Why Upskilling & Reskilling are Critical for Business Success

As we approach 2025, companies are increasingly facing the need to stay agile and competitive. A critical way to achieve this is through focusing on upskilling and reskilling employees. According to the World Economic Forum, over 50% of all employees will need significant reskilling by 2025 due to shifts in technology and business models. Companies that embrace this trend not only prepare their workforce for future challenges but also position themselves for sustained growth.

Why Focus on Upskilling & Reskilling?

The global talent shortage is a growing concern across all industries and organizational levels.

A predicted shortage of 85 million workers by 2030, which could result in $8.5 trillion in unrealized revenue.

 

This gap makes it clear that businesses must look within to build talent pipelines, creating skilled workers from their existing workforce. Here are some key benefits of investing in these areas:

1. Increased Productivity

Employees who receive continuous training are more efficient in their roles. Studies by the American Society for Training and Development show that companies with comprehensive training programs have 218% higher income per employee compared to those without. Upskilling ensures employees stay abreast of new technologies and methodologies, making them more effective in their current roles.

2. Retention and Reduced Turnover

A LinkedIn Workplace Learning Report found that 94% of employees would stay longer at a company if it invested in their learning and development.

Reskilling and upskilling help reduce turnover, which costs businesses approximately 33% of an employee’s salary to replace them.

 

By offering growth opportunities, companies can create loyalty and improve employee retention.

3. Future-Proofing the Business

The pace of technological change means that new roles are emerging, and existing roles are becoming obsolete. According to a PwC survey, 74% of CEOs are concerned about the availability of key skills in the future. A proactive approach to reskilling helps businesses bridge this gap by training employees for new roles that are aligned with industry trends, avoiding the pitfalls of skill obsolescence.

Strategies for Implementing Upskilling & Reskilling Programs

1. Personalized Learning Paths: Tailoring learning plans to individual employees ensures that they receive relevant training, increasing engagement and effectiveness.
2. Leverage Digital Learning Tools: Use e-learning platforms, webinars, and virtual workshops to provide flexible learning opportunities. According to IBM, companies that use e-learning tools can increase productivity by up to 50%.
3. Partnerships with Educational Institutions: Collaborating with universities or industry-specific learning platforms provides employees with high-quality training, often with certifications that can further their careers.
4. Mentorship and Coaching Programs: Pairing experienced employees with those seeking to upskill or reskill creates a dynamic learning environment that enhances internal knowledge sharing and development.

The Business Impact

Upskilling and reskilling are not just HR initiatives—they directly impact the bottom line.

A Deloitte study reveals that organizations investing in employee learning and development programs experience 24% higher profit margins.

 

Additionally, companies with highly engaged workforces, which are often the result of good learning and development practices, outperform their peers by 147% in earnings per share. By investing in upskilling and reskilling, organizations are building a workforce capable of meeting future challenges, driving innovation, and ensuring long-term business success.

Conclusion

In a world where change is the only constant, businesses must take action now to invest in their employees’ growth. Whether through upskilling to keep pace with current demands or reskilling to prepare for future roles, this focus can lead to greater productivity, lower turnover, and a future-proof organization.

About the Author: Dan O’Connell 

Dan O’Connell is an accomplished business leader with a deep expertise in Sales and Marketing. As a partner of SCG, Dan plays a crucial role in developing and managing their Client Services, bringing a strategic approach to Account Management, Client Branding, and Customer Success. With nearly a decade of experience working with emerging companies across the U.S., Canada, and the U.K., Dan has been instrumental in helping businesses scale effectively and enhance their market presence. His ability to blend strategic insight with a focus on delivering exceptional client experiences has made him an invaluable asset to SCG and the clients he serves.