FSSC & PwC UK Report Cost Savings up to $65,804 per Employee through Reskilling in Financial Services

A recent study reveals that reskilling staff can save financial services firms up to $65,804 per employee. Research conducted by the Financial Services Skills Commission (FSSC) and PwC UK indicates that reskilling offers significant cost advantages compared to hiring new employees or making roles redundant.

On average, reskilling a financial services employee costs $40,760, while the cost of redundancy and rehiring stands at $103,690. Over a four-year period, a company with 30,000 employees could save between $96 million and $147 million by upskilling its existing workforce.

The report emphasizes the increasing necessity for reskilling in financial services as the industry undergoes a major shift in required skills, leading to widening skills gaps in the UK and a higher demand for talent.

According to the World Economic Forum (WEF), by 2025, technological advancements and automation will displace 85 million roles globally. This trend has been accelerated by the COVID-19 pandemic, putting 229,000 workers, or 20.8% of the UK financial services workforce, at risk of displacement.

The new report underscores the business case for reskilling and strategic workforce planning. It argues that due to demographic trends, including longer life expectancy and higher retirement ages, as well as the digitization of the economy, the financial services sector cannot rely solely on recruitment to address skills gaps.

Skills development is already a priority for many organizations. In a recent PwC CEO survey, 71% of financial services leaders expressed concern about the availability of key skills, yet only 14% have significantly advanced upskilling programs.

Claire Tunley, Chief Executive of the Financial Services Skills Commission, stated that recruitment alone won’t solve the industry’s skills challenges. She urged firms to prioritize reskilling as a core part of their workforce and planning strategy. Tunley highlighted that reskilling can deliver substantial returns on investment, enhance productivity and competitiveness, reduce operational and reputational risks, and positively impact the broader economy and society.

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