COVID has transformed traditional business operations into automation-driven, and digitalization resulting in workforce skills change in demand. From large corporates to small-sized business, everyone pivot to a digitalized business to maintain the competitive advantage and survival. As a result, the value of a corporation has migrated away from tangible assets toward intangible assets such as intellectual property, patents, and brand recognition.

The transition is healthy; however, the accelerated progress and needs have been challenging for returning workforce. It was not the same job routine in the post-pandemic era. It was estimated that more than 100 million workforces are required to shift their jobs by 2030, encapsulating cognitive skills, digital skills, emotional skills, etc. Although this shift was expected before COVID, the transition has accelerated during the post-pandemic era. In a recent study, McKinsey found that 87% of executives faced a skills gap in the workforce and only half of them had a clear sense of how to address the issues.

Due to the financial constraints during the pandemic, it is hard to invest in employee training and development. According to Hancock & Schaninger (2020), 29% of organizations planned to invest more in learning and development in the next 12 months, while 38% planned to invest less. Nevertheless, management leaders need to understand the urgency to develop employees' skills to maintain business sustainability in the long run concerning competitive advantage in the market. Moreover, post-pandemic, the new working pattern has raised questions about how employees can adapt to the new demand and how businesses could support employees to perform their jobs.

Upskilling and reskilling are more investment beneficial than hiring new employees into a team. We are all aware that the cost of recruiting post-pandemic is too high. The hiring cost is estimated at around $4425 in a recent study conducted by  Boskamp (2021), including costs spent recruiting, fees for advertising, medical screening, background checks, and other recruitment-related tasks.

Employees with training development opportunities are likely to be happier and believe they have a bright prospect. Employees who know they are working for their future will better their lives and develop a deep sense of purpose personally and professionally. In addition, it is crucial to date with new trends in businesses. Thus, reskilling and upskilling ensure the workforce keeps posted with recent trends in respective industries and suggests better organization prospects that guarantee a competitive advantage in the market. After all, no employees want to work at a company that fails to value their intellectual capabilities.

According to research data shown below conducted by McKinsey & Company (2021), 43% of companies are expected to face skills gaps in their respective industries post-pandemic. Post pandemic has challenged companies to plan for talent management of their workforce to deal with new norms. Employees with upgraded skills tend to showcase their talent to handle critical challenges, simultaneously boosting company image, promoting competitive advantage.

Seeing how critical upskilling and reskilling are in business, there should be no doubt about investing in employee talent and growth. Moreover, ensuring business sustainability post-pandemic is significantly challenging. Employees' intellectual capabilities play a crucial role in tackling all the challenges to keep up with the fast-paced digital environment.