How to Bridge the Skills Gap: Upskilling and Reskilling Your Workforce.

Are the skills your organization needs changing faster than you can hire? You’re not imagining it. Surveys indicate that 63% of employers view skills gaps as the primary barrier to business transformation in the coming years. 

At what point did you realize that the skills of your workers are not sufficient for the next milestone in the company? It’s a sinking feeling. It comes with a lot of urgency, uncertainty, and pressure. 

The good news is you’re not alone, and there’s a way forward: investing in upskilling and reskilling today to future‑proof your workforce for tomorrow.

What is Upskilling and Reskilling?

In simple terms, upskilling means helping your employees deepen or advance their current skills (for example, a marketer learning advanced analytics).

Reskilling means teaching them an entirely new set of skills for a different role (imagine that same marketer learning coding to transition into a tech role)

In a world where new technologies and business models emerge overnight, both strategies are crucial. In fact, half of all employees globally were projected to need reskilling by 2025 as technology adoption accelerates.  

Upskilling and reskilling are about empowering your people and securing your company’s continued success. It can transform that sinking feeling into confidence. Let’s talk about how you can make it happen in a way that addresses real workplace pain points and delivers tangible results for you and your team.

That future is now here and now. Companies that act on these needs are pulling ahead of those that don’t. 

Upskilling and Reskilling the Workforce Beats Constant Hiring

At this point, you might be thinking: “This sounds great for employees, but how about the cost. Is this even realistic?” 

Thankfully, the case practically makes itself. Developing your current employees often outperforms the hire-and-fire cycle on every metric that matters, from cost savings to productivity to retention. Here are practical examples:

•  Amazon invested $700M to retrain 100,000 employees in digital and technical skills. This upskilling initiative allowed them to stay ahead in automation and AI deployment without excessive hiring. This shows that internal talent development can beat external recruitment.
• The 2025 SHRM report shows that training internal talent saves money over recruiting. Instead of spending $20k to recruit a senior data analyst, a company invested $5k to reskill an existing finance analyst. 

Why internal development works

• It’s cheaper than hiring externally
• Employees already understand your systems and culture
• Productivity ramps faster after training
• Retention improves when people see growth paths

This is where platforms like Perkflow become powerful. They help reinforce learning by tying growth, recognition, and performance together instead of treating training as a one-off event.

How to Decide Between Upskilling vs. Reskilling (Without Guessing)

“Will my team’s skills be relevant next year? In five years?” Most leaders ask this. The truth is, with the pace of change in today’s workplace, you should be concerned about this. 

According to the World Economic Forum, around 40% of workers’ core skills will change due to technology shifts. By the end of this decade, as many as 85 million jobs may be displaced by automation, but an even larger number (97 million) of new roles could emerge.

However, not every skills gap needs reskilling. Not every role needs to be reinvented. The key is knowing when to deepen skills and when to pivot roles.

Use this simple guide

• Upskill when the role still exists but requires new tools or deeper expertise
• Reskill when the role is shrinking, automating, or becoming obsolete
• Prioritize employees who show adaptability and motivation
• Align learning paths with future business goals, not current job titles

This prevents wasted training spend and keeps learning aligned with real outcomes.

Worried Your Team Might Leave After Training? Here’s How to Make Upskilling Stick

This fear is valid and common. But you need to know training doesn’t fail in the classroom, it fails in the weeks after. People don’t usually leave because you trained them.
They leave because you didn’t give them a reason to stay afterward. Upskilling without a retention strategy is where organizations go wrong.

How to reduce post-training attrition

• Link training to visible career pathways
• Apply new skills immediately through projects or role changes
• Recognize learning progress publicly and consistently
• Prioritize current employees for new roles before hiring externally
• Tie development to performance reviews and growth conversations
• Schedule post-training check-ins at 30, 60, and 90 days
• Assign mentors or learning buddies
• Track skill application, not just course completion
• Celebrate early wins from newly learned skills

Learning sticks when people feel seen, supported, and rewarded for using it.

If you want learning to translate into engagement and retention, explore how Perkflow connects performance, recognition, and growth in one system.

Your Downloadable Workforce Upskilling & Reskilling Template (Ready to Use)

“Where do I actually start, and how do I keep track of all this?” We’ve got you covered. We’ve created a ready-to-use Upskilling & Reskilling Planning Template below 

(https://perkflowupskillreskilltemplate.tiiny.site)

Key Takeaway

If there’s one thing to remember from this article, it’s this: seeing your people not as they are today, but as what they could become tomorrow with the right support. As a leader, you should have the ability to spark growth.

The next time you catch yourself worrying about a looming skill gap or a fast-changing project, pause and reframe the problem: instead of asking,

“Where can we find new people with X skill?”, ask 

“How can we help our current team learn X skill?”

Starting today, consider doing the following steps:

• Audit one team’s skills this week
• Identify one internal growth path
• Recognize one learning effort publicly
• Connect learning to performance conversations

Upskilling and reskilling the workforce isn’t about creating perfect employees.

It’s about building adaptable people who grow with your organization, not away from it. This is why adaptability should be one of your key qualities when hiring. 

If you want learning to translate into retention, engagement, and performance, explore how Perkflow supports growth-driven cultures that actually last.