The skills that made your team successful yesterday might not be enough for tomorrow’s challenges. By 2030, 39% of today’s core job skills will no longer exist, partly due to technological advancements brought on by automation and AI, according to the World Economic Forum.
When technology evolves faster than your workforce can adapt, productivity stalls and innovation suffers. Upskilling employees isn’t just a nice-to-have perk—it’s a strategic imperative that directly impacts your bottom line.
Plus, 74% of Millennial and Gen Z employees say they would leave their jobs within a year if they lack skills development opportunities, according to Workplace Intelligence research, revealing just how critical upskilling employees has become in today’s competitive business landscape.
Companies that prioritize upskilling see tangible results: higher retention, increased productivity, and significant cost savings compared to constant recruitment. But creating an effective upskilling strategy requires more than just signing your team up for random courses.
What is upskilling and why does it matter?
Upskilling employees means providing your existing workforce with opportunities to learn new skills that enhance their current role capabilities, helping them adapt to changing workplace demands.
It’s important to note that upskilling builds upon existing competencies; it’s not about teaching entirely new job functions, as is the case with re-skilling (more on this below).
The urgency for upskilling has never been greater. With technological advancements like AI changing the way we work and in turn transforming industries, organisations face significant skill gaps.
Upskilling vs. reskilling: what’s the difference?
While upskilling and reskilling both involve learning, they serve different purposes:
| Upskilling | Reskilling | |
| Definition | Building upon existing skills | Training for entirely different positions |
| Purpose | Career growth within current trajectory | Career shift or adaptation to role changes |
| Example | Marketing manager learning data analytics | Bank teller becoming an IT specialist |
Focusing on new skills for current roles
Upskilling builds upon an employee’s existing knowledge base and current skills, enhancing their ability to perform their current job more effectively. The goal is to expand capabilities and skill sets rather than completely change direction in career path, helping employees stay relevant as their roles evolve.
Preparing employees for different roles
When you reskill employees, you’re training them for entirely new roles when their current roles become obsolete or during significant organisational restructuring. This creates internal mobility paths, allowing you to retain valuable employees even as certain positions are phased out.
Benefits of upskilling employees for organisations
Strategic upskilling initiatives deliver substantial returns on investment for organisations willing to invest in their workforce’s development. Companies that invest in robust upskilling programmes often experience greater profitability and employee retention due to greater job satisfaction compared to those that do not prioritise such initiatives.
Higher retention and engagement
Upskilling programmes demonstrate your commitment to employee growth and employees are much more likely to stay longer with a company that invests in their career development.
This commitment to employee development often leads to higher engagement and improved productivity among those who participate in upskilling opportunities.
Future-proofing against skill gaps
Over two-thirds of executives report moderate-to-extreme skills gaps in their organisations, particularly in digital competencies. Proactive upskilling helps bridge these gaps before they impact business performance.
Organisations that offer upskilling cultivate adaptability among their workforce, leading to faster implementation of new technologies, and sowing a competitive advantage.
Cost savings on recruitment
Upskilling existing employees is substantially more cost-effective than externally hiring new talent. It can lead to reduced hiring costs, which typically cost 1.5-2 times an employee’s annual salary. It can also result in faster productivity, and lower turnover due to higher employee engagement.
How to upskill your workforce effectively
The most successful upskilling initiatives provide resources, leadership commitment, and a culture of continuous learning. Here’s how to implement an effective upskilling strategy:
1. Identify skill gaps and needs
Begin by conducting a comprehensive skills audit to identify both current and anticipated gaps. Use employee surveys, performance reviews, and industry trend analysis to pinpoint priority areas.
This targeted approach ensures your training resources address the most critical needs rather than wasting time on skills your team already possesses.
2. Leverage AI-driven or digital platforms
Learning management systems with AI capabilities can personalise learning experiences and track progress efficiently. These platforms analyse individual learning patterns to recommend relevant content and adjust difficulty levels automatically.
Docebo’s learning platform helps organisations deliver personalised learning experiences at scale, with AI-driven content recommendations that adapt to each learner’s progress and preferences.
3. Offer structured coaching and mentorship
Formal training is most effective when paired with personalised guidance. Establish professional development mentoring programmes that connect experienced staff with those developing new skills.
This human element helps employees contextualise new knowledge and overcome implementation challenges, resulting in higher skill application rates compared to training alone.
4. Encourage self-directed learning
Empower employees to take ownership of their development by providing resources and time for self-directed learning. This approach fosters a culture of continuous improvement and allows employees to pursue development aligned with both personal interests and organisational needs.
Overcoming key challenges in upskilling and reskilling
Even the best-designed upskilling initiatives face obstacles.
1. Limited time and budget
Resource constraints don’t have to derail upskilling efforts:
- Implement microlearning: Create 5-15 minute modules that fit into work schedules
- Establish peer teaching: Develop networks where employees share expertise, reducing external training costs
- Prioritise strategically: Focus on roles with the highest impact on business outcomes
2. Resistance to change
Employee hesitation often stems from fear of failure or unclear benefits. Address this by showcasing success stories within your organisation.
Involve employees in planning upskilling initiatives to increase buy-in and ensure relevance to their daily work. This collaborative approach helps overcome the natural resistance to change.
3. Measuring effectiveness
Establish clear KPIs for upskilling programmes beyond completion rates. Track skill application, performance improvements, and business impact metrics.
Use learning analytics to identify which training approaches yield the best results for different skill areas and employee segments, allowing continuous refinement of your strategy.
Building a culture of continuous learning
A successful upskilling strategy requires an organisational culture that values ongoing development. Research suggests there may be a gap in perceptions of learning encouragement between newer and longer-tenured employees.
Foster leadership support
Leaders must visibly champion upskilling initiatives by participating in learning themselves and recognising achievement. Ensure managers understand how to support skill development through regular coaching conversations and by creating opportunities to apply new abilities.
Celebrate learning milestones
Recognition reinforces the value of learning and motivates continued development. Implement digital badges or certificates for skill acquisition that employees can showcase on internal profiles.
Create opportunities for employees to demonstrate new capabilities through special projects or presentations to reinforce the importance of continuous learning.
Empower your future-ready workforce
Strategic upskilling creates mutual value for employees and organisations alike. By developing capabilities aligned with future business needs, you build resilience while providing employees with career growth opportunities.
Docebo helps organisations implement effective upskilling programmes through features like AI-powered content recommendations, skills mapping capabilities, and robust analytics that measure learning impact.
Ready to transform your workforce through strategic upskilling? Take a tour or schedule a demo today to see how Docebo can support your employee development goals.
FAQs about upskilling employees
How long does it typically take to see results from upskilling initiatives?
The timeline for seeing results from upskilling initiatives can vary, but many organisations notice improvements in employee engagement and skills development over time.
How do you determine which employees to prioritise for upskilling?
Prioritise employees in business-critical roles, those with high potential, and individuals in positions likely to be impacted by technological changes.
What’s the difference between training and upskilling?
On-the-job training typically addresses immediate job requirements, while upskilling strategically develops capabilities for future needs while enhancing current performance.
How can small businesses with limited resources implement upskilling?
Start with targeted programmes focusing on critical skills, leverage free online resources, and implement peer learning initiatives where employees teach each other.
