Given ongoing disruptors including technological advancements, economic shifts, and evolving business priorities, adapting skills to the latest market demands is critical to both businesses and employees. In our forthcoming research regarding skills velocity, we find that 32% of the average job’s skills have changed over the past two years.
To address shifting skills and business needs, more organizations are embracing and prioritizing upskilling and reskilling to future-proof their workforces. While the terms upskilling and reskilling are often used interchangeably, it’s important to understand key differences between the two and how each can benefit both your organization and employees.
What is Upskilling and Reskilling?
Upskilling is the process of current employees learning new skills or enhancing existing skills to improve performance in their role or advance in the same industry, focus area, or career path. Effective upskilling enables employees to take a skills-based approach to training and development that aligns with the organization’s strategic goals. Upskilling also helps employees adapt to changing job requirements, technological advancements, or industry trends, which makes them more valuable and productive in their current roles.
Despite the importance and relevance of upskilling, resources related to upskilling are often underutilized. Research from Reputation Leaders and DeVry University found that while 80% of employers say they offer upskilling benefits, only about half of workers use them, leading to a significant missed opportunity for both employees and organizations.
On the other hand, reskilling is when employees learn an entirely different set of skills, often in preparation for a new role unrelated to their current job or industry. Organizations and employees typically turn to reskilling when specific industries or roles face significant disruptions or transformation. In these cases, existing skills or jobs may no longer be relevant and reskilling can help employees learn new, in-demand skills to take on new roles and improve job security.
As technology continues to advance at a rapid pace, reskilling is more important than ever before to business growth and economic advancement. The World Economic Forum projects that 23% of global jobs will change in the next five years due to industry transformation, including through artificial intelligence and other disruptors.
Key Differences Between Reskilling and Upskilling
While both upskilling and reskilling aim to enhance an employees’ skill sets and address skills gaps for organizations, some of the key differences relate to which types of skills employees focus on learning and the desired outcomes of their training and development efforts.
The following chart breaks down how upskilling and reskilling differ from one another.
|
Upskilling |
Reskilling |
|
|
Scope of Skills |
Building upon existing or related skills within the same focus area or industry |
Learning an entirely new set of skills in a different field, specialty, or industry |
|
Career Path |
Employees typically advance, receive promotions, or take on more responsibilities within their current career path |
Employees prepare for a significant career change or transition to a new industry |
|
Time and Effort |
Generally requires less time and effort and involves gradual skill-building over time |
Typically more time-intensive skill-building |
|
Training Methods |
Certifications, mentoring, skills-specific training and assessments |
Comprehensive retraining programs, bootcamps, and degree programs |
|
Organizational Investment |
Lower because programs build on existing skills |
Often higher because of in-depth retraining |
|
Organizational Impact |
Drives retention and addresses skill gaps in existing roles |
Enables companies to more efficiently adapt to shifting business needs and fill skill gaps in emerging focus areas |
|
Example |
A marketing specialist earning a Google Analytics certification to advance into a marketing manager role |
A customer service representative’s role being automated by an AI-powered chatbot and learning coding to transition to a technical role |
The Benefits of Upskilling and Reskilling
A survey of talent development leaders conducted by the Association for Talent Development (ATD) found that 74% of talent development professionals report current skills gaps in their organization and 75% expect skills gaps in the future.
Both upskilling and reskilling offer significant advantages to both organizations and employees. Companies benefit from more skilled, adaptable, and engaged workforces, while employees benefit from improved job security, career advancement, and personal growth.
|
Benefits for Organizations |
Benefits for Employees |
|
Improved workforce agility and adaptability |
Improved career opportunities and job security |
|
Enhanced employee retention, employee engagement, and succession planning |
Career advancement opportunities and higher earning potential |
|
Strengthened employer branding |
Enhanced job satisfaction and engagement |
|
Increased productivity and efficiency |
Personal and professional growth |
|
Ability to adapt to the latest technology |
Ability to adapt to new technology and industry trends |
|
Competitive advantage in target markets |
Expanded skill set and versatility |
Reskilling and Upskilling Success Stories
Many forward-thinking companies prioritize reskilling and upskilling employees to fill skills gaps and help ensure employees skills remain relevant in the future. Below, we’ve highlighted examples of two well-known brands that place an emphasis on a skills-based, always learning work culture.
Progressive Insurance Reskills Non-Tech Staff for IT Roles
In response to declining retention rates and technical skills gaps, in 2021, Progressive Insurance launched an internal IT Programmer Bootcamp. Through the bootcamp, non-technical staff are offered reskilling resources to take on more technical roles, including a 15-week intensive training program, access to a training assistant, and regular check-ins with an IT manager.
Employees who have participated in the program include customer support representatives, underwriting specialists, and claims representatives and the reskilling program prepares them for IT apps programmer associate roles.
The IT Programmer Bootcamp helps Progressive address critical skills gaps while improving engagement and retention by showing a commitment to employees’ career growth. It also enables Progressive to expand its diversity, equity, and inclusion (DEI) efforts by helping employees who may not otherwise have the resources or time to learn technical skills on their own.
Amazon’s Upskilling 2025 Pledge
In 2021, Amazon pledged $1.2 billion to offer 300,000 employees access to education and skills training programs as part of its Upskilling 2025 initiative. This program helps Amazon employees learn critical in-demand skills they need to succeed in higher-paying technical and non-technical roles—-both internally at Amazon and elsewhere. A primary goal of Upskilling 2025 is to create viable career pathways in high-growth focus areas.
Upskilling 2025 includes a variety of opportunities across skill sets and roles. A few examples include:
Amazon Web Services (AWS) Grow Our Own Talent: Amazon employees and entry-level candidates with non-traditional backgrounds receive on-the-job training and job placements within AWS data centers, such as data center technicians and data center engineering operations technicians. Program participants complete in-person training for up to six months.
Machine Learning University (MLU): This program helps Amazon employees with technology and coding backgrounds learn the necessary skills for high-demand machine learning jobs. MLU is divided into six-week modules taught by more than 500 Amazon machine learning scientists and requires only half a day of participation each week the program requires only half to one full day of participation a week. While the program started with a small group of employees, it’s on pace to train thousands of employees in machine learning.
How to Use the Lightcast Open Skills Library to Reskill Your Workforce
Effective upskilling and reskilling requires having a complete understanding of the skills you currently have at your organization, existing skills needs and gaps, and any emerging skills you may need to support your business in the near future.
Lightcast Open Skills is a free, user-friendly library of more than 32,000 skills created by a team of expert economists and labor market analysts. Using data in the Lightcast Open Skills Library, you can conduct a skills assessment of your organization, identify upskilling and reskilling opportunities, and create career pathways, either within the same linear path or by identifying how workers’ existing skills overlap with adjacent industries and occupations.
Integrated skill categories and subcategories can also help you group skills and easily view related skills to develop tailored upskilling, reskilling, and other training programs for your employees. Get free API access to the Lightcast Open Skills Library. If you’re interested in learning more about how Lightcast’s advanced labor market analytics solutions can help you build an agile, skills-based organization, get in touch.
