Upskilling as a Key to Business Development

You might have heard of the term “upskilling”. It is one of the most popular topics in the HR industry and business management circles. However, is it just another fad phrase, or something to which businesses and employees alike, should pay more attention to and engage in?

Let us explore and understand the peculiarities of this term, and what it can do for us and our businesses.

Improving skills is very important for businesses for many reasons. It affects how well they compete, adapt, and succeed in the market. As industries change and new technologies emerge, businesses often find that their team members don’t have the skills to meet the changing business needs. Upskilling helps fill these gaps, making sure employees have the right skills for today’s business needs. According to McKinsey, 87% of executives are already seeing or expecting skill gaps in their workforce in the next six years.

Why upskilling is vital for business?

From my experience in the financial, service, and retail sectors, I can confidently say that both businesses and employees benefit immensely from upskilling. It’s an innate need to stay competitive and productive, whether you’re an individual or a business. As an HR professional, I’ve always prioritized on-boarding team members who continuously learn and develop their skills. These individuals are the driving force behind any business’s success and consistently deliver exceptional results.

Managing Generation Z teammates can be challenging, as they are often more demanding and require extra effort to keep them engaged and satisfied. However, upskilling is the key to ensuring their retention and engagement, leading to higher job satisfaction.

Time flies, and failing to innovate means failing to grow and succeed. Upskilling fosters innovation and growth and ensures business adaptability to changes and customer needs. As HR professionals, it is crucial to create an environment that encourages upskilling.

Why it is important to upskill for employees? 

Upskilling is essential for employees for several reasons, significantly impacting their career development, job security, and overall satisfaction. Here are some key points:

  • Career Advancement

Upskilling provides employees with the skills and knowledge necessary to advance in their careers. By acquiring new competencies, employees can qualify for promotions, take on more responsibilities, and increase their earning potential. This is particularly important as job roles evolve and new opportunities arise within organizations​.

  • Job Security

As industries change and new technologies emerge, certain skills may

become obsolete. Upskilling helps employees stay relevant and competitive in the job market, thereby enhancing their job security. Employees who continuously update their skills are better positioned to adapt to changes and are less likely to be affected by layoffs or restructuring​​.
From my experience I can confidently state, that whenever I changed sectors, I sought job security, and upskilling was the key to personal and professional growth and satisfaction. It opened doors to new opportunities, higher earnings, and greater achievements.

  • Increased Employability

In a rapidly changing job market, having up-to-date skills increases employability. Employers value candidates who are proactive about their professional development and possess the latest skills relevant to their industry. Upskilling makes employees more attractive to current and potential employers.

  • Enhanced Job Performance and Productivity

Learning new skills can lead to improved job performance and productivity. Employees who upskill are often more efficient and effective in their roles, which can lead to greater job satisfaction and recognition from their employers​

  • Personal and Professional Growth and Satisfaction

Continuous learning and skill development contribute to personal and professional growth. Employees who engage in upskilling often experience a sense of accomplishment and increased confidence in their abilities. This personal growth can lead to greater job satisfaction and overall well-being.

  • Staying Competitive

To remain competitive in a fast-paced job market, employees need to differentiate themselves. Upskilling provides a way to stand out by demonstrating a commitment to professional development and the ability to bring valuable, up-to-date skills to the table​.

What is the difference between upskilling and reskilling?

Upskilling involves improving your current skills, while reskilling is learning new skills for a different job role.
As an example, I can mention that during the COVID-19 pandemic, we all learned new things and adapted our jobs to more effective methods.

We should upskill even faster, than we think we should

Technological advancements are transforming the workplace. Upskilling allows employees to keep pace

with these changes, ensuring they can work effectively with new tools, software, and technologies. This adaptability is crucial for long-term career success in an increasingly digital world​.
Technological developments force us to upskill; otherwise, we might lose our jobs like pilot and cameraman.

How do we achieve effective upskilling?

These are some of my suggestions:

First, create strategies for upskilling. Identify the skill gaps that need filling and provide diverse learning opportunities through platforms offering online courses. Stay innovative by motivating your team to participate in job-related events and seminars.

Promote a learning culture by offering perks and benefits for learning and sharing knowledge. Skilled employees are the foundation of every successful business. By supporting our people to grow, we ensure our business grows.

If Darwin was alive today, he would have definitely said, “Only the most skilled survive.”

Let’s upskill together!

Article author: Lusine Arsenyan

DisruptHR Yerevan 2024