We’ve learned over the last few years that the job market can swing quickly. In the post-COVID era, talent strategies are further complicated as we continue to figure out remote and hybrid work, return-to-office mandates, and the ever-changing needs of our employees and customers.

This has raised questions about how companies can deliver innovation and return on investment (ROI) when hiring can be challenging – due to scarcity of talent, changes in the economy or whatever complexity comes next. With the digital skills gap ever-expanding, C-suite executives are forced to look internally for solutions to help them thrive in the face of uncertainty.

Yet, we find that many organizations struggle to identify digital skills, creating obstacles to delivering improved products to customers. The inability to cultivate talent stems from the struggle to integrate technology and a digital mindset into all facets of learning & development (L&D). The typical response is to hire externally. Yet, this can be risky, expensive and detrimental to building a culture of continuous learning.

A strategy that focuses on looking externally contributes to poor retention rates, even amid wider tech industry layoffs, as over half of the workers across tech surveyed by Hired in late 2022 were looking to change jobs. Maintaining a strong internal environment where employees feel motivated and empowered to grow, mature and develop not only results in productivity but also improved team chemistry. Otherwise, we risk constant turnover, decreased employee engagement and poor ROI.

To combat this, organizations must have a strong culture centered around growth, upskilling and development – with a focus on both technology and mindset. Companies can cultivate talent and maintain productivity no matter the economic environment through the following tactics:

Study how Team Members Enjoy Learning and Prioritize Technology-Focused L&D
Technology-based learning approaches gain insights into progress, help employees learn in context to roles and provide a respite from day-to-day work. Research from Procedia found that adults have better learning outcomes when it is fun and enjoyable.

In the past, we’d seek out learning experiences with examples and language that spoke to our business and industry. In theory, this provides opportunities to connect learning to business goals, but we can go much further. We can use cloud, AI and extended reality (artificial reality, mixed reality and virtual reality) to recreate realistic situations. We can leap beyond the page and incorporate experiential learning to enhance how we connect, collaborate and engage in a world of dispersed workers.

This is applicable to all industries, as every role now relies on technology for success. Software engineers and testers can learn how to analyze large swaths of data through visualization, apply application security, low code development and more. In plant operations and warehouses, workers can walk through real-life scenarios, mitigating risk and preventing failures on the factory floor.

Utilizing programs like this expands not only engagement but also accessibility. Those who cannot attend in-person sessions can also participate in these L&D sessions. This will allow all employees, not just those in the office, to access the necessary tools to become more productive, creating more value for the entire organization.

Ensure That Growth Opportunities Are Available Through Formalized Programs
One reason many employees feel disillusioned, even amid upheaval in the industry, is the lack of growth opportunities. According to the TEKsystems 2022 Diversity, Equity and Inclusion in IT Report, only 44% of organizations have development programs, including reverse mentorship and leadership development for underrepresented workers. This finding underscores the room for improvement and the need for more opportunities to create and provide programs to cultivate digital skilling.

For example, on operations teams, training around compliance and regulation, such as relevant laws or frameworks to understand privacy and protection requirements, can provide less experienced workers with the necessary administrative knowledge of the business to reach more prominent roles in the industry.

To minimize this gap, corporations can also utilize programs beyond upskilling, including coaching, mentoring and employee resource groups. Technology can help advance the competencies of mentors and their mentoring skills, match up individuals with more practiced coworkers and track the impact. This can help entry-level employees gain confidence and learn valuable lessons from experienced professionals.

Employees need to feel certain that their organization is invested in their future. This has the benefit of improving retention and productivity. Fostering a positive learning environment where growth opportunities are not only evident but abundant is essential for employee engagement. By using technology, we can improve the effectiveness of such efforts and better understand the impact of investments.

Invest In L&D Programs Even Amid Hiring Freezes, Layoffs and Economic Downturns
When organizations face financial challenges, they make cuts. One solution some find is to reduce L&D, as the output and contribution to ROI are seen as more future-oriented. It may be easy to view it as extraneous, but instead investing further can increase the capabilities of a company, improve customer satisfaction, accelerate innovation and win new business.

Organizations that prioritize skill enrichment have a better chance of raising revenue, retaining value and reducing costs, as they don’t have to spend fruitless funds on recruitment. While the short-term cost of investing in L&D may be daunting, the long-term reward can reduce inefficiencies, increase team capacities and deliver more profit.

This is more applicable to younger and entry-level employees. Gen Z employees are far less likely to stay at their current jobs for more than a year, with over 65% planning to leave their current role in under 12 months, according to the “2022 Great Resignation: The State of Internal Mobility and Employee Retention Report” from Lever. Yet, nearly 20% of those surveyed said that employers who offer upskilling/reskilling are more desirable.

Companies need to invest in programs that help solve the challenges of today – but also the competencies that can respond to the challenges that have yet to emerge. Taking a proactive approach to learning provides companies with a competitive advantage in the race for digital skills, ultimately leading to better business growth.

The last several years have proved that employees are willing to leave companies if they are not convinced their employer is invested. Keeping talent year-over-year leads to an improved culture and end product as employees are more familiar and comfortable with their workspace and role. An investment in continuous learning in the workplace helps not only to attract and retain talent but also to prepare us for whatever challenge approaches next.