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Keeping Employees Current: Upskilling or Reskilling Your Workforce

upskilling or reskilling
Upskill or Reskill Your Workforce

Keeping Employees Current: Why Upskills and Reskilling is Critical

One of the biggest challenges for today’s employers is keeping their workforce relevant and competitive. This isn’t just about having the latest technology in the office; it’s about ensuring your team has the right skills to stay ahead in the game and being smart about avoiding the skills gap. Enter the two key strategies for employee development: upskilling and reskilling. But what’s the difference, and how do you know which approach is best for your team?

 

Upskilling vs. Reskilling: What’s the Difference?

Think of Upskilling as leveling up in a game you’re already playing. Employees are taught new skills that are closely related to their current roles, making them more efficient, innovative, and capable within the existing framework. For example, a marketer learning to analyze data using advanced tools is upskilling; they’re building on their current expertise to become even more valuable in their field.

Reskilling, on the other hand, is more like switching games altogether. It involves training employees in completely new skills, often in preparation for an entirely different role within the company. Imagine a customer service representative learning how to code and then transitioning into a software development role. That’s reskilling—a total career pivot, often necessary when certain job functions become obsolete or when a company shifts focus to new areas of growth.

Both strategies aim to keep employees relevant, but the choice between the two depends on various factors like company needs, individual career goals, and the overall business landscape.

 

Generational Differences: Does One Group Need Upskilling More Than Another?

When it comes to upskilling and reskilling, generational differences do play a role. Baby boomers and Gen X employees, for instance, are more likely to need reskilling as industries evolve and automation or AI replaces many traditional job functions. For example, workers who began their careers before the digital revolution may need to pivot into tech-savvy roles to stay competitive.  According to CIO.com employees who see AI as their greatest skill deficiency are confident they can learn the technology if only their organizations gave them adequate upskilling support.

Millennials and Gen Z, on the other hand, are more likely to benefit from upskilling, especially in fields like tech, marketing, and analytics. They’ve grown up in the digital age and are accustomed to constant learning, so expanding their existing skill set—whether it’s mastering the latest software or learning advanced coding—makes sense. However, it’s essential to note that while generational tendencies are real, they aren’t hard and fast rules. Employees across all age groups can benefit from both upskilling and reskilling. What matters most is identifying which strategy best aligns with your business goals and individual career paths.

upskilling or reskilling
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Job Functions Ripe for Upskilling and Reskilling to Avoid the Skills Gap

Now that we’ve covered the generational aspect, let’s talk job functions. Some roles are particularly well-suited for upskilling, while others might require more of a reskilling approach.

  1. IT and Tech Roles
  • Upskilling: IT professionals need to stay updated on new programming languages, cybersecurity threats, and software tools. A data analyst, for example, might upskill by learning the latest in AI-driven analytics, making them even more essential to the team.
    Note: 92% of IT jobs are expected to be transformed by AI, rendering 74% of IT pros fearful that AI will make their skills obsolete.
  • Reskilling: On the flip side, non-technical roles in industries being heavily disrupted by tech—like retail or customer service—might require employees to reskill in tech-related fields. For instance, a retail manager could transition to a role in e-commerce management, where they’ll need a completely new set of digital skills.
  1. Marketing and Sales
  • Upskilling: Digital marketing evolves at lightning speed. Marketers who upskill by learning new SEO techniques, social media strategies, or data analytics will continue to thrive in this competitive space.
  • Reskilling: With the rise of AI and automation, traditional sales roles might need reskilling. Sales professionals could pivot into customer success roles, where they leverage their people skills in more technical or software-driven environments.
  1. Manufacturing and Logistics
  • Upskilling: In manufacturing, automation is transforming workflows. Workers can upskill by learning to operate and maintain new machinery or by understanding how to optimize production through data-driven decision-making.
  • Reskilling: As factories increasingly turn to robotics, many line workers may need to reskill into tech roles, like machine programming or robotics maintenance.


Are Employees Resistant to Upskilling and Reskilling?

upskilling or reskilling
Upskill or Reskill Your Workforce

Resistance to change is a natural human tendency, and that extends to upskilling and reskilling. Employees may be hesitant to learn new skills for several reasons: fear of failure, concerns about workload, or simply a lack of interest in moving outside their comfort zone. However, with the right approach, this resistance can be minimized and many are happy to be abele advance or stabilize their careers through skill development.

To combat reluctance, employers can make learning opportunities appealing by aligning them with personal career goals, offering incentives like promotions or raises, and creating a supportive learning environment. Companies large and small are exploring educational programs with a focus on career advancement, demonstrating that upskilling and reskilling are investments in both the employee’s and the company’s future

 

Examples of Upskilling and Reskilling in Action

Let’s look at some real-world examples.

  • Upskilling Example: Amazon has made headlines with its investment in upskilling programs via its Amazon Upskill Pledge for 2025, which trains employees in cloud computing and software engineering. This allows existing employees in non-tech roles to transition into higher-paying technical positions within the company, all without leaving Amazon.
  • Reskilling Example: AT&T embarked on a massive reskilling initiative called Future Ready, aimed at retraining employees whose jobs were at risk due to technological advancements. They partnered with online education platforms to teach new skills like data science, allowing employees to shift into new, more in-demand roles within the company.

In both cases, the companies aren’t just keeping employees relevant—they’re boosting morale, increasing job satisfaction, closing the skills gap and ultimately, improving retention.

 

How Staffing Partners Like Lloyd Can Help with Upskilling and Reskill

Navigating the world of employee training can be overwhelming, especially when you’re trying to balance the demands of running a business. That’s where staffing partners come in. Specialized staffing agencies don’t just place candidates—they also provide training solutions to help upskill or reskill your workforce.

For example, a staffing partner might help identify which roles in your company are prime for upskilling or reskilling, connect you with the right training programs, or even offer in-house development opportunities. Some agencies specialize in industries like IT, healthcare, or manufacturing, providing targeted training programs that align with the specific needs of your business.

In this way, staffing partners act as an extension of your HR department, helping you stay ahead of industry trends and ensuring your workforce has the skills needed for long-term success.

 

Will Upskilling and Reskilling Help with Employee Retention and Engagement?

Absolutely. When employees feel that their employer is invested in their growth and career development, they’re more likely to stay loyal. Upskilling and reskilling initiatives can also improve job satisfaction, as employees feel more confident and capable in their roles.

In a world where talent is increasingly scarce, offering development opportunities can set your company apart from competitors. Rather than losing employees to other companies that offer more exciting career paths, you can create those opportunities in-house through a strong focus on learning and development.

In short, by keeping your employees current through upskilling and reskilling, you’re not just future-proofing your business—you’re creating a workforce that’s more engaged, adaptable, and ready to tackle whatever comes next.

Of course, some companies believe it’s easier or less costly to hire new talent rather than to reskill existing employees. However, this short-term view can actually lead to greater expenses and inefficiencies in the long run.

Training and Development
Upskilling or Reskilling

This quote is most often attributed originally to Derek Bok, who was the President of Harvard University from 1971 to 1991

 

5 Reasons Reskilling/Upskilling is a Smart Strategy

  1. Cost-Effective in the Long Term: While hiring new talent may seem quicker, it often involves significant costs in recruitment, onboarding, and training. Reskilling your existing team helps you avoid these expenses while maintaining productivity.
  2. Faster Skill Gaps Solution: New hires require time to integrate into your company’s culture and processes. By reskilling current employees, you can fill critical skill gaps faster since they already understand your business.
  3. Boosts Employee Loyalty and Retention: Employees who see growth opportunities are more likely to stay. Constantly replacing staff due to high turnover costs more than investing in the development of the team you already have.
  4. Adaptability to Market Shifts: Upskilling and reskilling help your workforce adapt to changing market conditions, allowing you to be more agile. New hires may not bring the same level of loyalty or flexibility.
  5. Mitigates Risks from Talent Shortages: Talent shortages are a growing concern. Building skills within your existing workforce insulates your company from relying on a tight external talent pool, ensuring you’re prepared for future demands.Investing in your current employees through reskilling not only strengthens loyalty and retention but also shields your organization from future uncertainty and fluctuating hiring costs.


Final Thoughts on Upskilling and Reskilling

As technology advances and industries evolve, companies that don’t prioritize continuous learning will find themselves left behind. By understanding the difference between upskilling and reskilling, identifying the right approach for your workforce, and leveraging staffing partners to help execute these strategies, you’ll not only keep your employees current—you’ll create a culture of growth that boosts retention, innovation, and long-term success.

 

What Lloyd is Seeing in the Marketplace
We asked Jason Banks, CSP, Principal of Lloyd Staffing about the importance of upskilling and reskilling in today’s marketplace.

 Listen to Jason tell you why reskilling or upskilling isn’t just a strategy, but a necessity.
CLICK TO VIEW

upskilling or reskilling
Upskilling or Reskilling

 

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Let Lloyd help you recruit and build a qualified workforce using concepts like reskilling and upskilling.Complete our Request Talent query to launch your search and we will have one of our Lloyd recruitment professionals reach out to you.

Ready for a change of jobs?   Let Lloyd help you find a role and organization that will value your skills and talent and help you continue to learn and grow.
Visit Lloyd’s Job Board to apply for one of our current searches
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Written by Nancy Schuman, CSP,  the former Chief Commuications Officer for LLoyd Staffing.
A recruitment and career specialist, Nancy has more than 40 years in the staffing industry  – 27 of them with LLoyd.  Now semi-retired, she remains an advocate for career education; she has advised thousands of candidates on their resumes and job searches while also serving as the Careers columnist for a large weekly Long Island newspaper. Nancy has written 11 popular books for job seekers and business professionals.  You can find her Author’s page and books on Amazon.  She continues to blog for Lloyd and coach job seekers at all levels, offering advice for today’s competitive workplace.

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