What is upskilling and reskilling? Definition and benefits

Being competitive requires people who are always learning and adapting. This is when upskilling and reskilling come in to help organizations develop their talent and extract the most out of them to fulfill their business objectives.

However, upskilling and reskilling also have several benefits in terms of talent management and critical HR KPIs. A solid talent development strategy allows you to improve employee retention, bridge skill gaps, and future-proof your workforce in a demanding world of work. 

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What is upskilling and reskilling, and what are the advantages of investing in a skill development plan? 

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Understanding the difference: Upskilling vs. Reskilling

What is upskilling?

Upskilling involves expanding an employee's existing skill set to enhance their performance in their current role and potentially advance in their career. 

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For example, a software developer may upskill by learning a new programming language, making them more competent and adaptable in their work. 

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This strategy improves job performance and satisfaction by aligning new skills with existing job functions. It allows employees to see the immediate value and relevance of their training, increasing their motivation and engagement. 

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When training is directly applicable to their daily responsibilities, employees are more likely to appreciate and utilize the new knowledge, resulting in improved job performance.

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What is reskilling?

Reskilling involves learning new skills that are outside of an employee’s current expertise, often to transition into a different role. This is crucial when job functions become obsolete due to technological advancements or other changes. 

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For example, an assembly line worker might be retrained to run and maintain automated machines, moving from a manual to a more technical function. This transition not only preserves the employee’s job but also enhances their skill set and employability in the long run.

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This strategy helps retain valuable employees by shifting them into roles where their skills can be leveraged.

Why upskill and reskill?

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Adaptability

Upskilling and reskilling enable workers to adopt new technologies and processes, ensuring the workforce's agility and readiness to tackle future problems. This flexibility not only helps you remain competitive but also enables you to capitalize on new possibilities as they happen.

The agility and flexibility obtained by upskilling and reskilling the workforce are precious assets in a fiercely competitive job market. As new technologies and processes emerge, organizations that have invested in developing their workforce can quickly adapt and implement these advancements. 

The readiness allows them to stay ahead of competitors who may struggle to keep up with rapid changes, as a skilled and adaptable workforce can identify and seize new opportunities as they arise, driving innovation and growth.

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Talent retention and cost efficiency

One of the most important advantages of upskilling and reskilling is increased talent retention. 

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When employees believe their employer is invested in their personal and professional development, they are more likely to stay with the company and avoid the high costs of recruiting and onboarding new staff. 

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This sense of investment breeds loyalty and reduces turnover, which is especially important in industries with skill shortages and high competition for talent.

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Upskilling and reskilling are cost-effective investments for businesses looking to improve performance. Recruiting new staff is a resource-heavy process of advertising jobs, interviewing and training new starters. There is also a lag in productivity as new staff get up to speed in their role and the company culture. 

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By developing existing staff, businesses can leverage their existing knowledge and experience and get new roles or responsibilities up and running quicker and smoother.

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Future-proofing

According to the World Economic Forum, 23% of global jobs will change due to industry transformation in the next five years. Companies need to upskill and reskill to stay relevant in this changing world of work. 

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This way, organizations can reduce the risks associated with technology improvements and market transitions by reskilling employees for high-demand professions, which keeps their workforce competent, lowers the risk of skill shortages, and increases company resilience.

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Key ingredients of effective upskilling and reskilling

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Skills mapping

Skills mapping involves identifying and documenting employees’ skills to understand current capabilities and address skill gaps. It helps align workforce talents with strategic goals and development needs. 

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AI-powered platforms like Adepti streamline this process by providing real-time insights into workforce capabilities, helping to optimize employee development and performance. 

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Continuous-learning culture

Promoting lifelong learning and incentivizing personal development creates an environment where employees are encouraged to continuously enhance their skills. This ensures that your employees remain engaged and proactive in their professional growth.

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Partnerships

Developing partnerships with other organizations, educational institutions, or third-party training providers can create additional opportunities for employees to gain new skills or certifications. 

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This can also provide structured learning pathways and apprenticeships. 

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Leadership buy-in

Communicating the importance and benefits of upskilling and reskilling programs to leadership teams and ensuring their buy-in is crucial for driving awareness and participation. 

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Clear communication helps align these programs with the overall business strategy and ensures that all stakeholders are on the same page. 

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These strategies help you create a robust framework for upskilling and reskilling that not only enhances individual employee capabilities but also drives overall business growth and adaptability​​​​.

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Implement upskilling and reskilling with Adepti

Investing in upskilling and reskilling not only closes skill gaps but also boosts employee morale and performance. Adepti helps you effectively manage and enhance your workforce’s capabilities, driving both individual and organizational growth. Book a free demo to ensure your workforce is equipped for the future.