Upskilling and Reskilling: How to Future‑Proof Your Workforce

The working world has entered an era of great trepidation, but also tremendous opportunity. During the COVID-19 pandemic, employees got a taste of what a truly agile workforce looks like. Remote jobs surged. Teams collaborated across cities and time zones. And employers learned that productivity doesn’t always equate to hours clocked at an office desk.

Fast-forward to today, and that reality has taken an unlikely turn. Artificial intelligence is disrupting the job market at a rate we’ve never seen before. AI-powered startups and think tanks are everywhere, bringing a need for all-new skill sets. At the same time, more predictable or repetitive functions are being automated, leaving many to wonder if their jobs are in jeopardy.

As your workforce navigates these choppy waters, there’s a silver lining: Upskilling and reskilling have never been more important. In this piece, we’ll explore why skill development is so essential for the future of work. Learn why upskilling and reskilling matter, so you can bridge skill gaps at your organization and remain competitive, no matter your industry.

What Are Upskilling and Reskilling?

The arrival of AI doesn’t need to contribute to labor erosion. Forward-looking companies understand that human talent and ingenuity aren’t going anywhere. If anything, there’s plenty of upside for people willing to learn something new—and upskilling and reskilling are the two main catalysts to make that happen. But exactly what do these terms mean?

Upskilling is the process of teaching or learning new skills within an employee’s current role, often to pursue a more advanced or senior role in the future. By expanding one’s existing skills, employees become more specialized in their field, more confident in their abilities, and more valuable to their organization in the long term.

Reskilling, meanwhile, is the process of teaching or learning skills outside of an employee’s existing role. Reskilling typically occurs when an employee wishes to explore alternative career pathing at your organization, or when a restructuring or technological shift necessitates it. 

Upskilling vs. Reskilling: What’s the Difference?

Both upskilling and reskilling involve learning new skills required for future roles and addressing potential skill gaps in an organization. However, upskilling focuses more on depth of knowledge and vertical movement in an organization, whereas reskilling tends to prioritize horizontal movement and a more agile skill set. 

Both are critical vehicles for employee growth—especially if you’re an L&D expert. By understanding where your organization’s current needs lie, and how factors like AI may shift those needs, you can teach and mobilize a workforce that fits those needs like a glove.

The Benefits of Upskilling and Reskilling

Upskilling and reskilling have always played an important role in the employee lifecycle—but now, they’re absolutely critical. In a 2023 Gallup survey, 72% of Fortune 500 CHROs said they expect AI to replace human jobs in their organization within three years. Couple that with another Gallup finding—that only 47% of employees say they have the skills needed to excel in their current job—and the writing on the wall has never been clearer.

Here are three reasons why upskilling and reskilling are crucial.

1. Greater job satisfaction.

If COVID-19 disrupted the job market in the short term, then the ongoing AI movement promises to revolutionize it in the long term. With AI, however, comes an increasingly pressing topic of purpose. What drives me as a human being? What do I yearn to do—both personally and professionally? How does that identity fit into the bigger picture of my life?

Upskilling and reskilling are two ways to help define that sense of purpose, for yourself or others. Countless studies show a correlation between employee development, job satisfaction, and even job performance. It’s not hard to see why. By investing in employees through training and development, you equip your people with the tools to advance more quickly, make desired career moves, and operate with greater clarity and confidence.

2. Higher retention rates.

When your employees are more satisfied in their roles, they tend to stay for longer. While that alone is reason to invest in upskilling and reskilling, the reality is that employee retention is also under siege. 

According to Gartner, generative AI will require 80% of current engineers to upskill. As an L&D leader or talent specialist, you can read between the lines. If today’s employees don’t prepare for the needs of tomorrow, they’re vulnerable compared to the talent that does. 

Thankfully, upskilling and reskilling lend themselves perfectly to this scenario. According to Betterworks, 78% of companies have adjusted their job requirements or hiring standards to account for a skills gap. Organizations cannot simply hire their way through a talent crisis, and those that do are putting themselves at a severe disadvantage. Instead, business leaders must embrace upskilling and reskilling as ways to develop and retain existing talent.

3. Better adaptability.

By closing the skills gap and retaining internal knowledge at your company, you position your workforce to overcome even the most unpredictable challenges. 

Employees who have invested in upskilling will have a deeper understanding of their field. They’ll also have an easier time creating unique or high-impact value for your business. Meanwhile, those who have reskilled will serve as crucial assets to any cross-functional team. Thanks to their institutional knowledge of different roles, they can communicate horizontally with ease. And, if they ever need to assume a new role, they’re well-positioned thanks to their range of abilities.

With both upskilling and reskilling in your employee education toolkit, you ensure you have the breadth and depth of talent to meet any business need.

What Are the Challenges to Upskilling and Reskilling?

Achieving effective talent development is easier said than done. From gaining leadership buy-in to implementing personalized learning paths, the journey can be a long, arduous one.

Here are three of the biggest challenges today’s L&D leaders face.

1. Ineffective or incorrect tools.

Educational experts carry out the majority of an organization’s learning and development efforts. Yet, they’re often expected to do so with a fractional budget. Every dollar counts in the world of L&D—so when a tool misfires, it’s a big deal.

Many L&D teams leverage a learning management system (LMS) to facilitate upskilling or reskilling. Unfortunately, these tools can vary drastically in terms of their feature set. If you’re focused more on the teaching side and less on the tech side (totally understandable), this can create pain rather than a panacea.

Don’t settle for the wrong tools. Look for a platform that allows for effective, personalized growth for anyone at your organization. Dynamic learning paths, gamified learning experiences, social learning, and user-friendly editing tools are all things that set the best LMSs apart from the rest.

2. Lack of leadership support.

Even if you have an ideal education tool in mind, it can be hard to gain sign-off without strong leadership support. For those in the C-suite who may not understand the importance of upskilling and reskilling, it’s imperative to translate business needs into educational needs.

Thankfully, there’s a wealth of employee training statistics you can use to further your cause. From the ROI of education to retention statistics, use these findings as the foundation for your funding.

3. No meaningful way to scale.

Too many L&D leaders fall into the same pitfall of endless training programs that cannot be repeated or scaled. Upskilling and reskilling your employees doesn’t have to take place in a classroom—you can offer the same learning through online eLearning.

By scaling your employee education program, you allow your training to reach more eyes and ears while saving you time and effort. Reinvest that time into the higher-level strategy of your program, and let your tools do the heavy lifting.

Intellum Helps You Build a Culture of Continuous Learning.

Only through strong upskilling and reskilling can organizations overcome the current skills gap and create a workforce that’s set for the future.

Intellum’s all-in-one education platform helps you foster a culture of continuous learning. Use our robust content editor to build courses, certifications, and trainings from scratch, hassle-free. Our platform also supports dynamic learning paths and detailed data tracking, ensuring employees of all skill levels can learn effectively, while you celebrate their wins.

Request a demo, and see how Intellum works firsthand.