As an employer, you seek opportunities to optimize your inhouse talent—and sometimes, that means moving employees into different roles. Occasionally, you may face a choice: do you reskill an employee performing well at a given worksite, or relocate one who already has the needed skills?
It’s a great question. Unfortunately, there isn’t a single, one-size-fits-all answer. Let’s look at the pros, cons and costs of reskilling versus relocating employees—and how they contribute to the decision-making process.
“Reskilling” is the process of training/developing existing employees to take on entirely new tasks. It’s more intensive than upskilling, which is building on skills an employee already has.
According to the World Economic Forum, more than one billion workers will undergo reskilling by 2030 due to evolving technology and work models. So, even if you’re not doing much of it now, chances are, you soon will be.
There are significant benefits to reskilling employees. Providing workers with advancement opportunities increases job satisfaction, engagement and loyalty. It often leads to improved retention rates, which reduces turnover-related costs and productivity losses.
In one study, more than three quarters of employees said they’re eager to learn new skills. Most employees welcome reskilling opportunities.
And while each case varies, reskilling is likely more cost-effective than hiring new employees, given total recruitment, onboarding and training expenses.
On the flip side, reskilling is an investment that requires time and resources. During the transition period, employees may be less productive, impacting overall output.
And there’s always a possibility that the employee may not succeed in their new role, resulting in reduced efficiency, the need for more training—or a failed attempt.
Now, how does reskilling stack up to relocating existing employees from one worksite to another?
Relocating an employee with specialized experience and knowledge can help an employer quickly establish a presence, expand operations, or fill a skills gap at a second location. Plus, relocating a seasoned employee may well be more cost-effective than hiring and training a new employee at that location.
In addition, relocated employees will likely get up to speed faster than new hires, since they already know their companies’ processes, culture, and expectations. The quicker the transition, the less disruption to productivity.