Whether you’re a small startup or a corporate giant, the struggle to adapt to the ever-changing landscape is real. So, here’s the million-dollar question: How do you future-proof your workforce in a world where change is the only constant?

The solution is creating an upskilling program — a proactive talent management strategy that confronts the challenges of today and paves the way for a future-ready workforce.

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Roadmap

• What Is Upskilling?
• Upskilling vs. Reskilling
• Importance
• Top Benefits
• How To Create an Upskilling Strategy
• Free Resources for Finding the Right Software
• Next Steps

What Is Upskilling?

Upskilling is the process of advancing employees’ existing skills to the next level through training and development. It’s a human resource function that allows employees to upgrade their technical and functional skills and further develop a career path within their organizations.

Upskilling vs. Reskilling

Skill development takes center stage during discussions on effective talent management. So it’s no surprise that upskilling, reskilling and cross-skilling are recurring topics in HR boardrooms.

Although both methods share the same goal — elevating internal competencies — each method has a different role in achieving that goal. Not knowing when to use upskilling and reskilling is where the confusion often begins.

To create employee skill development plans, you must first understand how upskilling and reskilling differ.

• Upskilling focuses on honing skills for a current role. It involves using educational programs to teach employees how to do their present job better.
• Reskilling focuses on learning new skills for a new role. It involves acquiring new skills needed to climb the ladder.
• Cross-skilling focuses on additional work related to the current role. Ever heard of a jack of all trades? That’s what cross-skilling is all about, allowing employees to perform beyond an existing role with broader abilities.

For example, consider a customer service representative at an IT company named Alex. His daily tasks revolve around handling customer inquiries, providing technical support and ensuring a high level of customer satisfaction.

In the context of upskilling, Alex’s company recognizes the need to improve customer service. Consequently, the HR team implemented a training program on active listening, empathy and conflict resolution techniques.

Outcome: The objective is to refine Alex’s soft skills with the upskilling program, aiming to equip him with the necessary abilities to handle complex customer issues and retain leads.

Now, let’s explore a reskilling scenario. If the company’s strategic direction shifts towards creating more sales roles, the goal becomes improving Alex’s knowledge of sales techniques and product pitching strategies.

Outcome: In this case, the reskilling program’s outcome is leveraging Alex’s existing customer service experience and providing him with new essential negotiation skills to improve company sales.

To sum up, upskilling aims to refine existing skills for the current role, while reskilling adapts skills for a new role based on changes in the company’s strategic direction.

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Importance

The world is constantly changing. The level of uncertainty surrounding the future of work means you’ll need agile, resilient and adaptable people onboard at all times.

Consider the following reasons why elevating skill sets is great for your business in general:

• Businesses require flexibility at every level.
• Job seekers prefer organizations offering growth opportunities.
• Internal mobility affects employee engagement and morale.

Let’s take a deep dive into why these initiatives are the go-to move in today’s work scene:

1. Need for Dynamic Teams

The business world, just like the wilderness, operates under the same law of the survival of the fittest. Businesses need to evolve to sustain in a dynamic landscape, and the catalysts for change are your workforce. You’ll need versatile people who can acquire new skills and conquer new challenges. This flexibility is key across all organizational levels.

2. Job Seekers Expect More

Modern job seekers prioritize employers providing continuous growth and development. According to a recent Gartner report, 65% of workers believe employer-provided upskilling is crucial when evaluating a potential new job. Upskilling programs signal to potential hires that your company is a launchpad for professional journeys. These initiatives reel in new talent and craft a positive workplace, encouraging employees to bring their A-game to the table.

3. Retaining Talent

According to LinkedIn, companies prioritizing high internal mobility tend to retain employees 60% longer. Another LinkedIn study showed that companies providing internal growth opportunities retain employees for an average of five years – twice as long as companies that don’t provide professional development opportunities. When your team sees a clear path for career progression within the company, they’re more likely to stick around for the long haul.

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Primary Benefits

Technological advancements create scope for new job opportunities but also widen skill gaps. By consistently updating skills and capabilities, employees find it easier to adapt to changes, outperform competition and keep up with industry trends.

Here’s how using upskilling keeps your workforce competent, fresh and self-sufficient:

Fill Skill Gaps Internally

Recent data from the U.S. Chamber of Commerce recorded 9.5 million open jobs in the U.S. Even if every unemployed person found a job, there would still be 3 million available jobs. Simply put, there are too many jobs and not enough people to fill them.

With options to upskill, you essentially position your organization to bridge skill gaps internally, making your teams and business more sustainable.

Reduce Recruiting Costs

What’s the actual cost of recruitment? SHRM reports the average price per recruit is $4,700, and the estimate will only escalate the longer a job remains open. Yet, expediting the process increases the chances of hiring the wrong person, and you’ll be back to square one faster than you can say “negative ROI.”

While certain situations leave you with no choice but to hire externally, there’s a compelling reason why 97% of HR and L&D directors prioritize internal talent over hiring for open positions. When you’re clear about the required skill, you must first consider your internal options since you already know the strengths and capabilities of existing employees, helping you save costs associated with sourcing, interviewing, vetting and onboarding new talent.

Boost Productivity

Adaptability, efficiency and agility are the foundation of upskilling programs. Avenues to upskill, learn and equip employees with the skills needed to remain productive in their respective fields. You won’t have to depend on stopgap measures when your employees can handle change and take on new challenges.

Build Internal Trust

A trust fall might be an excellent team-building exercise, but expecting your employees to run the whole nine yards based on nothing but faith is wishful thinking. Your employees need assurance they’ll have a future in the organization and that you care about their well-being.

Opportunities to learn new skills ensure long-term professional growth. Development opportunities also let your employees escape the monotony of doing things the same way for too long.

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How To Create an Upskilling Strategy

At this point, you’re likely wondering how to jump aboard the skill development bandwagon. If you’re ready to start, we’ve got you covered. Below, we’ll walk you through the key steps:

1. Assess Existing Talent

What’s the current level of skills?

Your employees’ needs are the building blocks of your worker development strategy. First, evaluate the existing workforce based on its current capabilities. Use employee surveys to elicit employee experiences based on what the job requires of them, what they do best and what interests them most.

Review existing performance data to pinpoint areas of strength and identify opportunities for improvement. Tap into performance management systems to access data from assessments, performance appraisals and productivity reports.

2. Identify Skill Gaps

Which skills do we need to update job roles?

Now, it’s time to determine where and why your workforce is lagging. Analyzing job roles and industry trends to uncover gaps between current skills and those needed to meet evolving demands. This process ensures a targeted and informed approach to upskilling initiatives, addressing specific competency needs within the workforce.
Start by evaluating critical roles and cascade down through the organization.

3. Determine Goals

Where do you envision your workforce?

You’ll need a blueprint that sets everything in the right direction. Incorporating your company’s mission and overall human capital management goals gives your strategy the direction it needs.

Be as specific as possible when you’re determining your objectives. For example, if your company recognizes the rise of generative AI in the business realm, a strategic focus can be enhancing digital proficiency across teams by incorporating generative AI tools into workflows within the next three months.

This targeted approach aligns with the company’s overarching goals and equips your workforce with the latest skills relevant to emerging trends.

4. Build Talent Pools

Which employees require training?

At this stage, you’re clear on the current state of your workforce and where you want it to be. Identify the people in key roles requiring skill development based on the internal gaps. Compile a detailed employee list, ensuring their information is readily available. This organized approach facilitates effective communication about these initiatives.

5. Assign Learning Paths

What techniques can you use to bridge the skill gap?

Next, review your available resources, identify mentors and create learning paths for everyone. Remember to keep the following considerations in mind:

• Align learning plans with the job-specific requirements.
• Address individual skill gaps identified through assessments or performance evaluations.
• Assign mentors or coaches with the expertise to oversee the process and realign strategies when necessary.
• Designate time for learning activities to create a conducive environment that doesn’t overwhelm their daily responsibilities.

Consider the following options to upskill your employees:

• Coaching and mentoring – Includes assigning managers to help employees develop their skills.
• Online courses – Provides employees with easily trackable learning modules.
• Microlearning programs – Involves breaking down complex subjects into smaller modules and learning through incremental units.
• Job enrichment – Expands the range of skills by adding variety to tasks performed.
• Third-party services – Leverage external expertise and specialized training providers to offer targeted and industry-specific skill development opportunities for niche roles.

HR Tip: Luckily, HR tools like learning management solutions provide a plethora of certifications and courses needed to elevate skills and competencies. Robust talent management systems offer learning management as a core platform feature, so check with your provider about these capabilities when updating your system.

6. Monitor Progress

Regularly track active development paths and closely evaluate progress. Look for any other emerging skill gaps and assign new goals to address them. Focus on creating a system that fosters continuous learning.

7. Adapt To Changes

Lastly, the success of your strategy depends on its ability to adapt to changes. Instead of offering standard career development paths, use an employee’s present level of expertise as a starting point and work from the ground up. Next, you’ll also want to ensure you’re receptive to cues and feedback and foster a willingness to alter programs accordingly.

Free Resources for Finding the Right Software

Pairing your upskilling strategy with the right technology is a solid combo. You’ll need the right system to ensure your learning initiatives are successful. If you’re ready to get started, our free resources will help you throughout the process.

1. Identify your software requirements. If you’re diving into the software game and feeling a bit lost, our free requirements template is here to guide you. It’ll help you pinpoint software features that matter most to your business and set you off on the right track.
2. Shortlist your options. Do you need a hand narrowing down your top contenders? Give our free, customizable vendor comparison matrix a go. Toss in your company’s details, and watch the framework dish out your best choices.
3. Create your framework. If you want to take matters into your own hands and start from scratch, check out our Lean Selection methodology for evaluating software, in which we break down the nine crucial steps for a guided software selection process.

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Next Steps

Here’s our final verdict: your existing workforce is your company’s greatest asset. Let your workforce know you have their back by equipping them with the knowledge and expertise to match! Carefully consider current skill levels to get things going and build a suitable strategy to transform your workforce into a self-sufficient system capable of internally bridging skill gaps.

An all-around talent management system provides you with tools to develop an upskilling strategy. If you’re ready to begin your software search, our free free talent management requirements template is a good place to start.

Did we miss out on any learning and development methods? Let us know in the comments.