77% of jobs will be disrupted globally, creating a massive skills gap. Some organizations have increased hiring to fill skills gap, but there isn’t enough job-ready talent available. This raises talent prices that could skyrocket in five years if enough talent is not equipped with in-demand skills.
Instead of hiring externally for new-age jobs, that often require extensive and expensive headhunting, HR teams can look closer home. Reskilling existing workers over hiring external talent could save ~22% in talent acquisition costs.
However, the cost is not the only issue. There is also the issue of infrastructure disruption that could cause severe damage to organizations.
For instance, there aren’t enough skilled cybersecurity workers to fill over 70,000 jobs in the US, which puts the government and businesses at risk. Organizations can cover skill gaps and boost their employer brand by reskilling adjacent talent.
Reskill First, Hire Later
Reskilling and upskilling employees help organizations improve organizational citizenship behavior, employee retention, and cost-effectiveness. Reskilling or upskilling can boost employee morale and lets them focus on personal growth.
It helps users create the full employee reskilling journey, from choosing the target role to a detailed transition, including median experience, cost to the company, and skill-acquisition courses.
Draup’s Reskill Simulator can assist workforce planning teams in evaluating and planning strategic reskilling and upskilling activities. It enables you to run several simulations to identify reskilling opportunities inside your organization. It is designed to help businesses close skill gaps and train their personnel in a cost- and time-effective manner.
The simulator also helps you identify employees who may benefit from reskilling and create a customized plan with learning materials and estimated time to master new skills. It informs workforce planning teams about precise job transitions to create cost-optimized reskilling programs that boost staff productivity and resource efficiency.
Upskilling Employees Using Draup’s Reskill Simulator
Workforce planning teams can evaluate role transitions in a step-by-step manner:
1. Search in-demand and disrupted roles – Workforce planning teams can look for roles they want employees to transition and are in high demand and roles disrupted due to current circumstances or those in decline. They can prioritize job roles according to the requirements.
2. Set preferences and review opportunities – Users can set preferences for the metrics under the reskilling propensity index module to view the most preferred transitions and learn more about the entire model and cost-benefit parameters.
The platform then displays multiple transitions for the selected and disturbed roles for using leverage. Each transition can be analyzed for feasibility.
Users can access the reskilling propensity index scores and metrics that create the RPI factor for enlisted transitions. Users can see suggested transitions and pick the best one. Opportunities include time to bridge skills and cost benefits.
Internal stakeholders can use these transitions to make informed upskilling or reskilling decisions.
3. Select opportunities and set preferences – After analyzing each transition, users can choose the finest prospects for their firm. Then the simulator lets users define preferences for each transition for –
- Experience range in the role
- Current experience range
- Employee location
- Headcount involved
4. Identity employees and review plan – Workforce planning can suggest employees reskill or upskill. Finally, users can analyze the plan based on their choices, cost benefits, and workers, allowing them an appropriate transition plan for the chosen staff.
Draup’s Cost-Benefit Model
Draup’s cost-benefit calculator helps users calculate the cost savings of reskilling instead of employing a new employee. It has three categories: very positive, positive, and negative. Users can rapidly find preferred transitions by categorizing the analysis.
- Strongly positive indicates cost benefit above $10,000
- Positive indicates benefit up to $10,000
- Negative indicates lower than zero
Each reskilling pathway’s cost-benefit is calculated by subtracting employee termination and hiring costs from reskilling current employees. Employee termination and hiring variables include severance compensation, hiring cost, new hire payout, etc.
Draup for Talent lets workforce planning teams plan, hire, and skill a future-ready workforce. It gives unique role- and skill-level insights and helps workforce planning teams plan location- and role-based workforces.
Draup’s strong AI engine applied to 750 million profiles enables HR leaders to locate and employ the necessary skills and implement cost-optimized reskilling programs to transform their global workforces and become future-ready.
Workforce planning teams can use Draup’s Reskill Simulator to:
- Find reskilling opportunities in your organization.
- Build a business case with a cost-benefit analysis.
- Find good candidates in your workforce for reskilling efforts.
- Help you make a personalized learning plan.