Upskilling and reskilling are emerging as critical strategies for preparing for a cloud-first future in financial services. But what are the benefits, and what is the difference between the two terms?
McKinsey research shows that the successful development or deployment of skills is 20% more cost-effective than a “hire and fire” approach. The fast pace of technological change, especially when most financial institutions are looking to modernise their infrastructure, means new skills will be not just a value-add but a necessity.
Despite this need, the skills gap only continues to grow. As banks prepare for large-scale shifts to a cloud-based future, they are finding it increasingly challenging to hire best-in-class talent.
Software architects capable of working across complex IT stacks at will are challenging to find and expensive to secure. This is where an organisation should consider the possibilities of upskilling or reskilling existing talent within the company.
What is upskilling?
Upskilling involves taking an employee with specific skills and improving their knowledge. This enables them to handle a range of new tasks effectively or dramatically improve their capabilities in their current position.
Many companies leave this at the worker’s discretion by providing access to certification courses or discounted learning programmes. Leading organisations, however, are taking a more proactive approach by dedicating time and resources to in-house training and development courses.
Skilled tech workers are valuable commodities in the job market. Upskilling creates a means through which an enterprise can develop its teams without embarking on expensive and time-consuming searches for the perfect candidate. Why look for them when you can just create them?
Upskilling examples
- Providing on-demand knowledge courses to employees through an internal portal
- Utilising the expertise of your existing subject matter experts to craft tailor-made content
- Create a simple self-assessment survey to identify employee goals and skill gaps
What is reskilling?
Unlike upskilling, which involves improving workers’ knowledge and capabilities, reskilling focuses on teaching them entirely new skill sets. Often – but not always – these skills will be tangentially related to the employee’s existing abilities.
At first glance, it may seem more straightforward to hit the job market to look for someone with the specific background and knowledge your company needs. Yet, it can be time-consuming and expensive in a competitive market like financial services, where financial institutions are chasing graduates and engineers coveted by top tech companies.
New hires must be found, interviewed, vetted, and then tempted to join your company. Even afterwards, there may be weeks of onboarding before you start to see a return on your investment.
Reskilling an employee removes all of these factors. In the months it took to find an external candidate, your internal employee – already familiar with your processes and structure – could be trained in the necessary skills.
Reskilling examples
- Agile skills development programmes developed internally or secured externally
- Offering employees cloud speciality courses tailored to your provider of choice
- Partnerships with leading cloud specialists to provide certification and training at scale
Upskilling and reskilling – what are the benefits?
Upskilling or reskilling employees to a more senior specialised position can reinvigorate their commitment to your organisation. They will see your firm as a provider of learning and growth willing to believe in and support its team members.
When employees perceive an investment in their career development, it fuels a boost in productivity. Learning opportunities enhance job satisfaction and contribute to more favourable business outcomes.
Broadening the technical capabilities of your workforce also creates valuable adaptability within your organisation. This capacity to pivot means your firm can face future challenges head-on and provide flexibility to clients and employees – whether a change in dynamic brought on by macroeconomic circumstances (like work-from-home or pandemic lockdowns) or more granular organisational reshuffles.
Creating and nurturing top talent from within your organisation also positions your organisation as forward-thinking, employee-first, and innovative. This means when new skills are required and your ongoing initiatives cover cant, prospective candidates will see your company as an attractive destination.
Creating a cloud-first workforce in rapid time
Time-to-market concerns are high among all financial institutions aiming to lead in the industry. Uplifting the capabilities of your workforce takes time and should be done with due care. What options are available to quickly adopt and deploy cloud-native technology while undergoing a skills upgrade?
External teams can empower your organisation by creating and covering the necessary infrastructure. This gives your organisation time to hire or upskill talent ready to maintain your platform years into the future.
True cloud-native technology providers allow your employees to work hand-in-hand with highly skilled experts and engineers during deployment and development and be hands-on in real time to ensure they’re masters of the system when your platform is fully operational.
Pismo prides itself on its expertise in handling core system modernisation, having migrated millions of accounts flawlessly for clients emerging and established. Our teams are experts in their field, with real-world experience ensuring smooth cloud transitions.
We refuse to leave our customers in the dark: Pismo’s processes give real-time visibility to the customer during all stages. Your employees can monitor everything inside our platform during and after the modernisation, meaning they will have all the requisite expertise and knowledge to carry your organisation into your cloud-first future.
Get in touch with Pismo today, and let’s talk about your transformation plans.
