Why upskilling is key to workforce success

Upskilling is key to staying competitive in today’s workplace landscape. New technologies, shifting customer demands, and changing business priorities mean the skills employees rely on today might not be enough for tomorrow. But here’s the challenge: many employees don’t feel prepared.

Even with companies investing in learning and development, Achievers Workforce Institute (AWI) found that only 20% of employees feel their company’s skills training is actually effective, while 50% of HR leaders think it is. That’s a big gap — a key example that shows why upskilling needs to be more than just a box to check. When employees aren’t learning the right skills, businesses risk falling behind.

A smart upskilling strategy goes beyond just offering training — it starts with understanding which skills matter most, where gaps exist, and how to develop talent in a way that benefits both employees and the business.

With Achievers, you’ll get the strategies and tools to help you pinpoint these skills and close the gaps, setting your workforce up for success.

What is upskilling?

Upskilling is all about helping employees grow their skills in their current roles while also preparing them for future responsibilities. It involves offering talent development programs that not only meet the needs of the company but also match employees’ personal interests and goals.

Employees can pursue upskilling individually, looking for ways to increase their expertise and add more value to their roles. On an organizational level, upskilling is an investment in the workforce, teaching employees the skills they need to navigate the demands of the business while creating a culture focused on growth and improvement.

Why is upskilling important?

It’s clear from AWI’s New Skills Gap report that when employees are given the right tools and knowledge, everyone benefits. Here’s why upskilling matters, both for individuals and organizations:

• Addresses workforce skills gaps: By tackling skill gaps, your team becomes better equipped to handle new challenges, improving productivity and overall performance.
• Promotes a culture of continuous learning: Prioritizing upskilling creates an environment where employees are motivated to grow, adapt, and innovate, fostering a workplace culture of continuous improvement.
• Offers career advancement opportunities: Investing in employee development prepares them for future roles, opening the door for promotions and career growth within the organization.
• Helps build a skilled workforce: A well-trained workforce strengthens the company, ensuring employees are ready to keep up with changing demands and stay competitive.
• Increases employee engagement: When employees see their growth is valued, they feel motivated and more satisfied with their work. Upskilling boosts confidence and helps reduce turnover.

How employers can support upskilling

Upskilling is crucial for maintaining a competitive and motivated workforce. Here are strategies employers can use to support and nurture their employees’ growth:

• Offer flexible learning opportunities: Provide online courses, webinars, and tutorials that allow employees to learn on their own schedule.
• Encourage peer-to-peer learning: Give employees chances to exchange ideas and share experiences with colleagues or through professional networks to help spark fresh insights and ideas.
• Provide hands-on experience: Encourage employees to get hands-on with their learning by taking on projects or cross-functional opportunities that let them apply their new skills in real-world situations.
• Track progress and celebrate milestones: Check in on your employees’ development regularly and celebrate them at evert stage of the process, showing you’re invested in their progress and success.

4 steps to better upskilling at your organization

Upskilling isn’t just essential for employees — it’s also a valuable tool for businesses to stay competitive and successful. Here are four ways to elevate your upskilling efforts and ensure you’re getting the most out the process:

1. Establish a clear upskilling strategy

Start by creating an upskilling strategy that fits with your company’s goals and key skills. Take time to think about which skills are important for success in your industry and where your team’s strengths and weaknesses lie.

Get feedback from stakeholders across the organization to figure out which upskilling methods and resources will work best for your workforce. And be sure to clearly communicate the purpose and importance of upskilling, especially to the leaders and HR professionals who will play a key role in guiding the program.

2. Foster a culture of continuous learning

Upskilling relies on an environment that supports ongoing learning and professional development. Emphasize the importance of upskilling as a shared responsibility among employees, managers, and organizational leaders. Managers should empower employees to set learning goals, explore new opportunities for skill development, and take ownership of their own career growth.

Encourage this autonomy by providing access to the right resources and tools and give employees enough time to pursue upskilling opportunities during working hours.

3. Promote cross-functional collaboration

Upskilling benefits when collaboration is encouraged across different departments and teams within your organization. Take advantage of the diverse expertise and perspectives in your workforce and create opportunities for employees to work together on projects, exchange ideas and best practices, and strengthen connections through team-building activities.

Encourage managers to create cross-functional teams and, when appropriate, consider giving out stretch assignments that allow employees to develop new skills and gain exposure to different areas of the business.

4. Recognize and reward your employees for upskilling

According to The New Skills Gap Report from AWI, approximately one-third of HR leaders are using their recognition platform at some point in the skills tracking and validating process, and those that do are 38% more likely than average to say their company can quickly identify people with the skills they need.

Keep employees excited about your upskilling initiatives by recognizing and rewarding every development milestone, from completing an online course to a professional certification. By providing tangible rewards and meaningful recognition, you can motivate employees to invest in their development and reinforce the importance of upskilling within your organizational culture.

The future of upskilling and AI

Artificial intelligence is changing the way we think about upskilling and the types of skills that are valued at work. Cognitive skills like process automation and data analysis are managed by AI in many organizations, leaving more opportunities for employees to expand their social and emotional skills.

Here’s why these skills matter for the future workforce:

1. Financial literacy: Understanding finances, budgeting, and financial planning isn’t just for accounting departments. Financial literacy helps employees make smarter decisions that align with both personal and company-wide financial goals.
2. Effective communication: AI can help process data, but it can’t replace the nuanced, empathetic conversations that drive success. Employees with strong communication skills can articulate ideas clearly, listen actively, and build relationships that enhance teamwork and trust.
3. Emotional resilience: AI will continue to drive change, and with that comes uncertainty and stress. Emotional resilience equips employees to navigate challenges with a positive mindset.

The role of leadership in upskilling

Upskilling is often synonymous with employee growth but often overlooked when it comes to leadership. According to reality is that when managers invest in their own development, it not only benefits them as individuals but also the organization as a whole.

Here’s how upskilling helps leaders improve in their roles:

• Identifies skills gaps: Through continuous learning, leaders can identify skills gaps in their teams and create necessary changes and training to help them stay competitive.
• Connects generations: Upskilling helps leaders understand the unique strengths and needs of each generation, which can lead to a more collaborative work environment.
• Creates a healthier culture: When leadership sets the example for learning and development, it signals to employees that there are internal mobility opportunities.

Engage your workforce with upskilling today

Upskilling is more than just a strategy for keeping up with industry changes — it’s a key driver of long-term organizational success. Companies that invest in continuous learning see higher employee engagement and a workforce that’s ready to take on new challenges. Whether it’s developing technical skills or strengthening essential soft skills, upskilling helps employees grow in ways that benefit both them and the business.

Achievers helps organizations recognize the value of upskilling at every level, from creating a culture of learning to supporting employee development. As workplace demands change, so do the skills employees need to succeed. Let Achievers help you understand why investing in upskilling is essential for forward-thinking teams.

Learn how upskilling can address today’s skills gaps

Read the report

See why upskilling soft skills is key to workplace success

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