Upskilling builds on the skills an employee already uses, so they can do their current job better or keep up as it changes. Reskilling builds new skills so they can move into a different role. Reskilling vs upskilling comes down to one question: will the job still exist in roughly the same form in two years?
In this article, we break down the key differences between reskilling and upskilling, examine when to choose each approach, and outline practical steps to implement them successfully.
Reskilling vs upskilling: what are the key differences?
Reskilling and upskilling help employees meet changing business needs, but they serve different goals. The main difference lies in how a person’s job or career path changes after training. The table below compares both approaches across five key areas.
| Upskilling | Dimension | Reskilling |
|---|---|---|
| Improve performance or advance in the current career path | Goal | Prepare for a different career path |
| Stays the same or grows in scope | Role | Changes, often with a new team or function |
| Builds on skills already in use | Skill distance | Develops new skills using transferable knowledge |
| Usually takes less time and costs less | Time and cost | Often takes longer and costs more |
| A new tool, process, or work standard | Trigger | A role is automated, changed, or phased out |
| A nurse learning a new patient records system | Example | A retail cashier moving into inventory planning |
Both approaches can use courses, mentoring, hands-on projects, and workplace training. The key difference lies in the goal of the learning, not the method.
Reskilling can cost more because employees need time to learn and may produce less work during training. But still, almost 88% of workers say they have applied new skills in their job over the past year. Employers should budget for both training costs and lost output while employees adjust to their new roles.
The World Economic Forum projects that by 2030, 59% of the global workforce will need reskilling or upskilling. But which is the right approach?
Both methods help businesses prepare their workforce for change. The right choice depends on the outcome they need. Employers should consider the future of each role before deciding which training path to follow.
What does each look like in the same situation?
To understand how reskilling and upskilling work, let us take an example:
A distribution company installs warehouse automation, changing the work of 40 warehouse pickers.
Upskilling path: The pickers learn to operate and monitor the new system. They keep their roles but take on new tasks. Short, focused training helps them use the new tools and meet the demands of their jobs.
Reskilling path: Some pickers may lose much of their manual work as automation expands. They train for other roles, such as inventory analysts or maintenance technicians, based on business needs and their skills gap. This path takes longer and may involve joining a new team and spending time learning on the job.
Key takeaway: The same change can call for two different training plans. The right choice depends on the future of each role. Upskilling workers for jobs that will disappear only delays the problem. Reskilling them when a short course would work wastes time and money.
How to choose between reskilling and upskilling?
Choosing between reskilling and upskilling starts with a clear view of future workforce development. Employers should assess which roles will remain and which skills will become more valuable. They should also use workforce development metrics to assess where employees can move as business needs change.
Choose based on what will happen to the employee’s role, not on the size of the training budget.
1. Apply the two-year test
Ask whether the role will exist in roughly the same form two years from now. If yes, upskilling may be the better choice. If not, consider reskilling the employee for a role that will remain in demand. This is a rule of thumb, not a fixed formula. Business needs and employee goals also matter.
2. Choose upskilling when the role remains stable
Upskilling works best when:
- A new tool, system, or work standard requires new skills.
- An employee is ready for more responsibility in the same function.
- The core duties of the role remain much the same.
3. Choose reskilling when the role is changing
Reskilling may be the better option when:
- Automation or other changes reduce the need for the current role.
- The business needs more workers in another function.
- A hard-to-fill role matches an employee’s transferable skills and interests.
4. Use both when the career path calls for it
Sometimes, upskilling is the first step toward reskilling. For example, a data entry clerk may first learn advanced spreadsheet skills, then train for a data analyst role. The first step builds a base for the new role and can make the next stage easier.
The best workforce development program links employee training to future business needs. Employers need to review role changes, skill gaps, and available career paths. They can then invest in the right training and help employees prepare for the work ahead.
Conclusion
The difference between reskilling vs upskilling comes down to the destination. Applying the two-year test decides which path your organization needs. To get started, pick a single critical role in your business, ask whether its core function will exist in two years, and fund the specific training approach that the answer points to.
FAQs
1. Reskilling vs upskilling: what should a business prioritize?
Prioritize reskilling when automation, technological shifts, or strategy changes make an existing role obsolete, requiring employees to transition into entirely new functional positions.
2. Is reskilling more expensive than upskilling?
Yes, reskilling generally requires higher upfront investment and longer training timelines.
3. How do you measure employee readiness for a reskilling program?
Evaluate baseline core competencies rather than specific technical knowledge. These traits determine how successfully an employee learns a new domain.
4. Can upskilling and reskilling programs run concurrently within the same organization?
Yes; most effective workforce strategies combine both. They upskill core operational teams to handle evolving day-to-day tools. While systematically reskilling surplus talent for high-demand, emerging business units
5. How do you prevent high turnover after investing heavily in employee reskilling?
Tie reskilling programs directly to formal internal career mobility agreements. Update job titles and corresponding compensation adjustments before the training program begins.
