Overcoming the Skills Gap: Upskilling and Reskilling in the BPO Industry

Upskilling and reskilling are essential for companies to keep their teams prepared for future. These process help employees learn new tech, analyze data, and improve customer service. This is becoming increasingly important due to the rapid advancements in technology, the rise of AI and automation, and changing customer expectations. To remain competitive, BPO firms must prioritize upskilling and reskilling their workforce.

The World Economic Forum’s Future of Jobs Report 2023 predicts that by 2025, half of all employees will need reskilling due to automation and technological advances. This is a crucial consideration for BPO firms, which handle large volumes of customer interactions and data processing.

Let’s understand the terms first:

• Upskilling: Enhancing employees' current skills, similar to a software upgrade.

• Reskilling: Training employees in entirely new skills, enabling them to move into different roles within the company.

Why Upskilling and Reskilling Matters

Upskilling and reskilling are important for several reasons:

• New tech like AI and data analytics need new skills from BPO employees. Employees now need not only customer service skills but also the ability to navigate complex software systems.

• Customers want more personalized service, often online. This requires employees to be proficient in data analysis, customer relationship management (CRM) tools, and advanced communication platforms.

• BPO roles are changing, requiring new skills and presenting new challenges. To keep pace with all the technological advancements, client needs and customer expectations, it is necessary to have a skilled workforce ready.

A recent survey by World Economic Forum found that Training employees to use AI ranks third among company skills-training priorities in the next five years and will be prioritized by 42% of surveyed companies.

Strategies for Effective Upskilling and Reskilling Programs 

Given these challenges, BPO firms are increasingly investing in upskilling and reskilling. These strategies not only fill immediate skills gaps but also create a more adaptable workforce ready for future changes.

Leading BPO firms are implementing internal training programs and partnerships with educational institutions to offer continuous learning opportunities for their employees. LinkedIn’s 2023 Workplace Learning Report found that 94% of employees would stay at a company longer if it invested in their learning and development.

• Example: Company like Advantage Communications have implemented in-house training programs focused on skilling employees on new LOBs, and customer service platforms, helping employees stay current with the latest updates.

While technical skills are critical, soft skills like emotional intelligence, empathy, and problem-solving are key for great customer service. As automation handles more routine tasks, employees are increasingly needed to manage complex customer issues and offer personalized support.

According to LinkedIn’s 2024 Workforce Learning Report, 91% of L&D professionals rated human skills (or soft skills) as highly important. A recent study from the University of Michigan found that companies investing in soft skills training for employees saw an 11% boost in productivity, demonstrating the effectiveness of such training in improving performance. 

E-learning platforms, simulations, and micro-learning are great tools for upskilling and reskilling. Employees can access training modules on-demand, allowing them to learn at their own pace and apply new skills in real-time.

• Online classes and webinars can help employees learn new digital and soft skills.
  
  
• Integrating micro-learning (or even "nano-learning")—short bursts of instruction—helps employees make incremental progress during their daily work.

The Long-Term Benefits of Upskilling and Reskilling

Investing in upskilling and reskilling programs benefits both employees and employers. For BPO companies, these means:

• Higher customer satisfaction as employees are better equipped to handle advanced technologies and provide personalized support.

• Improved employee retention and engagement, reducing turnover and associated recruitment costs.

• Increased adaptability to future industry changes, making the company more resilient in a rapidly evolving market.

For employees, these opportunities create pathways for career growth, job security, and higher job satisfaction.

By investing in employee development, BPO firms can meet today’s demands while also future-proofing their operations for the challenges ahead. At Advantage Communications, we are committed to fostering a culture of continuous learning, helping our employees grow and succeed in a rapidly changing industry. Contact us today for a free consultation.