EMPLOYABILITY & LEARNING CULTURE

Boston Consulting Group | Is Your Upskilling Program Paying Off? | This study by BCG explores how organisations can determine whether their upskilling programs deliver measurable returns on investment (ROI). It outlines critical metrics that assess business alignment, performance improvements, and employee engagement, providing clear steps for ensuring that upskilling efforts contribute to sustainable growth and talent retention.

DID YOU KNOW?

DID YOU SEE?

NEED AN EXECUTIVE SUMMARY?

Introduction

As the need for new skills intensifies, businesses ramp up investments in upskilling programs to stay competitive. Yet, many companies need help assessing whether these initiatives deliver tangible business results. For HR leaders, business executives, and sustainability professionals, understanding how to measure the ROI of upskilling programs is critical to aligning these efforts with broader business objectives and ensuring the development of a future-ready workforce. This report offers a practical guide to evaluating the success of upskilling efforts through well-defined, actionable metrics.

Key Insights

• Business alignment is critical: Companies must ensure that upskilling programs support specific business outcomes such as innovation, productivity, or employee retention. Programs without a clear connection to strategic goals are less likely to succeed.

• Measurable impact: To determine the effectiveness of upskilling, businesses should focus on hard and soft metrics. Examples include performance improvements, employee satisfaction scores, and financial metrics like revenue growth or cost savings from increased efficiency.

• Engagement drives success: Upskilling is more effective when employees are actively engaged. Engaged employees are up to 40% more likely to improve their performance post-training, emphasising the need to foster strong participation in these programs.

• Iterative process: Successful upskilling initiatives are continuously refined. As business needs and skill requirements evolve, companies must revisit and adjust their programs to keep them relevant and impactful.

Recommendations

• Align upskilling programs with business objectives: Before launching a new initiative, define the specific business outcomes the program aims to achieve, such as boosting productivity or reducing turnover. Ensure alignment with long-term strategic goals.

• Develop a balanced measurement framework: Use a mix of quantitative and qualitative metrics to assess the impact of upskilling. For example, track productivity changes and employee feedback to evaluate the program's success.

• Encourage employee engagement: Upskilling works best when employees are motivated. To enhance engagement, create clear pathways for career progression tied to skill acquisition and communicate the benefits of participation.

• Regularly review and iterate programs: As business priorities and market conditions shift, regularly review upskilling programs to ensure they align with your organisation’s evolving needs.

Conclusion

Evaluating the ROI of upskilling programs is crucial for ensuring these efforts deliver sustainable value. Organisations can turn upskilling into a strategic advantage by aligning programs with specific business outcomes, measuring their impact through comprehensive metrics, and fostering employee engagement. Continuous iteration will help keep these programs relevant, positioning the organisation to thrive in an ever-changing talent landscape.

Join 10,000 and follow me on LinkedIn here.

You can register for this newsletter here.