Reskilling and Upskilling: A Strategic Response to Changing Skill Demands

In today’s fast-changing world, many jobs and skills are evolving due to new technologies and digital advancements. As the demand for different skills grows, reskilling and upskilling are becoming essential strategies for organizations to stay competitive and help employees grow. By 2025, it’s estimated that around 85 million jobs could be replaced or altered due to changes in how humans and machines divide tasks. At the same time, these technological changes are expected to create 97 million new roles, meaning there will be many new opportunities for those with the right skills.

To keep up with these shifts, businesses and employees need to focus on reskilling and upskilling. Let’s break down what these terms mean and why they’re so important for the future of work.

What Are Reskilling and Upskilling?

Upskilling is about building on existing skills to help employees improve in their current roles. For example, if a marketing specialist learns advanced digital marketing techniques, that’s upskilling. It allows employees to become more skilled and valuable in their current positions, helping them stay relevant as their roles evolve.

Reskilling, on the other hand, involves learning completely new skills to transition into different roles within the organization. This is often necessary when someone’s current job is being phased out or significantly changed by new technologies. For example, if a factory worker learns how to operate a new machine or software system, that’s reskilling. Reskilling provides employees with the abilities they need to take on entirely different positions that align with the organization’s needs.

These approach emphasizes continuous education, enabling employees to progress within their current career trajectory. Employee development via gamification platforms is just one of many strategies companies are using to upskill their workforce. Investing in employees’ careers not only fosters loyalty but also boosts retention rates. According to LinkedIn Learning, 94% of workers would choose to stay longer with companies that actively invest in their career development. Both strategies help companies keep up with the rapid pace of change, filling critical skill gaps and ensuring employees are ready for future challenges.

Why Does it Matter?

The workforce is constantly changing, and nearly every industry is impacted by technology and innovation. Here are some reasons why reskilling and upskilling are essential:

1. Keeping Up with Technological Advances: As technology reshapes many industries, employees need to learn new skills to remain effective in their roles.
2. Improving Job Satisfaction and Retention: Employees who feel they have growth opportunities are more likely to stay with the company. A LinkedIn Learning study found that 94% of employees would stay with a company longer if it invested in their career development.
3. Supporting Career Growth: By offering reskilling and upskilling opportunities, companies help employees reach their full potential and prepare for new roles, either within their current area or in a different part of the organization.
4. Building a Flexible Workforce: With a skilled and adaptable workforce, organizations are better prepared to adjust to market changes, making them more resilient and competitive.

How Career Pathing Supports Reskilling and Upskilling

One of the most effective ways to integrate reskilling and upskilling into a company is through career pathing. Career pathing is the process by which employees create a plan for their career development within the organization. It’s a structured way for employees to see potential career paths, identify the skills needed for each step, and understand how to achieve their career goals.

Career pathing is beneficial because it offers:

• Clear Development Steps: Career paths outline the skills and knowledge required to progress, helping employees understand exactly what they need to work on.
• Personalized Growth Opportunities: Each career path is customized based on the employee’s interests, skills, and the company’s needs. Whether someone wants to move up, make a lateral move, or shift to a different department, a career path can provide direction.
• Support for Internal Mobility: Career pathing encourages employees to look at roles within the company rather than seeking opportunities elsewhere. It fosters a culture where employees feel their growth is valued.

By embracing reskilling, upskilling, and structured career pathing, organizations can proactively address the evolving needs of the workforce, ensuring they remain competitive and agile in an ever-changing business landscape.

The Benefits of Career Pathing for Employee Development

By implementing career pathing, organizations can reap multiple benefits:

• Meeting Future Skills Demand: Identifying skill gaps and developing key skills within the current workforce helps prepare the organization for future needs.
• Uncovering Hidden Talents: Career pathing encourages employees to assess and share their skills, allowing organizations to discover talents that may have been overlooked.
• Creating a Culture of Growth and Mobility: Employees today want to work for companies that support their career growth. Career pathing not only attracts new talent but also boosts motivation and retention by showing employees that the company is invested in their future.

As digital transformation continues, having a clear strategy for career development that includes reskilling and upskilling is essential. It’s a win-win approach that benefits both employees, who gain new skills and career opportunities, and the organization, which becomes more adaptable and competitive.

Want to learn more? Here’s what to look at next:

Watch the webinar: Career Pathing and Talent Mobility: Driving Engagement and Performance 

Read the white paper: Career Pathing as a Talent Imperative