Upskilling and Reskilling: Doing More with Less in 2025

Approximately 33% of global employees said they would stay with a company because of its professional development and training opportunities. Knowing this, companies should take advantage of the employee upskilling and reskilling opportunities in front of them. To do otherwise is inefficient and expensive.

Upskilling can help engage team members, while reskilling can close talent gaps. Both have the potential for measurable business impacts.

In this post, you’ll learn a three-step framework to build a stronger, more adaptable team that can grow alongside your business.

What’s the Difference Between Upskilling and Reskilling?

Upskilling helps employees grow in their current roles by expanding or refining their skills. Reskilling prepares employees for new roles as business needs evolve. Companies use both strategies to train team members and ensure the workforce stays adaptable.

Upskilling and reskilling can take many forms like gaining technical skills in new technologies, completing online courses, or earning certifications. The key difference of both strategies lies in the goal:

• Upskilling keeps employees competitive and engaged in their roles. They learn new skills or deepen existing ones. For example, a healthcare sales rep might take a class on the latest medical regulations to help address concerns when pitching to providers.
• Reskilling helps businesses adapt to evolving needs without losing valuable talent. This is often because current jobs are changing or becoming obsolete due to technological advancements. For example, a call center agent may need retraining as a chatbot manager in a new remote work setup.

These two approaches help employees grow by strengthening existing skills or learning new ones. 

The Importance of Skill Development at Work

The need to continuously develop skills is undeniable. In a LinkedIn study, half of L&D professionals said executives feel employees “do not have the right skills.” But this isn’t down to resistance—research suggests team members are eager to upskill. PwC reports that around 77% are ready to adapt to new ways of working, while 72% are excited to learn and grow in their roles.

Investing in talent development isn’t just about business needs—it’s also key to workforce retention. With 88% of organizations worried about retaining employees, providing learning opportunities has become the top strategy to prevent turnover.

And it works. Team members who feel supported in their growth are likelier to stay because engagement and motivation lead to higher job satisfaction. In fact, around 84% of employees in the above LinkedIn study claimed that learning experiences give their work greater purpose.

Beyond engagement, upskilling and reskilling help companies stay agile. The same LinkedIn study found that every single company with robust career development programs reported measurable business results. A well-trained workforce also delivers a better customer experience (CX) to keep buyers happier and drive more sales.

It’s a smart financial move, too. Hiring and training replacements is expensive, especially in high-turnover industries like contact centers. For example, Gallup estimates that replacing employees can cost organizations:

• 200% of leaders’ salaries
• 80% of technical employees’ salaries
• 40% of frontline workers’ salaries

Hiring externally can cost three to five times more after factoring in financial, time, and resource costs. And that doesn’t include immeasurable morale and knowledge losses. 

The data is clear: upskilling and reskilling are not just about improving employee capabilities. Investing in your team’s growth can deliver tangible business results.

Developing an Upskilling and Reskilling Strategy

To stay competitive, businesses need employees whose skills keep pace with evolving demands. Focusing only on upskilling or reskilling isn’t enough—you need both to ensure adaptability in a changing job market. 

According to the World Economic Forum, 44% of workers must adapt their skills before 2027, and around 60% will require training.

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Companies that only upskill may struggle to adapt when roles and industries change. Those that focus on reskilling could miss opportunities to strengthen existing teams. A balanced learning and development (L&D) approach helps businesses simultaneously retain staff and build a future-ready workforce.

But successfully implementing both upskilling and reskilling requires a deliberate strategy. 

A one-size-fits-all training won’t address individual employee needs and comes with several challenges:

• Time and resources. Manual training programs take effort, and businesses may struggle to prioritize them.
• Employee resistance. Not everyone is eager to learn new skills, especially if they fear change.
• Lack of career paths. Without obvious growth opportunities, employees may not see the value in upskilling or reskilling.
• Measuring impact. Companies need ways to track whether training efforts are paying off.

Thankfully, training assessment tools and clear career pathways can help businesses tackle these challenges head-on. 

3 Steps to Upskill and Reskill Your Team

Upskilling and reskilling an entire team might sound overwhelming, but it doesn’t have to be. With clear steps and the right technology, the process becomes much more manageable.

Use this three-step framework to build a stronger, more adaptable workforce:

1. Assess Existing Employee Skills

Ability is the foundation of success in any role. This includes hard skills (e.g., technical knowledge) and soft skills (e.g., communication, adaptability, or empathy). Before making any plans, human resources (HR) teams need to understand where gaps exist.

Misaligned training can waste resources and frustrate people. Whereas ​​a clear understanding of strengths and weaknesses ensures targeted and effective training.

Let’s say a rep is great at building rapport but struggles with closing sales. In this case:

• A general training program will cover many skills they already excel at
• Managers need to specifically address handling objections better to seal the deal

Start with a skills assessment to measure competencies. These tools use artificial intelligence (AI) to identify employees’ existing strengths and weaknesses. With this knowledge, teams can map out exactly who needs upskilling in which areas. For example, the candidate Neha Verma needs training in the recruiter’s skills dashboard seen below:

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An ideal skill profile is essential for each role. For example, a help desk agent needs to be good at active listening and problem-solving. On the other hand, a sales supervisor requires stronger probing and negotiation abilities.

Compare each employee’s current skill set to these benchmarks. Then, determine where development is needed most. This data-driven approach ensures upskilling that’s focused, measurable, and aligned with business goals.

2. Bridge Skill Gaps With Personalized Upskill Plans

Creating personalized upskill plans helps individuals develop the professional competencies they lack. A generalized approach doesn’t work, as employees have different strengths, learning styles, and career goals.

For example, one contact center agent may need help de-escalating frustrated customers. By mapping individual development paths, training stays effective and aligned with role requirements. These tailored plans allow employees to apply their new skills more efficiently in real-world scenarios.

To bridge skill gaps, offer a mix of training and support options for learners:

• Training programs. Use on-the-job simulations to reinforce learning through speaking and written soft skills assessments. 
• Mentorship. Pair employees with experienced colleagues who can offer guidance and support.
• Coaching. Provide targeted feedback in person or virtually (e.g., Zoom calls or webinars) to help employees refine specific skills.
• Microlearning. Deliver short, flexible training modules that fit into employees’ daily workflows.
• Real-time feedback loops. Track progress in live situations and adjust training approaches as needed.

For example, the agent who struggles with de-escalation could benefit from specific scenario-based training, mentoring from experienced agents, and feedback during live calls to reinforce improvements.

Here’s what one of those training scenarios might look like:

By embedding continuous learning into the workplace, employees can strengthen their skills while staying productive. 

Employees can also be assigned to courses dedicated to developing specific areas of skills like the following sample training modules from HiringBranch:

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But what about those who want to experience new positions? 

3. Support Career Growth Through Reskilling

Reskilling programs allow employees to transition into different roles rather than seeking opportunities elsewhere. Without clear career pathways, employees can feel disengaged and more likely to leave. Others may simply want to try something different from their current field.

Let’s say a customer service agent excels in problem-solving and communication skills. However, they’re bored with the repetitive nature of the role. With additional training, they could transition into sales or account management.

When companies invest in reskilling, employees see multiple futures within the organization. Understanding where they fit in can increase morale and strengthen their connection to the long-term vision.

Here are three ways to support career growth through reskilling:

• Develop clear internal pathways so employees understand how to advance within the company
• Offer job shadowing and rotational programs to expose team members to different roles and responsibilities
• Provide leadership training and experiences to prepare anyone interested in management

By prioritizing career growth, companies can retain top talent, reduce hiring costs, and build a workforce that evolves alongside business needs.

Use AI to Make Upskilling and Reskilling Easier

AI speeds up and scales upskilling and reskilling, especially for high-volume roles like enterprise CX and sales. Instead of relying on manual training, businesses can use training assessment solutions and AI models to pinpoint employee skill gaps in seconds.

Here are three more ways AI makes skills training faster and more efficient:

• Personalized learning automation. AI can tailor learning plans based on individual skill gaps. It can also deliver automated training through microlearning, simulations, or real-time coaching.
• Real-time insights. AI analytics can track employee progress. Then, adjust training recommendations in real time (based on performance metrics).
• Future needs prediction. AI can forecast emerging skill demands so companies proactively train team members before gaps arise.

AI technology also extends into talent acquisition, ensuring a stronger quality of hire from the start. For example, using AI in pre-hiring assessments ensures that recruiters offer new jobs to those with the right skills.

Do More With Less: Upskilling and Reskilling

Upskilling and reskilling initiatives don’t just create more skilled workforces—they future-proof businesses. Companies that invest in employee development will be the ones that adapt, innovate, and retain top talent.

By leveraging AI-driven training solutions, businesses can scale learning efforts efficiently. The result? A workforce prepared for today’s challenges and ready to grow with the company for years to come.

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Image Credits

Feature Image: Via Unsplash/Kenny Eliason

Image 1: Via PwC

Image 2: Via The World Economic Forum

Image 3–5: Property of HiringBranch. Not to be reproduced without permission.

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