HR Glossary

    Upskilling

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    What is upskilling?

    Upskilling is the process of enhancing employees' qualifications by developing and perfecting existing skills to increase their effectiveness in their current role within the organisation. Unlike reskilling, which involves acquiring entirely new skills, often leading to a change in role within the organisation, upskilling focuses on deepening and broadening existing competencies.

    Upskilling positively impacts both the organisation and employees, enabling them to adapt to changing business needs and labour market demands. In an era of automation and digitisation, upskilling is particularly important as it helps employees remain competent and competitive in the face of rapidly changing technologies.

    What competencies and skills can be the subject of upskilling?

    Upskilling can encompass a wide range of employee competencies, which can be divided into several categories:

    1. Technical Skills

    • Digital competencies: programming, data analysis, cybersecurity, database management
    • Operating new technologies: using AI, big data, cloud computing, IoT
    • Industry-specific skills: specialised technical knowledge related to a particular sector

    2. Soft Skills

    • Communication: effective presentation, negotiation, listening skills
    • Leadership: team management, coaching, mentoring
    • Flexibility and adaptation: ability to quickly adjust to changes
    • Critical thinking and problem-solving: an analytical approach to challenges

    3. Business Skills

    • Project management: agile methodologies, resource management, scheduling
    • Business analysis: data interpretation, trend identification, decision-making
    • Strategic thinking: long-term planning, understanding the broader business context

    In the context of continuous learning, upskilling can apply to virtually any skill related to an employee's current role that requires deepening or updating.

    Benefits of Upskilling for Organisations

    Investing in upskilling brings a number of tangible benefits to companies:

    1. Increased Productivity and Efficiency

    Employees with advanced skills in their field are able to work more efficiently and achieve better results.

    According to studies, 93% of CEOs who offer systematic upskilling programmes report a measurable increase in productivity and project completion rates.

    2. Addressing Skills Gaps

    Upskilling allows for flexible responses to changing market demands by developing employee competencies in areas where the company identifies deficits. Instead of costly and time-consuming external recruitment, companies can develop talent internally.

    3. Increased Employee Retention

    Upskilling programmes give employees the feeling that their employer cares about their future, which significantly reduces turnover.

    Research shows that 94% of employees would stay longer with a company that invests in their professional development.

    4. Better Adaptation to Change

    Companies that regularly upskill their employees are better prepared for technological and market changes. This allows them to adapt more quickly to new conditions, which is crucial for maintaining market competitiveness.

    5. Cost Savings

    Recruiting and onboarding new employees generates significant costs.

    Upskilling existing staff is often more economical – studies indicate that recruitment costs exceed training costs by 20-30%.

    6. Strengthening Organisational Culture

    Through upskilling, companies create a culture of continuous learning and development, which positively impacts overall morale and builds stronger teams.

    Benefits of Upskilling for Employees

    Upskilling also brings numerous benefits for individual employees:

    1. Increased Market Value

    Employees who continuously develop their skills are more attractive to employers and can expect better employment conditions.

    2. Greater Job Security

    In an era of automation, employees with updated and advanced skills are less susceptible to job loss due to technological changes.

    3. Career Advancement and Development Opportunities

    By acquiring new skills, employees increase their chances of promotion and development within the organisation, which often leads to higher salaries.

    4. Greater Job Satisfaction

    The process of learning and improvement provides intellectual stimulation and a sense of achievement, leading to higher job satisfaction.

    5. Better Preparation for the Future

    Upskilling prepares employees for future challenges, giving them confidence that they can thrive in a changing professional environment.

    Examples of Implemented Company Upskilling Programmes

    Amazon: Amazon Upskilling 2025

    Amazon has invested $1.2 billion in training over 300,000 employees in in-demand skills as part of its Upskilling 2025 initiative. Programmes include:

    • Amazon Technical Apprenticeship: A US Department of Labor-certified programme combining classroom learning with practical training, preparing employees for roles in cloud support, data technology, and software development.
    • Career Choice: A pre-paid education programme that enables operations employees to earn diplomas and certificates in in-demand fields, from aviation mechanics to medical assistants.
    • Machine Learning University (MLU): Courses led by over 400 Amazon scientists, equipping employees with fundamental machine learning skills.

    The result is a significant reduction in employee turnover, faster innovation development, and a strengthening of the company's market position.

    Lloyds Bank: Digital Academy

    Lloyds Bank invested in the Digital Academy programme to prepare its employees for the challenges of digitising the banking sector. The programme focuses on:

    • Developing digital skills among employees at all levels
    • Training in cybersecurity and data protection skills
    • Modernising banking processes through the use of new technologies

    As a result, Lloyds Bank has successfully transformed traditional banking services into modern digital solutions, maintaining its competitive position in the market while retaining valuable human capital.

    Siemens: Learning Ecosystem

    Siemens implemented a global learning ecosystem, offering employees access to various courses on the latest technologies. This approach increased employee engagement by 49% and helped the company become innovation-friendly.

    Example of Upskilling for a Marketing Department Employee

    A specific example of upskilling is a marketing specialist who acquires additional competencies in data analysis:

    Starting point: A specialist with traditional marketing skills (campaign planning, copywriting, knowledge of communication channels)

    Upskilling: Acquiring marketing data analysis skills (Google Analytics, SQL, Business Intelligence tools)

    Effect: Ability to independently analyse campaign effectiveness, create advanced reports, and make data-driven decisions

    Benefit for the company: Better ROI from marketing campaigns, faster optimisation of activities, reduced need to hire additional analysts

    When should a company decide to implement upskilling programmes?

    Companies should consider implementing upskilling programmes in the following situations:

    1. Implementing new technologies or processes

    When an organisation introduces new tools, systems, or work methodologies, upskilling helps employees adapt effectively to changes.

    1. Identifying skills gaps

    Regular skills audits can reveal areas where appropriate competencies are lacking to achieve strategic goals.

    1. High employee turnover

    If a company experiences high staff fluctuation, upskilling programmes can help retain talent by offering development paths.

    1. Recruitment difficulties

    When there is a shortage of specialists with specific skills in the job market, developing these competencies within the organisation becomes more cost-effective.

    1. Business transformation

    During periods of significant strategic change, upskilling can help prepare the organisation for new directions of development.

    1. Changes in the competitive environment

    When competitors introduce innovations or raise quality standards, upskilling employees can help maintain a competitive advantage.

    When should an employee consider upskilling?

    Employees should consider upskilling in the following circumstances:

    1. New technologies in the industry

    When new technologies or methodologies emerge in an industry, employees should strive to acquire these skills to remain competitive.

    1. Career development stagnation

    If an employee feels they have reached a plateau in their professional development, upskilling can open up new opportunities for advancement.

    1. Threat of automation

    In industries threatened by automation, acquiring new skills can protect against job loss or enable a transition to more advanced roles.

    1. Desire for increased remuneration

    Upskilling often leads to an increase in an employee's value, which can translate into a higher salary.

    1. Personal development goal

    Regardless of external factors, continuous development and learning lead to greater professional and personal satisfaction.

    What can an employee do independently?

    Does the employer not support employee development? Even without additional employer support, employees can take upskilling initiatives:

    1. Identifying key skills

    By analysing industry trends, job advertisements, and industry reports, employees can determine which skills will be in demand in the future.

    1. Utilising online educational platforms

    Platforms such as Coursera, Udemy, LinkedIn Learning, or edX offer thousands of courses in various fields, often at affordable prices or even for free.

    1. Participating in webinars and industry conferences

    These events are an excellent opportunity to learn about the latest trends and network with experts.

    1. Joining professional communities

    Professional groups, both online and offline, enable the exchange of knowledge and experience with people of similar interests.

    1. Seeking mentors

    Experienced professionals can provide valuable guidance on career development and acquiring new skills.

    1. Independent projects and practice

    Applying newly acquired knowledge in practice is crucial – this can include undertaking personal projects, volunteering, or freelancing.

    How to implement upskilling in an organisation?

    Effective implementation of an upskilling programme requires a systematic approach:

    1. Needs Analysis and Identification of Missing Employee Competencies

    The first step is to conduct an in-depth analysis of the skills required to implement the business strategy and compare them with the current team potential.

    The tomHRM HR system with its free competency module can significantly facilitate this process. It enables systematic mapping of employee competencies, identification of gaps, and monitoring progress in addressing them.

    2. Setting Goals and KPIs to Determine Upskilling Effectiveness

    Define clear, measurable goals for the upskilling programme and metrics to assess its effectiveness:

    • Skill acquisition indicators: tracking the percentage of employees completing specific courses or certifications
    • Performance indicators: measuring changes in productivity or work quality after training
    • Retention indicators: monitoring employee turnover in departments covered by upskilling programmes
    • Employee satisfaction: collecting feedback on the usefulness of training

    3. Choosing Appropriate Training Methodologies to Acquire New Skills

    Tailoring training programmes to individual employee needs and the organisation's specifics:

    • Online courses and e-learning: flexible solutions enabling self-paced learning
    • Workshops and in-person training: intensive sessions with an emphasis on practical application
    • Coaching and mentoring: individual support tailored to employee needs
    • Job rotation: gaining experience in different roles within the organisation
    • Development projects: learning through the execution of specific tasks

    The tomHRM training management system allows for the creation of entire training paths that enable employee upskilling and reskilling. See how easy it is to manage training with our system!

    4. Creating a Culture of Continuous Learning

    Building an environment that fosters development and values continuous skill improvement:

    • Introducing regular development days
    • Encouraging managers to support training initiatives
    • Recognising and rewarding learning progress
    • Creating space for knowledge sharing within the team

    5. Monitoring and Evaluating Employee Development

    Regularly tracking employee progress and assessing the effectiveness of the upskilling programme:

    • Utilising a performance review system to monitor competency development
    • Regular skills reviews and adjustment of development plans
    • Gathering feedback from participants and managers
    • Analysing the impact of upskilling on key business indicators

    6. Adaptation and Scaling

    Based on collected data and feedback, the programme should be continuously refined and adapted to the changing needs of the company and employees.

    The State of Upskilling in Today's Labour Market – Data and Trends 2025

    Recent research indicates the growing importance of upskilling in global HR strategies:

    Upskilling Globally

    According to the World Economic Forum report, 50% of all employees will require upskilling or reskilling by 2030 due to advancing automation and digitisation.

    • 93% of companies worldwide declare that upskilling is a key element of their employee development strategy.
    • 77% of employees globally want to acquire new skills or completely retrain.

    Upskilling in Europe

    • In Europe, 70% of companies plan to intensify upskilling activities within the next 5 years.
    • The European Commission estimates that 40% of European employees do not possess the appropriate digital skills required for today's labour market.

    Upskilling in Poland

    The situation in Poland also reflects global trends:

    • According to studies, 65% of Polish companies identify skills gaps as a significant barrier to development.
    • 42% of employees in Poland will need training by 2030.
    • 31% will be trained within their current role.
    • 17% will require deeper upskilling and a role change.
    • Only 10% may struggle to adapt to new requirements.

    At the same time, 95% of basic skills in Poland will change by 2030 (compared to a global average of 83%), underscoring the urgent need for a systematic approach to upskilling.

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