Nitin Gupta, founder of QRCodeChimp. He’s a technology leader with over two decades of technology development and management experience.
One of my early mentors once said: “A company’s most valuable asset is its people. You must invest in them continuously to achieve sustainable business growth. And, the best way to do so is to upskill and reskill them, so they can stay relevant and effective even when there are significant job displacements.”
Once I got into the thick of things, I realized the importance of keeping my workforce and myself on par with the latest tech, trends and skills, especially when technological advancement promises to make many roles obsolete. Instead of hiring new people with in-demand skill sets and letting go of the existing workforce, why not just upskill and reskill them? I believe this is a more humane, convenient and cost-effective approach to tackle disruptions and maintain growth.
The Difference Between Upskilling And Reskilling
Both upskilling and reskilling are essential to address skill gaps and can help employees grow and be more productive. However, they serve different purposes in an organization.
Upskilling means acquiring new skills to address the evolving demands of a current job role. It enhances someone’s competence and helps them grow without switching careers. For example, a sales professional learning AI-driven analytics to improve outreach and conversion is upskilling.
Reskilling, on the other hand, is about learning entirely new skills to switch careers or move into a different role within the company. Think of a support executive learning software development to transition into an IT role.
When deciding between approaches, it’s important to consider your organizational needs. But leaders should also evaluate an employee’s core competencies and career trajectory before enrolling them in a new learning program.
Upskill: Growing In The Current Role
There are many benefits to upskilling. By upskilling, you can:
Improve employee engagement and motivation.
Employees usually look for opportunities elsewhere when they feel stuck in their current roles. Upskilling provides a tangible way for employees to grow and remain loyal. In fact, LinkedIn found that 94% of employees would stay longer at a company if it invested in their learning and development. This also helps the business foster a culture of continuous improvement.
Boost productivity and innovation.
A PwC study found that 77% of respondents would be willing to learn new skills to improve their future employability. Companies that upskill their employees often see increased productivity and continuous learning promotes critical thinking, helps generate new ideas and boosts employee confidence.
Save on hiring costs.
Recruiting and training new employees is expensive and time-consuming. The Society for Human Resource Management (SHRM) estimated that the cost of hiring a new employee was around $4,700 in 2023. In addition to learning the tools and tasks, the new addition must also get acquainted with the people and the company culture, which takes time and delays production. On the other hand, upskilling prepares the existing staff to jump into production without a lengthy onboarding process.
Reskill: Preparing For A New Role
There are also benefits to reskilling. By adding new skills to your collective toolbox, you can:
Fill skill gaps and solve labor shortages.
In 2023, Statista reported that approximately 75% of businesses plan to embrace disruptive technologies like big data, AI and cloud computing by 2027. It’s estimated this will impact around 23% of current jobs, thus transforming the labor market significantly. The report also indicated that this transition will create approximately 69 million new jobs while eliminating around 83 million over the next five years. In other words, there will likely be a severe shortage of skilled professionals across industries. The best way to address this is to start reskilling our workforce in soon-to-be-extinct jobs to take on new roles while the company navigates the transition.
Adapt to market changes.
Uncertain situations force businesses to rethink their operations and evolve quickly. During the Covid-19 pandemic, many local brick-and-mortar shops went online. Naturally, the staff there had to learn various aspects of online business, including website management and transaction processing. Around the same time, several hospitality workers were reskilled into healthcare and logistics to address the demands. Reskilling ensures companies have a workforce ready for whatever comes next.
Build employee loyalty.
Employees feel valued and are more likely to stay longer when companies invest in reskilling them to support their career growth. This instills trust and makes them brand champions, which enhances a business’s corporate image.
Take, for example, AT&T. Back in 2018, the Dallas-based company spent $1 billion on a training program to help employees transition from traditional telecom jobs to software-focused roles. This helped them future-proof their workforce and retain valuable talent, plus kept the company competitive.
How To Implement The Right Strategy For Your Business Needs
If you aim to retain talent, boost engagement and fill leadership roles, I would say upskilling is your answer. If your industry is undergoing major transformation and jobs are at risk, it’s a good idea to reskill your employees to keep them up to date and employed. Both approaches involve similar steps:
Assess skill gaps.
Identify which skills your company would need in the future and train employees accordingly.
Collaborate with employees.
Understand and align individual aspirations with your business goals.
Utilize technology.
Use online platforms, AI-powered learning tools and virtual workshops to provide engaging and flexible training.
Promote a learning culture.
Encourage curiosity. Identify employees who can motivate others to participate—reward employees who score well.
Measure impact.
Track employee performance, retention rates and productivity to refine program schedules.
Upskilling and reskilling are essential components of a business’s growth story. Leveraging both strategically at my company created a culture of adaptability and loyalty that no other perk could achieve. In addition to keeping my business relevant, it also instilled confidence in my workforce.
The next time your business faces a disruptive change, ask yourself: Are we investing in our people’s future? I believe companies that prioritize learning and development are the ones that thrive in the long run.
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