Reskilling could save firms £50k compared to hiring new talent
Reskilling staff can create cost savings of nearly £50,000 per employee compared to bringing in new talent, research has found.
A report from the Financial Services Skills Commission (FSSC) and PwC UK has found that financial services firms could save up to £49,100 per employee when they reskill an employee, compared to hiring someone new with the relevant skills.
Reskilling a financial services employee costs on average £31,800, while the ‘redundancy and rehire’ approach carries an average cost of £80,875, the data revealed.
However, the report found only 14 per cent of financial services CEOs made significant progress establishing an upskilling programme to tackle this issue despite a “clear business case” in favour of reskilling and strategic workforce planning.
This report is clearly targeted at one sector, but arguments could be made that similar benefits could be seen in other types of business