What Are the Primary Benefits of Upskilling?

One of the benefits of employee upskilling is that it helps both employers and employees. It’s a win-win in both directions: when employees upskill, companies benefit by having a more skilled, motivated workforce. And when companies upskill employees, those employees benefit from the training and development of their skills that can help them grow in their careers. 

This makes upskilling an easier value proposition all around. Let’s explore the many benefits of upskilling to employers. 

What is the goal of upskilling?

When it comes to upskill training and development, there’s often more than one goal at play. Employers have their own reasons for offering employees opportunities to upskill while employees also have their own goals and reasons for pursuing these opportunities.

The good news is that these goals often have a lot of overlap. For instance, some employees may want to upskill so they can gain the skills needed to move into more advanced positions in the company. For the employer, this may also be the reason they offer upskilling opportunities: to develop employees’ skill sets so they can grow into more advanced (and more difficult to fill) roles in the company.

Similarly, an employer may offer upskilling opportunities to show they’re invested in employees’ development and to improve employee retention. And on the flip side, employees may upskill to show their employer they’re invested in the company and want to grow within it. 

What are the benefits of upskilling?

With technology driving new innovations and evolutions to the world of work, employers are increasingly coming to realize the many benefits of upskilling employees to help retain a motivated and engaged workforce. A more engaged workforce is one of the many benefits of upskilling: 88% of business leaders agree that employees feel more engaged at work when tuition assistance benefits are offered. Offering upskilling opportunities can help not only with engagement, but with retention, too: 86% of business leaders agree that, for organizations in their industry, a strong tuition assistance program can improve employee retention.

Why should you upskill your employees?

There are many reasons you should consider upskilling employees, but one that can’t be ignored is that employees are increasingly coming to expect this from employers: 91% of U.S.-based full-time employees believe employers should invest in employees’ continued education. The expectation that employers should be investing in employees’ continued education has grown 8 percentage points in the last 2 years, up from 83% in 2022 and 87% in 2023.

These numbers make it clear: upskilling benefits are increasingly becoming an important element of a company’s total benefits offering. To continue attracting qualified employees, employers need to stay competitive by prioritizing employee development in their benefits offerings. Otherwise, they risk losing out on top talent to companies that offer more opportunities for ongoing development.

Just like employers, employees are invested in—and concerned about—their own skills development. In fact, the 2024 SEI Consumer Survey found that half of full-time employees in the U.S. are concerned about gaining the skills they need to advance at their current job. Employers can help ease these concerns by carving out opportunities for their employees to learn new things and develop their skills. The benefits of upskilling for employees are manifold, from increased engagement with work to higher job satisfaction. 

Is upskilling worth it?

Launching an upskilling program doesn’t happen overnight, and it requires reflection on the part of the company to determine what skills its employees need and what methods would best help them obtain those skills. So, is taking on that effort worth it?

Without a doubt, yes: upskilling is worth the effort, and the data supports this. The 2024 SEI Consumer Survey found that 93% of U.S.-based full-time employees agree that learning new skills keeps them motivated at work. The same survey also found that supporting continued education or the opportunities to cross-train/explore other areas of interest at work can be a powerful retention tool. The survey found that 49% of U.S.-based full-time employees report feeling motivated to stay with an employer that offers these opportunities.

And that’s to say nothing about the productivity gains that can come with having a more skilled workforce that’s poised to make even greater contributions to the success of the organization.

If you’re interested in building a more motivated and engaged workforce, let’s start a conversation.