Reskilling vs Upskilling: What’s the Difference? - Skill-Up Technologies (2024)

In its most recent Future of Jobs report, the World Economic Forum (WEF) shed light on the importance of reskilling and upskilling. The job market is changing fast. On the one hand, over the next decade, a significant share of newly created jobs will be in entirely new occupations. On the other hand, many existing jobs will either become redundant or require new skills.

Companies need people with the right skills for both the new and the old jobs. But there’s a skill gap in today’s labor market. There just aren’t enough people with the right skills to fill all the available roles. That’s why companies need to look within themselves. They need to reskill and upskill their employees if they want to adjust appropriately.

But what’s the difference between reskilling and upskilling, why are they effective strategies to address the labor market’s skill gap, and how can you implement a reskilling and upskilling strategy? That’s what we will answer in this blog post.

The Definitions of Reskilling and Upskilling

Reskilling vs Upskilling: What’s the Difference? - Skill-Up Technologies (1)

Reskilling and upskilling are sometimes used interchangeably, but there’s an important difference between both terms. Reskilling means teaching your employees the skills for an entirely new occupation. Usually, you would teach those employees who have the aptitude for such a transition. For example, you can reskill an accountant into a web developer.

Upskilling means teaching your employees advanced skills for their current occupation. There’s no need to change the career position or path of upskilled employees. You simply teach them the skills so they become better at what they’re currently doing. For example, you can upskill a financial analyst with a course that teaches them SQL, so they can better extract data from databases.

The Benefits of Reskilling and Upskilling

Reskilling is about versatility, while upskilling is about specialization. You’ll need both in order to succeed over the next decade. The business leaders surveyed for the most recent Future of Jobs report said that around 40% of their workforce will require reskilling in the near future. Almost all business leaders expect employees to pick up new skills on the job.

It makes sense to teach skills to your workforce to fill new or existing roles, because they have a better understanding of what makes your company tick. They know who your customers are, can navigate company politics, understand lines of communication, etc. New hires don’t have such knowledge and will need time to get up to speed with it.

Additionally, the right reskilling and upskilling strategy makes your company more attractive in the eyes of both your current workforce and potential hires. There’s a career trajectory at your company. People won’t be stuck in their roles forever. They will learn and grow with you. That’s an attractive proposition for employees and new hires alike.

Reskilling and upskilling also make you a more agile company. You’ll be able to react faster to external developments, because you know how to teach your employees the right skills for the job. If you have to rely on new hires for any new development, you’ll eventually find yourself in a situation where you cannot find the people with the right skills.

How to Implement a Reskilling and Upskilling Strategy

Reskilling vs Upskilling: What’s the Difference? - Skill-Up Technologies (2)

Business leaders in a 2020 McKinsey survey said that skill building is the best way to close the skill gap currently prevalent in the labor market.

Between 71 to 90% of the leaders said that their current skill transformations have had a positive impact on:

  • The ability to realize the company’s strategy;
  • Their employees’ performance and satisfaction;
  • Their reputation as an employer.

But implementing the right reskilling and upskilling strategy is hard. It requires a large-scale effort that requires you to assess your current skill gaps, develop a strategy, and imagine a way to scale that strategy so it works across your entire company.

This is what Skill-Up Technologies specializes in. We work with brands such as Microsoft, Oracle, IBM, and Lenovo to deliver digital-ready learning solutions that scale globally. It’s vitally important to be able to reskill and upskill your employees. Once you know how to do it, you’ll be a more flexible, valuable, and future-proof company.

Reskilling vs Upskilling: What’s the Difference? - Skill-Up Technologies (2024)

FAQs

Reskilling vs Upskilling: What’s the Difference? - Skill-Up Technologies? ›

What is the difference between Upskilling and Reskilling? Reskilling focuses on preparing individuals for new jobs, while upskilling focuses on developing new skills for the same role.

What is the difference between reskilling and upskilling? ›

Upskilling advances talent on a linear path, such as the progression seen in Jordan's example. Reskilling connotes lateral movement, like Taylor's switch from hand skills to technical skills.

What is an example of upskilling and Reskilling? ›

For example, you can reskill an accountant into a web developer. Upskilling means teaching your employees advanced skills for their current occupation. There's no need to change the career position or path of upskilled employees. You simply teach them the skills so they become better at what they're currently doing.

What is technology upskilling? ›

A tech upskilling program equips employees with the technical skills and knowledge they need to succeed in their current role and progress their career. Tech upskilling programs can reduce hiring costs, accelerate delivery timelines, and improve productivity, innovation, and satisfaction across your organization.

How do I Upskill myself in technology? ›

Here are some ways you can upskill yourself today.
  1. #1. Take courses to keep yourself up to date with the latest technology. ...
  2. #2. Take up new projects. ...
  3. #3. Take up part-time opportunities. ...
  4. #4. Invest in developing your human skills. ...
  5. #5. Undertake professional networking.
Dec 4, 2019

Why Upskill and Reskill? ›

Fortunately, leaders have two highly effective talent development tools available to them: upskilling and reskilling. Upskilling and reskilling employees prepare companies for the changes happening now. These activities also get businesses ready to handle fast-approaching developments, which may require more agility.

What's Reskilling? ›

Reskilling is the process of learning new skills by employees to move onto a new role within their current company. Reskilling might be a good alternative to firing current employees and hiring new ones with a different skill set.

What is upskilling in the workplace? ›

Upskilling in the workplace involves promoting continuous learning by offering training and development opportunities to expand the skills, knowledge, and competencies of your current employees.

What is upskilling yourself? ›

It is the process of learning new skills that your organization needs to succeed now and in the future. By developing these proficiencies, upskilling closes the gap between what employees can do and what the organization needs them to do.

How do you Upskill someone? ›

How To Upskill Employees: 6 Practical Tips
  1. Assess Skill Gaps and Priority Areas. ...
  2. Create Employee Personal Development Plans. ...
  3. Set Aside Time for Learning. ...
  4. Connect Employees to a Mentor. ...
  5. Create a Post-Training Plan. ...
  6. Match Your Employees to Real-Life Opportunities.
Dec 8, 2022

What are technology skills? ›

Technology skills are all the abilities that help you interact with the digital world around you. Being technologically skilled refers to proficiency in digital or technical media. In this modern age, anyone who wishes to conduct their work efficiently should brush up on their technological knowledge.

What are technology skills called? ›

Technology skills — also called technical skills — are your ability to use computer-based technology to complete different tasks. Some of the most important technology skills to have are computer literacy, database management, website development, digital marketing, project management, and cybersecurity skills.

What is the purpose of upskilling? ›

Upskilling focuses on improving current employees' skill sets, usually through training, so they can advance in their jobs and find different roles and opportunities within the company.

How do you develop technology? ›

10 Steps to Build Innovative Technology
  1. Find an Unmet Need. ...
  2. Study the Effects of a Solution. ...
  3. Gather Requirements from Stakeholders. ...
  4. Design & Plan with all Stakeholders. ...
  5. Build and Deliver Often Using Clear Requirements. ...
  6. Feedback, Feedback, Feedback. ...
  7. Iterate. ...
  8. Tell Them Why They'll Love It.

What is a technical skill example? ›

Technical skills, sometimes referred to as hard skills, involve the practical knowledge you use in order to complete tasks. Some examples of technical skills are: Data analysis. Web development.

How can I learn different technologies? ›

Build something trivial. Don't spend too much time coming up with a fancy idea. Limit the project idea to the technology you are trying to learn and what you're already comfortable with. Don't attempt to pick up three to four new technologies at the same time.

What is upskilling and reskilling for the future of work? ›

The need for upskilling and reskilling has become increasingly evident during the past decade. A 2021 World Economic Forum report forewarned that over half of all employees worldwide will need to reskill or upskill by 2025. These are some ways upskilling and reskilling help companies prepare for the future.

What is the opposite of Upskill? ›

Reskilling is the opposite of upskilling in that it involves learning an entirely new set of skills.

How do you use upskilling in a sentence? ›

We are upskilling the team to help them be more effective in a difficult market.

How do I Reskill my workforce? ›

Here are some effective options:
  1. Mentoring and reverse mentoring — Professional mentoring programs are a cost-effective way to upskill junior team members and make them feel valued. ...
  2. Job shadowing — This is a great way to reskill workers by letting them gain experience in a different area of the business.
Mar 30, 2022

What is the impact of reskilling? ›

It allows businesses to retain exceptional employees even if their job or department was eliminated. The new position may share some aspects of their previous one but require new skills. In some cases, reskilling requires workers to earn a degree or certification in a different area of expertise.

What is retraining examples? ›

Job retraining is one of the ways those employees can reenter the workforce. Retraining means to train again in a new subject, for a new job, often at a new company or organization. For instance, during the pandemic, tourism workers found themselves without a job due to the circ*mstances.

What is the power of upskilling? ›

Upskilling and reskilling can help individuals gain the proficiency and aptitudes necessary to navigate sudden changes in the job market successfully. This can include learning about new industries or adapting to technological innovations that may be required for a particular role.

What is upskilling talent? ›

Upskilling is the process of learning new skills or of teaching workers new skills. Reskilling is the process of learning new skills so you can do a different job, or of training people to do a different job.

What is digital upskilling? ›

Digital upskilling involves providing training resources for relevant and useful digital skills to ensure your workforce can keep pace with digital transformation. Organizations should make digital upskilling a priority element of any internal digital transformation strategy.

What is a famous quote about upskilling? ›

There is no such thing as job security. Winning or losing is now happening faster than ever before. A shift in mindset is required to thrive in the current era and this cannot be achieve at an academic level, social latitude or political sphere but at a personal level.

Is Upskilling the same as training? ›

The difference between these two concepts lies in the objective of the training: whereas upskilling aims to teach employees new skills to optimise their performance; reskilling — also known as professional recycling — sets out to train employees to adapt to a different post within the company.

How do I make an upskilling plan? ›

  1. 8 steps to start your own upskilling programme.
  2. Step 1: Assess the skills you have today. ...
  3. Step 2: Assess the skills you will need over the next five years. ...
  4. Step 3: Ensure employee buy-in. ...
  5. Step 4: Set upskilling goals. ...
  6. Step 5: Assess what learning format works best for you.

What is a synonym for to Upskill? ›

inculcate. indoctrinate. introduce. mainstream. make a man (out) of someone.

How do you motivate employees to Upskill? ›

14 PRACTICAL STRATEGIES FOR MOTIVATING YOUR STAFF TO LEARN AND GROW IN THE WORKPLACE
  1. Incorporate employee development into strategic planning. ...
  2. Formalise learning and development. ...
  3. Incentivise and recognise employee achievements. ...
  4. Offer both financial and intrinsic rewards. ...
  5. Reward growth and upskilling.

What are the 5 examples of technology? ›

6 common types of technology
  • Television. Television sets transmit signals over which we can listen to and view audio and visual content. ...
  • Internet. ...
  • Cell phones. ...
  • Computers. ...
  • Circuitry. ...
  • Artificial intelligence. ...
  • Software. ...
  • Audio and visual technology.
Mar 10, 2023

What are the 5 technological process skills? ›

Modern technology involves higher technological process such as creating, designing, modelling, predicting and experimenting, in conjunction with practically problem- solving.

Why is technology skills important? ›

If you understand how IT processes work, technology becomes less frustrating and reduces error. If you know a few technical skills in IT, this will enable you to maintain and upgrade your devices and software, and therefore prevent issues occurring in the future.

What are the four basic technical skills? ›

4 Basic Tech Skills Everyone Needs to Know
  • Email.
  • Microsoft Office.
  • Social Media.
  • Operating a Smart Phone.
Feb 25, 2022

What are 7 soft skills? ›

The right personality traits can help you excel at work. Highly valued soft skills include communication, time management, network building, empathy, critical thinking, being proactive and self-awareness. You can develop soft skills in many ways, such as by taking online classes and conducting practice scenarios.

What is the simple meaning of technology? ›

Technology is the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.

What makes a good technology strategy? ›

A successful technology strategy involves the documentation of planning assumptions and the development of success metrics. These establish a mission-driven strategy, which ensures that initiatives are aligned with the organization's goals and objectives.

How technology is improved? ›

Improved Quality of Life

By seeping into every aspect of our life, technology has changed the way we behave and operate. From communication and transport to healthcare and connectivity, technology has enhanced our lives for the better. The best part is that it is ever-evolving by facilitating more advanced features.

How do you list technology skills on a resume? ›

To display your technical skills, start by creating a Skills section in your resume. Give this section a heading like “Skills”, “Core Competencies”, or something similar. You can then list your skills beneath that heading. Most job seekers list all of their skills under one title, both technical skills and soft skills.

What are skills vs technical skills? ›

The key difference between soft skills and technical skills is that soft skills are interpersonal and character traits employees need to perform their duties, whereas technical skills are job-related abilities and knowledge employees need to perform their tasks at the workplace.

What is your technical strength? ›

Technical skills refer to the specialized knowledge and expertise needed to accomplish complex actions, tasks, and processes relating to computational and physical technology as well as a diverse group of other enterprises.

Which technologies are easy to learn? ›

Easiest Technology Skills To Learn in 2023
  • Skill #1. HTML.
  • Skill #2. Excel.
  • Skill #3. SQL.
  • Skill #4. GIT.
  • Skill #5. Low Code Development Platforms.

Which is the best technology to learn? ›

Here is the list of the most in-demand and trending tech skills that will offer you a successful career:
  • Data Science.
  • Cloud Computing.
  • Artificial Intelligence.
  • DevOps.
  • Blockchain.
  • RPA (Robotic Process Automation)
  • Augmented Reality (AR) and Virtual Reality (VR)
  • Cybersecurity.
May 22, 2023

Which technology is in-demand now? ›

Software Development

The programming languages in the highest demand for software developers in 2023 include JavaScript, Python, Go, Java, Kotlin, PHP, C#, Swift, R, Ruby, C and C++. Career-minded software developers will also benefit from technical skills in cloud computing, containers and database management.

What is an example of upskilling employees? ›

Examples of upskilling include both soft skills and technical knowledge. By upskilling employees, management could choose to enhance their team's emotional intelligence and improve collaboration in the work environment, or they could target a specific technical skill missing from their workforce.

What is your upskilling meaning? ›

intransitive : to acquire more advanced skills through additional education and training.

How do you Upskill and Reskill employees? ›

Here are some effective options:
  1. Mentoring and reverse mentoring — Professional mentoring programs are a cost-effective way to upskill junior team members and make them feel valued. ...
  2. Job shadowing — This is a great way to reskill workers by letting them gain experience in a different area of the business.
Mar 30, 2022

Why is upskilling important in the workplace? ›

Upskilling employees can benefit a company in many ways. It can increase productivity and efficiency, improve the quality of work, and enhance problem-solving abilities. Upskilling can also make employees more adaptable and flexible, and enable them to take on new responsibilities and challenges.

What are examples of reskilling? ›

Reskilling is similar in that it is the development of skills within a workforce. However, reskilling differs because the skills an employee learns are for a different job or entirely new role. For example, reskilling programs could transform retail workers into software developers or cloud engineers.

What are the benefits of upskilling? ›

10 Benefits of upskilling your employees
  • Adapt to new technologies.
  • Build resilient teams.
  • Boost employee satisfaction.
  • Increase employee retention rates.
  • Provide a better quality of service & diversify your offering.
  • Increase ROI.
  • Attract new talent.
  • Enhance diversity within your teams.
Apr 20, 2023

What is the best way to Upskill? ›

Here are 7 key ways to take charge of your own development to stay employable.
  1. Ask for stretch opportunities at work. ...
  2. Stay plugged in. ...
  3. Join an industry or professional association. ...
  4. Relevant courses outside of the workplace. ...
  5. Learn at work. ...
  6. Career mapping. ...
  7. Employer supported external study.

How do you Upskill an employee? ›

How To Upskill Employees: 6 Practical Tips
  1. Assess Skill Gaps and Priority Areas. ...
  2. Create Employee Personal Development Plans. ...
  3. Set Aside Time for Learning. ...
  4. Connect Employees to a Mentor. ...
  5. Create a Post-Training Plan. ...
  6. Match Your Employees to Real-Life Opportunities.
Dec 8, 2022

What do you call a new person without skills? ›

incompetent. adjective. lacking the ability or skills to do something.

What is another word for upskilling? ›

To learn new skills, or to improve one's existing skills. train. learn. master. prepare.

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