What Is Upskilling? 5 Ways Upskilling Drives Business Outcomes

Employers believe that 44% of workers' skills will be disrupted in the next five years — meaning roughly 60% of the workforce will require training before the decade's end, according to the World Economic Forum's Future of Jobs Report.

Disruptive technology, societal shifts, an aging workforce, and the proliferation of hybrid work have forced business leaders to upskill their workforce to remain competitive and resilient.

In this way, upskilling has become a transformative strategy for employers that must adapt to changing market demands and stay ahead of their competition. But what exactly is upskilling? And why is it such a crucial concept to driving business outcomes in today's workplace?

Let's dive in…

Simply, upskilling refers to the process of enhancing existing skills to meet current and future job requirements. Upskilling aims to broaden employees' capabilities and prepare them for higher-level responsibilities or emerging roles within the organization.

And there is a difference between upskilling and reskilling. While there is some overlap between the two terms, upskilling helps team members grow in their current role, whereas reskilling prepares them for something almost entirely new. Often, reskilling happens when skills or jobs are on their way out, but organizations choose to reskill their workforce for a different career path.

A great example is Skillsoft's partnership with Lexmark, which has long been a printing services company. The company has transitioned from being focused on printing to being focused on digital-first services and IoT solutions.

In the true sense, they had undergone a digital transformation. To pull it off, they focused on reskilling employees through live instruction, coaching, and leadership tracks that could help redefine the culture and build a brand new skill set for motivated employees.

Read more about Lexmark's story here.

Upskilling creates a decisive strategic advantage for organizations that find a way to normalize it in their operations. In fact, the World Economic Forum predicts that investing in upskilling will increase global GDP by $6.5 trillion by 2030. Let's break down some of the benefits of upskilling for both organizations and individuals alike…

The benefits of upskilling for individuals:

• Offers pathways to career advancement
• Increases job security
• Boosts earning potential

Individuals who invest in upskilling are also more likely to stay up to date with industry trends, make better recommendations, and offer keener insights. Finally, as shown in our recent IT Skills and Salary Report, individuals who invest in training and certifications are more likely to see higher quality of work and therefore receive higher salaries.

From an organizational standpoint, investing in upskilling programs can lead to a more skilled and productive workforce.

The benefits of upskilling for organizations:

• Fosters a positive work environment
• Reduces turnover rates
• Drives better business outcomes

Let's go into more detail about how upskilling can drive better business outcomes…

Staying ahead isn't just about having the latest technology or the best product, and it's about empowering your workforce with the right skills. This is where upskilling comes into play, offering a strategic pathway for businesses to drive business outcomes by:

1. Closing Skills Gaps

One of the most pressing challenges faced by businesses today is the widening gap between the skills required for emerging roles and those possessed by the current workforce. Whether it's training in digital literacy, data analytics, or specialized technical skills, upskilling ensures that employees stay relevant and capable of meeting the demands of their roles.

Johnson & Johnson is just one of many examples of organizations devising experiential programs to upskill employees. The program at Johnson & Johnson gives agency to employees to take on projects outside of their remit, like a skills marketplace. Doing so gives employees room to develop new skills and begin applying them in different parts of the business.

2. Adapting to Technological Advancements

Technological change always seems to outpace the skills of the current workforce. Upskilling initiatives bridge these gaps by providing employees an ongoing solution to build and maintain their skill set.

For Mercy Health System — which encompasses several large hospital and clinics in four states — staying on top of ever-changing technology is a huge priority. Mercy organized its learning content into easily digestible learning journeys comprised of certification tracks, bootcamps, and more. Within these journeys, learners start with a Skill Benchmark that measures their current knowledge and serves up personalized content recommendations based on their answers to questions.

Taking these steps helps Mercy stay current with emerging technology and practices. Read about their learning outcomes.   

3. Improving Collaboration

Effective collaboration is essential for driving innovation and business outcomes. Upskilling plays a crucial role in fostering a collaborative culture within organizations. By providing employees with training in "soft skills," such as communication, teamwork, and leadership, businesses can cultivate stronger partnerships across teams and departments.

Black Knight has had a culture of learning and developed Black Knight University (BKU), a proprietary program built around course topics related to the industry and its proprietary products. Designed with interactive gamification concepts and incentives for participation, BKU makes it easy for employees to share learning and knowledge across departments, boost engagement, and reward curiosity — ultimately improving collaboration within the organization.

4. Transforming the Customer Experience

In a customer-centric economy, delivering exceptional experiences is key to building loyalty and driving revenue growth. Upskilling empowers employees to deliver personalized and proactive customer interactions. Training in customer service excellence, empathy, and relationship management equips frontline staff with the skills to anticipate customer needs and exceed expectations.

This is why Delta Dental created a customized learning and development process that provided their contact center agents with training in customer service and power skills. This gave them the tools to provide top-notch service and drive business outcomes by proactively tackling customer problems and asking thoughtful questions that extend the care and quality of service.

5. Promoting a Culture of Learning

Upskilling promotes a culture of continuous learning within organizations. By encouraging employees to acquire new skills and knowledge throughout their careers, businesses cultivate a workforce that is agile, resilient, and prepared for future challenges. This commitment to lifelong learning not only benefits individual career progression but also strengthens the overall capability and competitiveness of the organization.

St. Luke's Health System, Idaho's largest employer, was on the cusp of an organizational transformation in early 2020, but then the COVID-19 pandemic hit and demand for healthcare services skyrocketed. By 2022, St. Luke's had extended learning opportunities to every employee in the organization, including diversity, equity, and inclusion (DEI) training, project management, leadership development, and more.

Upskilling isn't just about keeping pace with technological advancements. It's about empowering employees to drive tangible business outcomes. By closing skill gaps, improving collaboration, transforming the customer experience, and promoting a culture of learning, upskilling enables businesses to innovate, adapt, and thrive in a rapidly changing environment.

That's why at Skillsoft, we have curated a library of learning journeys to offer organizations a path for upskilling their workforce through a blend of self-paced, on-demand courses, hands-on labs, live instruction, coaching, and an expansive digital books library. We align these learning journeys to in-demand skills based on our analysis of millions of learners and insights from partners like Burning Glass Technologies.

See how Skillsoft can help you kickstart your upskilling journey by getting a demo today.