What is upskilling?
Upskilling is the process of helping employees develop new skills or strengthen existing ones so they can perform better in their current roles. Through workplace learning, training, and ongoing employee development, businesses can improve employee productivity, adapt to changing technologies, and build a more capable, future-ready workforce.
Why is upskilling becoming so important?
The skills employers need are evolving rapidly as AI, automation, and digital technologies transform the workplace. For many businesses, developing existing employees is becoming more practical than constantly hiring new talent.
According to the World Economic Forum's Future of Jobs Report:
- 63% of employers say skills gaps are the biggest barrier to business transformation.
- 85% plan to prioritise workforce upskilling by 2030.
- 39% of workers' core skills are expected to change by 2030.
Benefits of upskilling for employers and employees
Upskilling creates value for both businesses and their people. Employees gain new skills, confidence and clearer career progression, while employers build a stronger, more adaptable workforce.
For employers
- Improve productivity and performance.
- Close skills gaps without relying solely on recruitment.
- Increase employee retention and engagement.
- Adapt more quickly to new technologies and market changes.
For employees
- Expand knowledge and confidence.
- Improve career progression and earning potential.
- Stay relevant as job roles evolve.
- Enjoy greater job satisfaction through continuous workplace learning and employee development.
Common ways businesses upskill employees
There are plenty of ways to support employee upskilling, depending on your business goals and budget. Common approaches include:
- Online courses and professional certifications.
- In-house workshops and technical training.
- Mentoring and coaching programmes.
- Job shadowing and cross-functional projects.
- Industry conferences and networking events.
- Stretch assignments that build new skills through real-world experience.
A mix of formal training and hands-on learning often delivers the best long-term results.
Upskilling vs reskilling
Think of upskilling as helping someone get even better at the job they already do. Reskilling, on the other hand, equips them with the skills needed to move into a completely different role.
| Feature |
Upskilling |
Reskilling |
| Purpose |
Builds on skills employees already have. |
Teaches new skills for a different role. |
| Career focus |
Helps people grow in their current job. |
Helps people transition into a new job or career. |
| Best suited for |
Ideal when roles are evolving with new technology. |
Useful when roles are changing or becoming obsolete. |
| Learning goal |
Focuses on continuous learning and development. |
Focuses on preparing employees for a fresh opportunity. |
Example of upskilling in a business
Scenario
A growing accountancy firm adopts cloud-based accounting software and AI-powered reporting tools. While the team has strong accounting knowledge, many employees haven't used the new technology before.
Solution
The business invests in online training, workshops, and mentoring to help employees build the necessary digital skills.
Outcome
Staff become more confident using the new systems, and as a result, productivity improves and the firm delivers a faster, more efficient service without hiring additional employees.
How to build a successful upskilling programme
A successful upskilling programme starts with understanding the skills your business needs today and in the future. From there, create learning opportunities that are relevant, practical, and easy to access.
A few best practices include:
- Identify current and future skills gaps.
- Set clear learning goals for employees.
- Offer a mix of online, in-person, and on-the-job training.
- Give employees time to learn and practise new skills.
- Review progress regularly and update training as business needs evolve.
Frequently asked questions about upskilling
1. What is the main goal of upskilling?
The main goal of upskilling is to help employees improve existing skills so they can perform better, adapt to change, and continue growing in their current roles.
2. Is upskilling only about technical skills?
No. Upskilling also includes developing soft skills such as communication, leadership, problem-solving, teamwork, and project management alongside technical or digital capabilities.
3. How often should employees be upskilled?
Upskilling should be an ongoing process. Regular training, coaching, and learning opportunities help employees keep pace with changing technology, business needs, and industry trends.
4. Does upskilling improve employee retention?
Yes. Investing in employee development shows people they're valued, creating better engagement, stronger job satisfaction, and improved retention while reducing the need for frequent recruitment.
