Business leaders must invest in retraining existing workforces before they are forced to replace incumbent employees with those who have specialist digital skills, global talent acquisition and management specialist Alexander Mann Solutions, advises.

The recommendation follows the recent announcement that Lloyds Banking Group will cut 6,000 existing jobs in the UK, while simultaneously creating 8,000 new roles, in an effort to strengthen its capability to offer customers new ‘leading-edge’ digital banking products and services.

Existing Lloyds employees whose jobs are cut will be offered the chance to apply for new roles, however the bank has admitted that some specialist roles will need to be sourced externally.  

Vanessa Byrnes, Sector Managing Director, Retail Banking & insurance, Alexander Mann Solutions, commented, “While we have long advised that continual professional development is crucial to ensure that teams remain engaged and productive, amid the digital revolution investing in upskilling has never been more vital.”

Alexander Mann also pointed to research from PwC that found 80% of CEOs admit they are concerned about finding and hiring employees with digital skills.

“In our experience, retraining and redeploying internal resources is one of the most efficient ways of bridging future skills gaps,” Byrnes said. “When faced with the option to ‘buy, build or borrow’ expertise, growing your own talent comes with numerous benefits, not least the retention of culture and reduced recruitment costs.”

“However, in order to know exactly what skills need to be developed to ensure an organisation is future fit, business leaders will need to map and analyse existing capabilities against projected demand,” Byrnes said.