Upskilling vs Reskilling Employees: Learn What They Are, the Differences, and the Benefits of Each
A 2018 report from Dell Technologies, the Institute for the Future, and a panel of 20 tech, business, and academic experts from around the world predicted that 85% of the jobs that will exist in 2030 haven't been invented yet.
Already, we have seen some examples of that prediction. Telemedicine, especially in the wake of the pandemic, has exploded. Driverless and electric vehicle manufacturing, information technology specialists, online fitness instructors, and TikTok marketers have become mainstays in a flash.
Preparing for 2030 starts now. And in many organizations, that looks like upskilling and reskilling. While they have subtle differences, both strategies are designed to help employees build new skills to take on new responsibilities and new roles.
While so many of these jobs and so many of the technologies that will shape these jobs don't exist or are in their infancy, what is available now is the time organizations can dedicate to training their workforce for the future with the most cutting-edge tools available today.
In this piece, we'll look at upskilling vs. reskilling, when it might make sense to do one over the other, and examples of programs that exist right now that you could fold into your existing strategies for talent development.
What are upskilling and reskilling?
Upskilling and reskilling are both proactive strategies aimed at helping employees acquire new skills and competencies. Their main difference is the trajectory of the employee.
Upskilling is when an employee learns to expand their existing skillset to further their knowledge, experience, and potential advancement on their current career path.
Reskilling typically entails a slight pivot. It might mean acquiring new skills that are close to their current role, or it could mean that they develop new skills in an entirely different role.
The decision to upskill or reskill depends on the organization's needs and an employee’s career goals. Allowing for both enhances the agility of employees, the resiliency of an organization, and helps to future-proof a business where technologies and jobs are constantly evolving.
Why are upskilling and reskilling important?
Upskilling and reskilling are important because they help address short and long-term challenges and provide benefits for employees and organizations. They also impact significant business outcomes like turnover, engagement, productivity, collaboration, and connection.
The impact of automation and AI on the workplace
One of the clearest reasons for reskilling and upskilling for a future-ready workforce is the explosion of automation and AI tools in the workplace. In an instant, AI has reshaped the way many people communicate and accomplish remedial tasks. It’s helped make employees more efficient and productive, but it also requires employees and organizations to adapt and use these tools effectively.
In the context of upskilling, if an employee is to stay on their current career path, knowing how to use automotive and AI tools can help them perform their job better and more efficiently. In the context of reskilling in the age of AI, it might mean that a role is disappearing, evolving, or even brand new.
Organizations can help employees identify what competencies are transferable and what new skills need to be gained to succeed in these emerging roles.
Benefits of upskilling
Upskilling opens up a host of opportunities for employees. It furthers them on their current career path by building the strengths they’ll need at a more senior level or in a leadership position. And as markets shift and consumer demands change, it’s not enough to just reduce turnover, you will need a motivated and engaged workforce ready to handle those challenges.
Not just a boon to current employees, upskilling opportunities play just as important a role in recruiting. Career growth, learning and development, and challenging and impactful work are the most influential factors for job seekers, especially those early in their careers.
Retains talent by providing opportunities for career growth
By upskilling employees, you’re not only reducing the likelihood of voluntary turnover, but you’re actively implementing solutions with a documented history of improving job and workplace satisfaction. That swing leads to massive financial savings and more cohesive teams and departments.
Improves business outcomes
An upskilled workforce is more dynamic and agile in the face of technological, industrial, and business changes. They’re more engaged, productive, and motivated. When you provide employees with opportunities to improve and expand their skills, you help make your organization more resilient now and in the future.
When it comes to reskilling, organizations gain much of the benefits of upskilling with the added benefit of helping reduce gaps in skills.
Benefits of reskilling
As new jobs are needed to handle the technological innovations and challenges of the future, organizations must be ready to strengthen the existing skills of their current employees and equip them with the new skills they’ll need on a new career path.
For the employee, this is beneficial as well, as they're able to remain relevant and adaptable to future employers and be prepared for significant changes in the job market.
Prepares the workforce for the future of work
The World Economic Forum predicts that by 2025, 50% of employees will need reskilling. And that’s just looking a few years into the future. For any organization that wants to remain competitive in 10 or 20 years, who knows what new core skills will be needed to handle the future state of machine learning and artificial intelligence?
Reduces recruitment costs
With reskilling, you help strengthen and add to the competencies of your current employees which reduces the need (and cost) to recruit and hire. Skills development programs help you fill talent gaps from within to maintain continuity and connection among employees.
Prevents talent shortages
By reskilling and upskilling, you prevent talent shortages by addressing them from within, and when you do need to hire, you make your organization a more attractive place to work for future employees.
How to upskill and reskill
To upskill and reskill your employees, you need a plan. You need to understand the current skillset and knowledge of your existing employees, identify what new skills and knowledge you’ll need in the future, and develop and prioritize an organizational-wide plan to train and empower employees.
Assess the current skills and knowledge of the workforce
The process of reskilling and upskilling starts by understanding the technical skills, what are traditionally thought of as “soft skills,” transferable skills, and job-specific skills and knowledge. Skills-based assessments can include self, peer, and supervisor evaluations as well as an appraisal of past performance.
Identify the skills and knowledge needed for the future of work
In their Future of Jobs report, the World Economic Forum identified the following ten skills as the most important for reskilling and upskilling in the future.
- Analytical thinking and innovation
- Active learning and learning strategies
- Complex problem-solving
- Critical thinking and analysis
- Creativity, originality, and initiative
- Leadership and social influence
- Technology use, monitoring, and control
- Technology design and programming
- Resilience, stress tolerance, and flexibility
- Reasoning, problem-solving
Read More: Skills Taxonomy: The Key to Building a Future-Ready Workforce
Develop a comprehensive training plan
Reskilling and upskilling is a worthwhile challenge, but a challenge nonetheless. A comprehensive training plan can help set goals and deadlines so the efforts stay focused and on track.
At Workhuman® Spotlight, industry and business leaders including Workhuman President Tom Libretto discussed an organization's role in planning for and delivering upskilling training and development.
The organizations that can predictably understand the skills that they're gonna need in the future can start to hone and develop those skills with investments they've already made in their people that exist in the company today. And by doing so, you're not losing institutional knowledge that takes time and energy to develop within an organization at scale. And retaining that knowledge and providing career path in and opportunities, development opportunities for employees is super important. - Tom Libretto, President, Workhuman
Make upskilling and reskilling a priority
Organizationally, upskill and reskill initiatives must be made a priority. Leaders and managers need to work with employees to carve out time for this development, not simply add it on top of the employee’s existing workload. Adding these newly acquired talents to their skills profiles and identifying high-potential employees come as welcome additions.
Use technology to deliver training
Technology is already a major component of any new development strategies so make it a part of the process from the start. Online corporate training can be a cost-effective and convenient option for upskilling and reskilling employees.
Encourage employees to take ownership of their careers
Another critical facet of any upskilling or reskilling initiative is to put power in the hands of your employees. Allow for self-led opportunities, support them through company-subsidized courses and training, and create a working environment that values and motivates employees.
Whenever possible, recognize their effort and growth. Social Recognition® from Workhuman® lets anyone in the organization the accomplishments and growth of others, which leads to increased feelings of connection.
Social Recognition® is another Workhuman® solution that builds your employees up, creating an authentic culture of appreciation and connection.
Make upskilling and reskilling a continuous process
Upskilling and reskilling don't happen in a day, a week, or even a quarter. It’s a constant process in part because the technology shaping our world is constantly changing. No matter the circumstances surrounding the need for upskilling or reskilling, here are a couple of ways to build a culture that allows for this process.
Celebrate employee successes
The process of upskilling or reskilling is a new challenge that requires work on top of the job employees are already doing. Acknowledging that effort and celebrating their initiative is a great way to reinforce the behavior and should thus be a part of your employee development program. Formal programs like Social Recognition® from Workhuman® is an easy-to-use platform that scales appreciation across the organization.
Create a culture of learning
Make learning a habit of the organization. Look for every opportunity to offer employees ways to build new skills and in tandem with a recognition program, instill positivity in the experience.
Workshops, trainings, and courses on a wide swath of skills are available online which makes it possible to help remote employees upskill or reskill with ease. Throughout all of this training though it is important to bear in mind how we approach it. As KimLoan Train, VP of Talent at Allstate, reminds us, intentionality is a necessary ingredient in an organizational approach to avoid whiplash among employees.
With so much emerging technology, particularly AI as I know very much in the spotlight. But how do we leverage emerging technology fully and intentionally that so we're we're chasing the outcomes and not the next shiny new object with technology? - KimLoan Tran, VP of Talent, Allstate
Examples of successful upskilling and reskilling programs
Some of the leading companies around the worldOpens in a new tab are already investing in upskilling and reskilling the workforce.
Walmart
In 2021, Walmart made a $1 billion investment to provide employees with free access to higher education and skills training. They partnered with educational institutions and universities to help deliver the programs and make them tailored to adult working learners.
Verizon
Verizon's upscaling program provides free technical and soft skills training to prepare its workforce for future tech careers with the specific goal of training 500,000 workers for in-demand tech jobs by 2030.
McDonald’s
McDonald's has an education initiative with multiple programs to help further an employee's education and career development. They can improve their English skills, earn a high school degree, pursue a college degree with tuition assistance, or have access to career advising services.
Marriott International
Marriott International's upscaling program helps recent college grads develop into future leaders within the organization, with hands-on and virtual training in things like accounting and finance, culinary, engineering, and event management.
Conclusion
An organization’s success is sutured to the skills and capabilities of its employees. The rapid integration of automation and AI in the workplace accelerates the timeline for training and development in human resource management to address an already widening skills gap with programs aimed at upskilling and reskilling.
Continuous learning and new skill initiatives help employees adapt to new job requirements, assume leadership positions, and help the organization prepare for future challenges. By empowering and valuing employees, an organization helps boost job satisfaction, morale, and engagement; and reduce the likelihood of turnover and the resulting costs.
About the author
Mike Lovett
Mike is a senior content marketing specialist at Workhuman where he writes about the next era of the workplace. Outside the workplace, he’s an avid gardener, a frequent biker, a steadily improving chef, and a fantasy sports fanatic.