Reskilling staff can create cost savings of nearly £50,000 per employee compared to bringing in new talent, research has found.
A report from the Financial Services Skills Commission (FSSC) and PwC UK has found that financial services firms could save up to £49,100 per employee when they reskill an employee, compared to hiring someone new with the relevant skills.
Gemma Bullivant, HR coach and consultant, warned that retraining or career changes are “rarely successful” when they are reactive, highly emotive, or surrounded by urgency, as is the case in a redundancy situation. But, she said: “The concept is sound, and the report helpfully points to the need for long-term planning,” which she added was “woefully undervalued”.
This dilemma strengthens the case for HR to have a seat at the top table, she said, explaining that by having a chief people officer involved in long term strategic planning, firms could connect the workforce talent to the business plans.
Bullivant also suggested that, through strategic workforce planning, “upskilling can then form part of the cultural fabric of the organisation” by introducing career pathways, secondments, interim step-up roles, and an integrated L&D framework.
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