things up- in a good way!

Of course, the hiring market is more competitive than ever. That perfect candidate? They probably have a few other job offers on the table. And don’t forget the costs involved in recruiting, onboarding, and the time it takes for a new hire to ramp up fully.

Rehiring Basics: When It Makes Sense

Sometimes, the best talent is found outside your existing team. Here’s when rehiring should definitely be on the table:

• Critical Skills You Can’t Develop Internally: If you need expertise that’s simply too specialized or time-sensitive to cultivate in-house, a targeted external hire could be your fastest path to success.
• Needing Fresh Perspectives: New hires bring a valuable outside viewpoint, potentially challenging the status quo and spurring much-needed innovation.
• Company Growth Outpaces Your Training Capacity: Are you expanding rapidly? Upskilling might not be able to keep up with the sheer number of new roles you need to fill. Rehiring can help you scale up your workforce more quickly.

Did You Lose Some Great Talent?nbsp;

Sometimes former top performers leave for good reasons (relocation, family, or others.). If their circumstances have changed and they’d like to come back, it could be a win-win. A study by UKG found that nearly 40% of employees would consider returning to a previous employer, making ’boomerang employees’ a valuable talent pool.

But remember, rehiring, however strategically done, will always have its costs. Factor in advertising, the time investment in interviewing and onboarding, and the potential wait before a new hire hits their full productivity stride.

The Smart Solution? It’s Often a Blend

The most successful companies aren’t choosing one or the other- they find a smart balance. Build a strong internal learning and development culture so your workforce is constantly adapting. But don’t be afraid to strategically recruit to fill essential roles or inject specialized skills.

According to a Deloitte study, organizations that strategically combine internal upskilling with external hiring are 2x more likely to meet their talent needs. It’s about understanding your specific needs, your company culture, and the urgency of the skill shortage you’re facing. There’s no single right answer for everyone!

Well folks, we hope this breakdown sparked some ideas and helped you think strategically about addressing the skills gap. Stay tuned for more insights from The PNH Weekly... until then, happy hiring (and upskilling)!