Upskilling Programs for Employees

Now more than ever, companies are looking for ways to stay competitive. One of the best ways companies can do that? By supporting their employees to stay current with industry trends and developments. Because of factors like globalization, the rise of automation, and rapid technological change, the world of work is changing—and it’s changing fast.

As a result, the skills needed to succeed in today’s workforce are different than they were even just a few years ago. And that trend shows no signs of slowing down in the coming years; in fact, it’s accelerating. According to the 2023 LinkedIn Workplace Learning report, skill sets for jobs have changed by around 25% since 2015. By 2027, this number is expected to double.

For employers and employees alike, these stats leave little doubt: the key to staying competitive is to keep skills sharp through ongoing development. Employees feel this need acutely. A Workplace Intelligence study from 2022 found that upskilling is a concern for employees. The survey showed that 78% of workers feel they lack the skills, and 71% are worried about their education holding them back from getting ahead. Furthermore, 70% of respondents expressed feeling unprepared for the evolving workplace.

To bridge this gap and better help prepare for the evolving workplace, employers are increasingly turning to employee upskilling programs. In the Fall 2022 Fortune/Deloitte CEO survey, 121 CEOs representing more than 15 industries shared their perspectives and predictions heading into 2023. Nearly all (94%) expect to see talent shortages for certain roles, and more than half (58%) are reskilling/upskilling workers in response.

What are upskilling programs? 

An upskilling program is a program that connects employees with educational or training opportunities to help them grow their skills. Many companies offer upskilling programs to not only to help their employees grow, but also to help the business stay competitive by having teams with the most up-to-date industry skills. 

Upskilling programs are often developed and managed by human resources teams. Human resource management (HRM) is a business function that involves the hiring, supporting, and developing of a company’s workforce to make sure they’re prepared to support the company’s strategic goals. “Upskilling program meaning” in HRM refers to the responsibility that many HR teams have to manage programs that help employees develop their skills in support of the company’s goals. 

Companies can take different approaches to upskilling employees. Some upskilling program examples include leadership development programs, mentorship opportunities, and education benefits for employees to go back to school or to get a credential that supports their development goals. Education benefits in particular can be very attractive for employees because of the doors they can open for the employee’s future growth: 96% of Workforce Edge users surveyed are using their education benefits to improve their opportunities for future promotion, career advancement, or higher salary.

Is upskilling the same as training?

Upskilling is all about skills development, and training also relates to developing skills. You may be wondering: are upskilling and training the same thing?

Though there’s some overlap between them, upskilling and training aren’t exactly the same. Training can be a part of upskilling, but upskilling doesn’t always involve training. 

Upskilling focuses less on teaching employees the processes or procedures needed to do their job today. Rather, it’s more focused on what employees need to do the job they may have tomorrow. Upskilling is all about identifying the skills, competencies, and knowledge employees need to be successful in the changing world of work and then helping them gain those abilities.  

That said, training can sometimes be considered upskilling. For example, if the employee is a new customer support agent, they may take a training course on conflict resolution to learn how to interact with difficult customers. This would not only help the employee do their job better today; it would also help them develop their customer service skills—skills that could help them advance in their role down the line. 

What’s the difference between upskilling and reskilling?

Upskilling and reskilling are often discussed together, and though they both involve developing new skills, they aren’t the same. But what’s the difference between them? 

Upskilling occurs when someone builds on their existing skill set to grow in their current role. There are several possible motivations behind upskilling. Employees may upskill because it improves their future chances of getting a promotion or a higher salary. They may also be looking to fill a personal skills gap or to grow in confidence in their job. 

Reskilling, on the other hand, is when someone learns new skills outside of their existing skill set, typically with the goal of moving into a new career. 

Reskilling may also be initiated by a company. For instance, an electronics manufacturer might decide to close a division that makes headsets that no longer sell well. Instead of letting go of the employees in that division, the company may retrain them to take on different roles elsewhere in the company, maybe even ones that they’ve been struggling to fill. In this example, reskilling can be an effective way for companies to close skills gaps, and it can be cost effective, too. 79% of L&D pros agree: It’s less expensive to reskill a current employee than to hire a new one.

To help illustrate the distinction between the two, here are some upskilling and reskilling examples:

Examples of upskilling: 

• A software developer learning a new programming language to keep up with industry trends
  
• A project manager studying for a project management certification exam to validate their knowledge and skills 
  
• A line cook going to culinary school because they want to become a fine dining chef one day

Examples of reskilling:

• A retail associate signing up for a data analytics bootcamp to become a business analyst
  
• A kindergarten teacher applying to nursing school to become a registered nurse
  
• A fitness instructor training to become a physical therapist

What are examples of upskilling skills? 

Upskilling can happen in just about any role and industry. The skills one person needs to grow may not be the same skills that someone else in the same role needs. Because of this, employees may need help in assessing their existing skills, evaluating growth opportunities, and identifying ways to address their skills gaps. 

Here are some upskilling examples that show how employees may identify and address a skill they need to develop:

• A junior editor, Sam, has strong editorial chops, but avoids conflict and quickly backs down whenever difficult authors disagree with his edits, even when those edits improve the text. Sam’s manager wants him to learn how to be more assertive, so they ask a senior editor to mentor Sam and teach him strategies for defending his editorial decisions. On his own, Sam also reads several books on assertiveness to help develop his conflict resolution and people skills.
• A clothing store associate, Anu, has shown leadership potential at work and wants to one day grow into a regional manager role but feels held back because she has no experience managing people. Knowing she needs to get that experience to move up within the company, she applies for the company’s internal leadership development program, which develops high-potential talent. Toward the end of that program, Anu moves into a team lead role and starts managing a small team of associates while receiving ongoing support and development. 

How do you upskill employees? 

There are a number of approaches employers can take to upskill employees. They may, for example, develop in-house training and development programs, offer education benefits like tuition assistance or reimbursement, or set up mentorship opportunities to connect junior and senior employees—or even some combination of all of these. 

Offering upskilling programs for employees can help employees grow more confident in their skills, feel better prepared for the future of work, and even help with retention. According to a 2022 survey conducted by the Society for Human Resource Management (SHRM) and TalentLMS, 76% of employees say they are more likely to stay with a company that offers continuous training.

What is the best course to upskill?

There’s no one-size-fits-all approach that works for all employers and all employees when it comes to upskilling. The best course for upskilling will depend on several factors, including what skills employers need their workforce to have and the most effective way to help employees gain those skills. Two employees in the same role may not even have the same upskilling needs, making it important for upskilling programs to be personalized to the needs and strengths of the employee. 

What does remain constant, though, is that employees who feel their skills are being developed and put to use are more likely to stay with their current employer. Employees who feel that their skills are not being put to good use in their current job are 10 times more likely to be looking for a new job than those who feel that their skills are being put to good use.

How do you upskill effectively?

To effectively upskill their workforce, employers need to first reflect on the skills their employees have today and the skills they’ll need in the future for the company to reach its strategic goals. After doing this skills inventory and identifying the gaps that need to be filled, employers then need to identify the best ways for employees to acquire those necessary skills. 

This often means connecting employees to educational and training opportunities where they can gain the knowledge and competencies to fill these skills gaps. To keep their workforce up to date, many companies have already been doing this: 78 percent of employers cover opportunities to develop new skills, up from 75 percent in 2021.

How do I start an upskilling program?

Once you’ve identified the skills that your employees need to develop, then it’s time to develop an upskilling strategy and communicate this strategy to employees. This often takes the form of developing an upskilling training program that provides educational opportunities for employees to gain those needed skills. 

Beyond helping employees develop skills, these programs have another upside: they also help employees better understand what skills they need to advance. Seeing a path for advancement can help employees feel motivated; according to the 2024 SEI Consumer Survey, 93% of U.S.-based full-time employees agree that learning new skills keeps them motivated at work.

Starting an upskilling program can be easier than you may think. Many companies choose to partner with providers like Workforce Edge to give employees a wide range of educational offerings and making the process of managing paperwork easier. These providers take the burden of day-to-day management of education benefits off internal HR teams, freeing them up to support employees in other areas. 

“We’re here to take care of some of the heavy lifts,” says Dana Mallory, manager of advising services with Workforce Edge. “We can act as a sort of go-between for employees and their education, so your HR department doesn’t have to. And once employees are enrolled in a program, all the information is there to view within Workforce Edge. We take out all of the guesswork.”

The benefits of upskilling are numerous. When employees are given opportunities to upskill, they may be more likely to stay with their current employer, feel better prepared for the evolving workplace, and have more motivation at work. Upskilling shows your employees that you value their development and want to invest in their future. 

For help in developing or improving an upskilling program of your own, contact Workforce Edge today.