How upskilling strengthens companies and employees
Christian Gronowski
30. June 2025
Upskilling enables companies and employees to keep pace with the rapid changes in the world of work. New technologies, tools and working methods require continuous adaptation in order to remain fit for the future.
By upskilling, companies are closing skills gaps that are opening up in many sectors. Technological progress is bringing about major change in many professions. In particular, advancing digitalization, such as the use of AI, more automation and robotics, requires appropriate qualifications.
However, upskilling is not only an important factor in the transformation of companies, the right measures can also strengthen the motivation, loyalty and innovative strength of the workforce.
In this article, we explain how you can use upskilling to benefit your employees and your company in equal measure.
What does upskilling mean?
The term comes from the English language: A “skill” is a skill or ability and “up” means upwards in this context. Upskilling in German therefore means that existing skills are raised to the next level.
The definition of upskilling is therefore the further qualification or development of employees in the existing field of work.
In contrast, training or further training tends to serve the purpose of reorientation or the provision of an additional qualification.
Why upskilling is essential for companies
According to studies by the World Economic Forum, around half of all employees worldwide will need a targeted expansion of their specialist knowledge over the next five years.
A full 85 percent of employers are planning further training measures during this period.
There are many reasons for this:
New legal requirements and regulations: Data protection requirements, sustainability requirements, compliance guidelines or industry-specific regulations regularly present companies with new challenges. Upskilling ensures that employees understand these requirements and implement them correctly.
Technological progress and shorter innovation cycles: Digitalization and the development of AI (artificial intelligence) in particular are ensuring that work processes and even business models are changing significantly at an ever faster pace. If you don’t want to be left behind, you need to make your workforce fit for the future and continuously expand their skills. This is the only way for companies to remain competitive in the long term.
Shortage of qualified workers and changing job profiles: Not only are work processes changing, the requirements in technical and digital occupational fields are changing drastically and completely new jobs are also emerging. Unfortunately, it is not easy to find suitable, well-trained staff. However, instead of constantly recruiting new employees, it can make more sense to develop existing talent in a targeted manner. This not only saves time and money, but also brings us to another reason why upskilling is indispensable today:
Employee loyalty and motivation: Anyone who is selected by their employer for an upskilling measure feels valued and secure. After all, they are investing in their personal and company future. This provides a motivation boost and, as a result, more commitment and loyalty.
Upskilling versus reskilling: which is which?
The term “reskilling” is also often used in connection with upskilling. However, the terms are not synonyms, but mean different things. What they both have in common is that they are measures for further professional qualification, but they differ in terms of the objectives pursued.
Upskilling is about employees deepening their existing knowledge or learning new skills that have become important in their profession or area of responsibility.
The aim is to keep pace with new developments.
- A project manager expands her knowledge of agile methods
- A system operator is taught how to work with sensors
- A sales employee is trained on a new CRM system
Reskilling is different: here, a team member is qualified for a completely new area of responsibility or even a new job. This can be useful if existing jobs are eliminated due to automation, outsourcing or structural change.
- A telephone customer advisor takes on a role in community management.
- A production employee is retrained as an operator of automated production systems.
- An accountant is trained as a data analyst.
In short:
Upskilling: existing role, new skills.
Reskilling: new role, new knowledge.
The advantages of future-oriented qualification
Upskilling has a positive effect on several levels. Companies secure their competitiveness through strategically planned and implemented measures, and employees benefit from the targeted promotion of their individual skills.
The advantages for companies
Higher productivity: Highly qualified employees work more efficiently, make better decisions and are more confident in dealing with new technologies and decisions.
Employee retention and low staff turnover: those who can develop further stay and are more satisfied. This improves the atmosphere and reduces staff turnover. This saves companies the costs of recruiting and training new employees.
Securing future viability through flexibility: Markets are changing rapidly. By upskilling, companies ensure that their teams can react more quickly to new market requirements, reorganize work areas or cushion bottlenecks internally.
Strengthening the employer brand: The competition for talent is not getting any easier. Those who invest in the development of their workforce are perceived as modern, employee-oriented and future-proof. – A clear advantage in the competition for talent.
The advantages for employees
Security that goes beyond employment: new skills increase the chance of being needed in the future. At the same time, the certainty of a secure job also creates future security for your own life.
Personal growth and new perspectives: The further development of professional qualifications has a direct beneficial effect on your career. It also strengthens your own self-image. Those who are upskilled can be sure: “I am growing, I will be needed in the future, I am relevant”. This very often results in a boost in motivation and a willingness to take on more responsibility.
Greater career opportunities: The development of professional qualifications opens up new career opportunities, for example in project management, as a technical expert or team leader.
Recognition, motivation and psychological relief: those who are promoted in their company feel valued. It shows: “We are investing in you”. This makes you happy and ensures more commitment.
Taking part in an upskilling measure can also have a relieving effect. Especially in times of rapid technological progress, it is liberating to know: “It is okay to have learning needs and to receive support.” This takes the pressure off and encourages a willingness to learn.
More enjoyment at work: Those who master new tools, technologies or methods not only work more efficiently, but also with more enjoyment. And that is an advantage that cannot be emphasized enough. After all, enjoyment is the driving force that keeps people on the move.
In which sectors is the need for professional development particularly acute?
In short, there is currently no area in which upskilling is not necessary – be it in industry, retail or administration. In some sectors, however, it is particularly acute:
Industry
Automation, digitalization and networked systems are the buzzwords of professional change in production. Skilled workers should be qualified in dealing with sensor technology, control systems and digital interfaces, for example.
Public service
Digitalization has long since found its way into administrations, resulting in changes to processes, e-files and new online services. At the same time, data protection and IT security must be guaranteed. Upskilling provides employees with the necessary updates.
Healthcare
Digital patient files, changes in documentation requirements and new medical technologies require constant knowledge expansion on the job. Nursing staff, administrative staff and medical specialists require regular training to keep them up to date.
Trade
Whether stationary or online: Here, too, it is advisable for employees to expand their skills. Changes not only affect digital tools such as checkout and merchandise management systems, customer expectations are also changing and bringing with them new requirements.
Education and upbringing
The need for continuous expansion of media and digital skills is particularly high in this area. Digital learning, hybrid teaching and media education are at the top of the agenda in schools, daycare centers and universities. The targeted further development of specialist staff is therefore even of social interest.
How we implement upskilling in your company
Any competence development measure is only as good as its implementation. For upskilling to act as a driving force for your company, the approach must be precisely tailored to your goals, structures and needs. There is no one-size-fits-all approach, because every customer is unique.
- In order to provide you with the best possible support for your project, we ask the right questions during our conception phase:
- Looking at the map: We analyze the needs, define the goals, identify the target groups, develop our strategy, select the right methods and create the project plan.
- Exploration by travel companions: Our experts work their way deep into your company. How do your teams work? We get a picture of your specific processes, roles and software solutions.
Packing suitcases: How and where will the knowledge expansion be implemented? We work with you to plan the step-by-step implementation. We create WBTs (web-based training) and determine training locations and formats. In doing so, we attach great importance to not disrupting your day-to-day work and to conveying the best possible content.
We value individual advice for sustainable learning success!
Questions and answers about upskilling
There is an overlap between upskilling and continuing education. But they differ in terms of context. Upskilling primarily expands existing skills with regard to new technological or organizational requirements. Continuing education is therefore a kind of umbrella term that describes the deepening of knowledge, skills and competencies that go beyond initial training.
This varies from person to person: some measures take a few hours, others take weeks or months.
Upskilling means further training within the current role; reskilling, on the other hand, is the qualification for a new role.
Upskilling refers to the targeted expansion of existing skills within the existing role. The aim is to master new requirements and keep pace with change.
One challenge is often that the knowledge update is not approached systematically enough. A clear strategy, management involvement and practical implementation are important. We help you to master this challenge.
Upskilling is particularly useful for specialists who have to deal with new tools, processes or customer requirements.
Upskilling is suitable for companies or authorities of any size and in any sector – especially where technological, structural or market-related changes are taking place.
