With the Organisation for Economic Cooperation and Development (OEDD) predicting that technology will transform 1.1 billion jobs over the next decade, it is imperative that South African businesses start upskilling and reskilling their workforce to remain relevant.

At the core of this massive disruption are emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML), which are rapidly replacing some traditional roles in the job market.

A recent report by Goldman Sachs says a new wave of AI systems will have a major impact on employment markets around the world.  According to the report, shifts in workflows triggered by these advances could expose the equivalent of three hundred million full-time jobs to automation. While new generative AI technologies, such as ChatGPT, are poised to create new jobs, they are also set to decimate a lot of existing roles.

A report published in August by United Nations agency, the International Labour Organisation (ILO) reveals that generative AI is more likely to augment than destroy jobs by automating some tasks rather than taking over a role entirely. Clerical work is predicted to be the category with the greatest technological exposure, with a quarter of tasks considered highly exposed and more than half of tasks having medium-level exposure, says the ILO.

According to the OECD, occupations in finance, medicine and legal activities that often require many years of education, and whose core functions rely on accumulated experience to reach decisions, may suddenly find themselves at risk of automation from AI. 

Among other tasks, ChatGPT, developed by OpenAI, can write code, meaning the chatbot is threatening tech skills such as software development, computer programming, and data analysis among other tech skills. Media jobs, such as advertising, technical writing, and journalism may also be affected by ChatGPT and other generative AI tools. Industries such as manufacturing, agriculture, legal services, healthcare and finance are also expecting a shake-up because of these emerging technologies.

Amid this disruption, employees are concerned that these technologies will render them jobless soon. While these fears are understandable, this can have an enormous impact on productivity within businesses. This is the reason it is imperative for South African organisations to start reskilling and upskilling the talent that they have.

Upskilling and reskilling are both terms used in the context of education and workforce development, but they refer to diverse types of learning and training initiatives. Upskilling refers to the process of learning new skills or enhancing existing skills to stay current and relevant in one’s current job role or industry. An example of an organisation upskilling an employee can involve the company providing new skills to its software developer about new software upgrades. On the other hand, reskilling involves learning an entirely new set of skills to transition into a different job role or industry. It is about acquiring skills that are significantly different from one’s current skillset to adapt to changing job markets or technological advancements.

Reskilling is often necessary when an individual’s current job becomes obsolete due to automation, technological shifts, or changes in the industry. As an example, an assembly-line worker at an automobile factory can be retained to become a software developer after the factory’s operations are automated. Reskilling exemplifies forward-thinking leadership. When a role becomes obsolete, retaining it amounts to avoidable costs. Employees who catch wind of potential downsizing, thanks to technology, are prone to seeking new opportunities elsewhere. Those who opt to stay might experience growing discontent, as their responsibilities erode in significance, thereby presenting a hurdle for the company to uphold its competitiveness. By proactively equipping their workforce for what lies ahead, businesses can sidestep layoffs, voluntary exits, and the decline of morale and efficiency among their retained employees.

Both upskilling and reskilling are important strategies for individuals and organisations to adapt to the evolving demands of the job market, and ensure continued career growth and success.

These are also important, especially in South Africa, where there is a dearth in skills in fields such as ICT.

Productivity SA, a public entity of the Department of Employment and Labour, notes that the ICT skills shortage in South Africa is due to a combination of factors, including a lack of investment in ICT education, insufficient funding for research and development, and a shortage of skilled professionals in the field.

Thus, if South Africa does not upskill and reskill its labour force, the country risks falling behind its global counterparts, thereby putting the already fragile economy on the back foot.

To allow businesses to thrive, constantly training, coaching and knowledge sharing enables employees to deliver on expectations within their various departments. Skills shortages occur when the demand for specific skills exceeds the available workforce’s supply. Reskilling and upskilling allow individuals to bridge these gaps by acquiring the necessary skills to fill in-demand positions, thereby reducing the impact of skills shortages on businesses and industries. Offering reskilling and upskilling opportunities shows employees that their development and growth is valued. This can improve employee morale, job satisfaction, and loyalty, leading to higher retention rates and reduced turnover.

Hiring new employees with the desired skills can be expensive and time-consuming. Hence, reskilling, and upskilling existing employees can be a more cost-effective solution, as it leverages the investments already made in their training and experience. In summary, reskilling and upskilling are vital strategies to address skill shortages, enhance competitiveness, retain talent, and ensure a workforce that is equipped to thrive in a rapidly changing job landscape. They play a critical role in adapting to technological advancements, maintaining economic growth, and fostering a skilled and adaptable workforce.