Why Upskilling is Still Crucial for Employee and Company Success

Posted by Laura Amendola on January 24, 2025

Continuous learning and upskilling are vital for both employees and employers. When employees upskill, they’re in a better position to transition into new and higher roles and employers are then able to promote from within. Career advancement is an important factor workers today consider when contemplating their future with a company. According to Gartner, “Ultimately, when employees feel supported by their organization to grow their careers, their likelihood of being a high performer increases by up to 39 percentage points, their willingness to stay at the organization increases by up to 19 percentage points, and their engagement increases by up to 61 percentage points.”

Why is upskilling still important?

Upskilling is not only still important, but it may be more important than ever. Since employee retention is often tied to career advancement, having continuous education opportunities readily available for your team members could be the key to your company’s success.

The reasons don’t stop there, however. With technological advancements, you need employees who can adapt to new tools and software. The rise of AI, automation, and digitization reshaping jobs means the skills your employees start out with may not be enough anymore. Upskilling allows you to retain great workers by supplying them with the means to keep up in the ever-changing professional world.

When you upskill your existing employees, you are more prepared to innovate and respond to market changes effectively. This can give your company a competitive advantage in your industry and also helps attract top talent.

How has upskilling changed?

Upskilling may look different now than what you’re historically used to. Some changes to be aware of include:

Shift to Digital Learning
Virtual training courses, self-paced learning platforms, and the increased integration of AI make upskilling your employees easy and reasonably hands-off.
Demand for Soft Skills
There’s an increased emphasis on creativity, emotional intelligence, communication, and leadership skills alongside technical expertise.
Lifelong Learning Mindset
Employees are taking greater ownership of their learning journeys and are often continuously seeking out more professional development opportunities.
Cross-Disciplinary Skillsets
There’s an increase in blending of roles, which means employees need knowledge across multiple fields.
Upskilling During Economic Shifts
Reskilling and upskilling became critical during economic disruptions like the COVID-19 pandemic.

Benefits of upskilling for employees

There are many ways employees benefit from upskilling. They can gain career growth, increased confidence, and the ability to adapt when there are upskilling opportunities readily available. Employees often want to move up or even pivot to new roles within the company, but lack the skills to achieve these goals. This is where upskilling comes in.

When your workers master new skills, they’re more equipped to tackle difficult work challenges, which helps your company meet set outcomes. Upskilling also helps employees stay resilient in the face of job market uncertainties. They can be confident they are either too valuable to lose or qualified enough to not struggle too much finding a new job.

Benefits of upskilling for companies

The benefits of upskilling are clear for employees, but there are plenty of benefits for companies as well. Things like innovation and efficiency can increase when companies offer upskilling opportunities to their employees. Since employee retention increases when career advancement is possible, companies can also save on recruitment and onboarding expenses when implementing new training initiatives.

Offering upskilling opportunities for employees can also help promote a stronger workforce culture that fosters collaboration and continuous improvement. It can also prepare organizations to navigate industry disruptions and embrace opportunities, as well as promote from within.

Strategies for effective upskilling

Both employers and employees can strategize effective upskilling. Some ways employees can do this include:

Identifying industry trends and relevant skills to develop.
Utilizing online platforms, certifications, and workshops.
Seeking mentorship and peer collaboration opportunities.

Companies can do this by:

Conducting skills gap analyses to align training with business needs.
Offering personalized learning opportunities.
Providing incentives and recognition for skill development.
Partnering with training institutions to provide continued education opportunities.
Fostering a culture of learning and knowledge sharing.

Take the next step towards building great upskilling initiatives

The benefits of upskilling are clear for both the employee and the employer. To keep up with industry standards and trends, it’s important to prioritize continuous learning for mutual growth and success. Penn Foster offers training programs and courses that can help build and enhance skills in your workers. Reach out to our training experts to see if our programs can work for your company.