Upskilling: Strategies to unlock your employees’ potential

Upskilling is a type of employee training that addresses the growing skills gap, helping HR fill roles in high-demand and emerging fields. 

It works alongside other training programs to support career growth, leadership, and business agility. The latest McKinsey research highlights that automation and AI are reshaping job markets, requiring companies to invest in upskilling.

Without upskilling, businesses risk falling behind as skill requirements evolve. Companies prioritizing employee development gain a competitive edge, ensuring employees remain adaptable and equipped for future challenges.

Embedding upskilling into your learning culture can help your company stay competitive, adapt to change, and empower employees with the skills needed for the future of work.

This article will explore the meaning of upskilling, effective training methods, and key situations in which it has an impact. 

What is upskilling? 

Upskilling refers to learning new skills or acquiring additional qualifications to enhance knowledge and abilities. The term is often used in the context of professional development and career advancement. 

Upskilling can involve acquiring new technical skills, improving existing ones, or gaining knowledge in areas relevant to one’s current or future job. This training method is usually aimed at existing staff. 

Not all training is upskilling. While all staff receive training as part of their work, they undergo upskilling when they expand their capabilities.

Employee onboarding, compliance training, and safety courses provide staff with the essential tools to perform their roles. Upskilling, however, involves training that expands their abilities, such as developing leadership skills in compliance.

Reskilling and upskilling are not identical terms. Reskilling involves learning an entirely new set of skills to transition into a different job role or industry. It involves a more significant shift in the individual’s career path, often forced by job market or industry changes. 

What are the different types of upskilling training? 

There are many ways of delivering upskilling programs across a large company or organization. In this section, we will look at some of the most important methods for upskilling, including: 

• Qualifications and certifications 
• eLearning 
• Experiential learning 
• Networking 
• Informal learning and self-study 

Learning interventions in all these forms can help your staff become more capable in the present and ready for the future. 

Qualifications and certifications 

Qualifications and certifications are pivotal in advancing one’s professional and academic journey. They can range from academic achievements, such as diplomas or master’s degree courses, to professional certifications tailored to enhance specific business skills. 

There are many advantages for learners. A clear certificate validates their expertise and opens avenues for career progression within the same organization or even across departments. The flexibility of these qualifications allows individuals to seamlessly transition to new roles or departments, thereby contributing to their overall career development. While traditional methods of studying for certifications are still prevalent, many participants now rely on eLearning techniques.

eLearning 

Employees with full-time jobs need the flexibility to learn new skills. eLearning’s amazing resources enable staff to upskill between their day-to-day responsibilities. 

eLearning allows customized training content based on individual needs and the company’s business goals. It is a powerful tool for upskilling and enhancing accessibility, engagement, and effectiveness in employee development.

Experiential learning 

Finding the right training for complex company-specific tasks can be challenging. One of the best solutions is to train staff on the job through collaborative training, job rotation, and apprenticeships.

Although this may not seem efficient, as McKinsey pointed out, “learning at the side of an expert is the oldest capability-building approach of all.” Amazing things can happen when you trust all your staff to be trainers. 

Networking 

If employees rely on knowledge they acquired years ago, networking could be one way to engage them in continual cycles of upskilling. Through interactions with peers, mentors, and experts, employees can gain insights into diverse perspectives, acquire new skills, and identify growth opportunities. 

Networking events, conferences, and online communities provide platforms for continuous learning, enabling employees to expand their skill sets, build a robust professional support system, and adapt to a changing professional landscape. 

Informal learning through self-study 

In some professions, the ongoing development of skills and knowledge through self-study is common practice, independent of formal workplace structures. 

Indeed, it’s increasingly convenient for employees to engage in informal learning processes at no additional cost. Podcasts, social media, newsletters, and dedicated reading can give employees useful insights into current issues in their fields. Since this study does not result in a formal certification, managers must discover and recognize this independent learning behavior. 

Upskilling strategies for core business areas   

Upskilling will change from year to year, industry to industry, and business to business. 

However, new technologies, demographic changes, and the forces of history all create common skills gaps. This section will explain how upskilling supports improvement in the following areas: 

• Technology and software adoption 
• Generative AI 
• Conflict resolution 
• Sustainability

While technology adoption has been a perennial concern for many years, Gartner’s analysis identified the other three as key trends in their latest Future of Work report. 

Technology and software adoption 

Software implementation is the process by which staff use new technologies effectively. Given the widespread IT talent shortage, companies must help internal staff understand new digital tools and adapt them to niche departmental purposes.  

Software vendors always boast about the potential software productivity ROI of their products on business operations. However, without the staff to foster and support the implementation stage, your software may be a costly mistake. 

Upskilling in technology adoption means individuals contribute to streamlined operations, improved decision-making processes, and the overall innovation capacity of their organization. This boosts resilience and adaptability in an increasingly digital landscape.

How to implement technology and software adoption 

In introducing upskilling in this area, think about the following steps: 

• Upskilling in this area is especially useful when creating leaders and champions for new software. Your upskilled technological leaders can help set the tone for mandatory organizational training plans through seminars, digital adoption platforms, and guided help. 
• Emphasize the practical applications of training. How can upskilled employees help to improve workflows, fix problems, and make the software run effectively? 
• Methods-wise, informal learning may be one of the greatest assets here. If you’ve got staff excited about new technology, ensure they’re rewarded by formally recognizing their upskilling progress. 

Tips for using technology and software adoption

• ​​Show real-world benefits: Demonstrate how new technology improves efficiency, productivity, and career growth to encourage engagement.
• Provide hands-on training: Offer interactive sessions where employees can practice using the software in real scenarios, reinforcing learning.
• Ensure ongoing support: Give access to tutorials, mentorship, and troubleshooting resources to help employees stay confident and proficient.

Who’s it for? 

Staff members will need training in new software and techniques for organization-wide digital transformation. Upskilling may become the norm, but it is especially useful for people in leadership positions, training managers, and anyone stepping into new technology roles. 

Generative AI  

After the wild fearmongering of 2023, generative AI still hasn’t gone away. Although many people still fear for their jobs, smart professionals recognize that generative AI can enhance individual capabilities. 

AI’s new importance places several crucial challenges on HR, recruitment, and training: 

• Hiring staff with a proven track record in AI is challenging. There is no ecosystem of certifications, and we’ve probably learned to be suspicious of people with “prompt engineering” in their LinkedIn bios! 
• Generative AI’s industry-specific capabilities are still emerging, and there is no consensus on the best use cases. 
• Playing around with unauthorized shadow AI applications can be risky for your company. 

For all these reasons, upskilling your existing staff is a trustworthy method of expanding AI capabilities and handling the challenges of AI change management. 

How to implement upskilling for generative AI 

To embrace the possibilities of AI for the future of work, think about the following steps: 

• Focus your efforts on staff who can already make a difference. Product managers, software developers, and data analysts may already be aware of the possibilities of generative AI in their niche. 
• Although generative AI is the most important aspect of Artificial Intelligence today, don’t forget that many other AI models exist. Their impact on your workflows may be subtler than the ostentatious feats of OpenAI’s chatbots. 
• Although external providers may offer many promising offers, building an internal training and certification program may be the best way to maximize your investments. McKinsey’s internal program for AI champions has illustrated how important this is.  

Tips for using generative AI 

• Personalize learning paths: Use generative AI to create tailored training programs based on individual skill gaps and career goals.
• Enhance practice with simulations: Leverage AI-generated scenarios and role-playing exercises to provide hands-on learning experiences.
• Automate feedback and support: Implement AI-powered tools to offer instant feedback, answer questions, and reinforce key concepts in real time.

Who’s it for? 

Generative AI upskilling is best for professionals in creative fields, customer service, marketing, and data analysis. It helps writers, designers, and analysts enhance productivity, automate tasks, and generate insights, benefiting business leaders seeking AI-driven decision-making and innovation.

Sustainability 

Sustainability is a rapidly evolving field. There is a growing awareness of the need for organizations to embrace sustainable practices. For some companies, this means a complete overhaul of their business model. For others, it means re-tendering vendor relationships for the lowest-impact solutions, with all the rigorous reporting that goes with it. 

Across the board, staff members need better training to navigate the intricacies of sustainable practices, stay updated on evolving standards and regulations, and understand the broader implications of their decisions on the environment and society.

How to upskill employees for sustainability  

• Simulation training is one of the most valuable methods for training leaders for the challenges of sustainability-informed management. After all, making decisions for sustainability means choosing a different set of priorities. Anyone trained in older methods needs to re-learn their most basic skills. 
• There are now plenty of qualifications and certifications in niche aspects of sustainability. Whether it’s product design, marketing, or procurement, you can find a preexisting program that helps your organization meet its needs. 
• Third-party providers are useful allies for companies just starting their journey to net zero. Building capacities in-house is always difficult, especially in a rapidly changing landscape. An outsourced solution will keep its fingers on the pulse.    

Tips for using sustainability 

• Integrate sustainability into training: Incorporate eco-friendly practices into existing learning programs to build awareness and practical skills.
• Use real-world case studies: Teach sustainability concepts through industry examples, showing their impact on business and society.
• Encourage hands-on initiatives: Provide opportunities for employees to apply sustainable practices, such as energy efficiency projects or waste reduction programs.

Who’s it for? 

Sustainability impacts every aspect of business, so many companies will soon incorporate sustainability training into their continuous training programs. More specifically, upskilling could promote a general line manager to become a sustainability leader. 

Conflict resolution 

In the modern workplace, skills in internal conflict resolution have become a valued strength. 

Geopolitical crises, labor strikes, climate change, and socio-political differences cause escalating potential employee discord. With so many things happening worldwide, there’s a major risk of conflicts affecting individual and team performance.

Managers at every level must navigate ideological tensions. To foster a healthy and cohesive workplace, organizations must prioritize conflict resolution training, manager shadowing opportunities, and recognition of effective conflict resolution.

How to upskill employees for conflict resolution 

In the future, employees with excellent conflict resolution skills will be in a strong position to contribute more to their teams. Whether as members, leaders, or collaborators, conflict management is a skill set that hiring managers will prize. 

To enhance the conflict management capabilities in your organization, think about taking the following actions: 

• If your staff has not received formal conflict resolution training, conduct a skills audit to understand their strengths. Some people have natural capabilities for de-escalating conflicts and can set the tone for future internal training interventions. 
• Conduct training on conflict resolution style. This broad-brush step helps participants understand the different approaches they can take to resolving arguments.
• Implement specialist conflict management training that matches your business goals. Many companies will need more help to navigate personal differences. 

Your participants will benefit from various learning methods, including journaling, eLearning, collaborative, and simulation training. 

Tips for using conflict resolution  

• Teach active listening: Train employees to listen without interrupting, acknowledge different viewpoints, and respond thoughtfully to resolve conflicts effectively.
• Use role-playing exercises: Provide realistic conflict scenarios where employees can practice de-escalation techniques and negotiation skills.
• Encourage a problem-solving mindset: Focus on collaborative solutions that address root causes rather than just settling disputes temporarily.

Who’s it for? 

Conflict resolution training can be useful for any staff member. However, when it comes to upskilling, specialist members of the HR department should be first in line for this intervention. 

Upskill your employees today to grow your business tomorrow 

Individuals have more opportunities than ever to upskill in their own time. However, companies should not blindly trust that their employees are quietly building up all the skills they need for tomorrow.

Upskilling is most effective for businesses when it is a strategic practice. It should be implemented proactively to address shortages before they become a problem. 

Organizations must identify the skills their teams will need in the future and offer targeted development opportunities to fill those gaps before they impact performance or growth.

While many companies take this seriously, there are still gaping holes in employee upskilling opportunities. 

According to the World Economic Forum’s Future of Jobs Report 2025, 50% of workers have completed training, reskilling, or upskilling measures, up from 41% in 2023. Half the workforce still lacks the training necessary to adapt to evolving job demands. It highlights the urgent need for more structured and proactive upskilling initiatives.

Sensible HR leaders will ensure their organizations have a good upskilling program to retain talent, develop careers, and enhance business performance.