+31(0)103400116 info@ibct-global.com
Develop or replace your employees, which is better?

In this blog post, I will share with you what recent research reveals about such an important question or dilemma I should say.

Leaders in companies ask themselves “should I either replace or develop my employees”. The transformation in technology has a substantial impact on the near future workforce. Jobs will be changed or will disappear and, in many cases, be replaced by new roles.

Click to view the infographic

Train or Replace?!

An Infographic

This infographic illustrates the results of recent research about should I either replace or develop my employees?

Leaders in companies ask themselves “should I either replace or develop my employees”. The transformation in technology has a substantial impact on the near future workforce. Jobs will be changed or will disappear and, in many cases, be replaced by new roles. In research by McKinsey (Dua, et all., 2019), individuals who need training are likely to fall into three categories: those who need to learn a few new skills and technology to remain in their current or similar roles; those who need more substantial reskilling to move into new types of jobs within the organization; and those for whom there is no up-front, immediate next job in the organization.

Train or Replace?!

Develop or replace your employees, which is better?

1- Do existing employees have advantages?

Existing employees have a significant advantage. The general decision should be to train them for the necessary skills and professionally adapt them to the upcoming technologies and procedures (Gobakhloo, 2018, p.928). If an organization trains its employees, it may be adaptable to the new skill requirements of Industry 4.0. (Sony and Naik, 2018, p.14). However, the length of training to upskill is substantial and ranges from 83 days to 105 days (Future of Jobs, p.19, World Economic Forum).

2- How many employees need to be replaced or retrained?

In research delivered by McKinsey (2018), 62% of executives believe that more than a quarter of their workforce needs to be retrained or replaced between 2018 and 2023 to deal with the aging workforce and baby boomers who will retire during this period (born between 1946 to 1964). Moreover, numerous research works also suggest that training is an excellent methodology to skill people on Industry 4.0 rather than replacing them. So to answer the question in the heading: it is better and cheaper to develop your employees rather than to replace them.

Train or Replace?!

Final Thoughts

Training is an excellent methodology to skill people on Industry 4.0 rather than replacing them. So to answer the question in the heading, it is better and cheaper to develop your employees rather than to replace them.

by: Jim van Hulst
Jim van Hulst has worked in several leadership functions at EY, ING Bank, ABN AMRO Bank, and Johnson Controls International. His positions have included Director Talent Management, Global Head Professional Development, and Global Learning Technology Leader. Jim has an MSc. in Learning Technology from the University of Sheffield and a Bachelor of Education from the University of Arnhem/Nijmegen. He also holds a diploma in Business Management and Leadership from the Rotterdam School of Management, and he completed his MBA in 2020 from MSM, The Netherlands. He is a frequently asked speaker and author of numerous articles. Jim founded Jignite recently in 2021.

Join Now

The world’s most powerful and popular train-the-trainer program. Be part of the most empowered HRD community across the globe.
5 2 votes
Article Rating
  • Mailling List

    Mailling List

    Subscribe to receive the latest IBCT News 

    You have Successfully Subscribed!

    Center Certification Steps

    Center Certification Steps

    Type your email below to send you the at-a-glance steps for training centers certification.

    We will send it to you ASAP. Thanks for your interest!

    Share This
    COVID-19
    Updates and Announcements
    The health and safety of our employees, partners, clients, and trainers are of the utmost importance to us.

    We have an internal task force that now meets every week to monitor the situation with COVID-19, and we are in close communication with our partners around the world to resume our TOT training programs once it's safe.
    By continuing without changing your cookie settings, we assume you agree to this. Please read our
    We use cookies to help give you the best experience on our website.
    Ok, I Agree
    We use cookies to help give you the best experience on our website.
    By continuing without changing your cookie settings, we assume you agree to this. Please read our
    Ok, I Agree