Reskilling and upskilling: what’s the difference and why do they matter?

Remaining agile in the workplace is key for all at this time, whether that’s as an employer or as an employee. There are limited jobs for life nowadays and gone is the time when you stuck with the same company for 40 years, working your way up the career ladder.

It just doesn’t work like that anymore and certainly the Gen Z generation aren’t after that type of career journey. It’s more a case of pivoting when needed, whether that’s into a new role, a different company, or another sector altogether.

This is where upskilling and reskilling come in. The debate isn’t so much about jobs any more; it’s about the skills that remain, which are central to competitiveness and growth in the UK.

In this article, you will learn the distinct definitions of upskilling and reskilling, how they differ, why they matter to the jobs market, and how to approach both in the workplace.

Let’s define these two words and the difference between them.

Upskilling is when a member of staff undertakes continued professional development (CPD), such as training or a series of workshops, in order to expand their current skill set and enhance their performance within the same role, to advance them along the career journey.

Below is an example of upskilling, where capability is enhanced within an existing role to improve performance, resilience, and future readiness.

Example

Priya is an IT Manager in a financial services organisation. The business is accelerating its use of cloud platforms and AI-enabled tools. While Priya’s role doesn’t change, the skills required to perform her role will. So instead of looking for another job or moving into a new position within the company, Priya takes courses and targeted training in cloud architecture, data security, and AI governance to upskill herself. This enables her to lead more complex digital projects and support the organisation’s transformation agenda.

Reskilling is where employees learn new skills outside of their existing skill sets, with the aim of either shifting into a different role or transitioning into a totally new career. These new skills can be associated with their current situation, or be completely new.

Example

As a Customer Operations Associate, Adam works for a utilities company in Harrogate. Due to automation reducing the need for manual processing, his role is regarded as in decline. But instead of leaving the business, Adam is reskilled in data analysis and service design through a structured programme, enabling him to move into a newly created role which supports the digital customer journey. This is a clear transition into a different role, illustrating how reskilling supports the workforce redeployment while retaining Adam’s valuable organisational knowledge.

These definitions and examples show that upskilling and reskilling are not interchangeable or in competition with each other, as each has a distinct purpose and strategic outcome of its own. Think of upskilling as sharpening your tools and reskilling as building a whole new toolkit.

Setting a distinction between upskilling and reskilling matters because:

• It needs a different design for career pathways and learning journeys
• There are different ROI expectations
• HR leaders will need to take different success metrics into account
  
  

A recent survey of 5,625 HR professionals and 16,000 employees showed that skills gaps, upskilling, and reskilling is the top challenge for HR for 2025 – 2026, with 29.3% of employers citing this in the UK. On top of that, the UK government’s Employer Skills Survey reveals that 12% of employers report a skills gap, with 1.26 million employees considered not fully proficient at their roles.

It could be because investment in training has dropped by 29.5% per worker since 2011, with skills spending from the government falling £1 billion below 2010 levels in real terms, with all of this exacerbating capability gaps.

With over half (53%) of employees reckoning their bosses aren’t investing enough in their skills development, and many worrying about the impact of AI and how automation could take away their jobs, it’s time to hit the restart button on upskilling and reskilling.

• Strengthens the capability within existing roles as skill requirements evolve
• Improves employees’ productivity, quality, and confidence without changing any job architecture frameworks
• Supports digital and organisational transformation at a faster pace
• Increases employee retention and engagement by investing in the future of employees

• Eases the redeployment of employees from roles in decline or those that are becoming obsolete into areas of future demand, such as green and tech jobs
• Reduces redundancy costs and the dependence on having to hire externally
• Retains organisational knowledge of experienced staff
• Supports internal mobility and sustainable career transitions

The combined impact of upskilling and reskilling leads to building a more resilient and agile workforce, while creating longer-term career pathways for staff. It also helps organisations respond more effectively to skill gaps, automation, and shifting changes in the labour market.

First off, there needs to be a complete understanding of how roles are developing before any upskilling starts taking place. Then, the following can be applied:

• Pinpoint which existing roles are changing, whether that is due to technology, regulations, or shifting business priorities
• Focus on strengthening the relevant skills within each current role instead of unnecessarily redesigning jobs
• Use targeted learning, such as coaching, courses, on-the-job projects, and mentoring
• Ensure there is an immediate application of these new skills in order to reinforce the learning and improve performance
• Make sure managers are equipped to support this development with feedback, specific assignments, and regular 1-2-1 conversations
• Illustrate how enhanced skills increase either the impact, progression, or reward through the use of comprehensive career frameworks
• Measure success through performance, productivity, and engagement – not just the completion of training, as it’s got to mean something and show tangible results

A more forward-looking and strategic approach is required here, as reskilling means preparing employees for different jobs, rather than enhancing current ones.

• Clearly articulate to members of staff the changes that are happening, why that is, and the support that is available to them
• Identify soon-to-be gone roles, along with areas of future demand, through strategic workforce planning
• Prioritise areas of reskilling where redeployments will ensure the best staff and business outcomes
• Modify programmes that tally formal training with new job exposure as well as practical experience
• Match each employee to a suitable new role using skills assessments and career guidance
• Make sure that internal mobility pathways are easily visible with extensive career frameworks
• Measure success through redeployment rates, time to proficiency, and retention
  
  

1. Strengthens workforce capability

The 2025 Future of Jobs report from the World Economic Forum states that employers expect 39% of core skills will have changed by 2030, which highlights an ongoing need to upskill and reskill in order to remain competitive within a changing labour market.

2. Retention and engagement

Concerns about career progression and lack of training investment will directly impact retention, especially among women and early-career employees, with 29% of UK women citing limited development as a source of work dissatisfaction.

3. Competitive advantage

Organisations that actively build their internal talent, with clear pathways for ease of movement between roles, are better positioned to respond quickly and effectively to volatility within the labour market.

4. Company brand and social values

Forward-thinking training strategies enhance the employer brand, with candidates and internal talent perceiving these companies as investing in its people, and not just the end result.

1. BT and upskilling

BT offers an ongoing digital skills programme (Digital Way of Life Programme) which trains staff in analytics, cloud computing, and cybersecurity, thus reducing the need to depend on hiring external talent. This shows proactive talent development rather than reactive hiring, and is held up as an example of upskilling that builds internal digital capability and improves retention.

2. Tesco and reskilling

During the pandemic, Tesco retrained thousands of its workers to respond to a huge rise in demand in online shopping and logistics. Many employees moved into roles that supported the e-commerce operation and, later, Tesco offered permanent positions to a significant number of these reskilled workers, demonstrating how reskilling your workforce can support business continuity and retention, especially in a crisis. It also showed the adaptation of the staff to a major change in customer behaviour, albeit forced because we all had to stay at home.

There shouldn’t be a tussle between upskilling and reskilling as they are strategies that complement each other. The way forward is to fully assess your skills landscape, then commit to a structured plan that integrates both upskilling and reskilling into your talent strategy.

If your organisation needs help with this or career framework / outplacement services, contact us at the earliest opportunity to find out how we can help.