What’s the difference between Upskilling vs. Reskilling?

What is reskilling?

Reskilling is the process of acquiring entirely new skills to transition into a different job or career path. Rather than focusing on expanding existing skills, reskilling is about preparing for a new role within the same company or in a different field altogether.

Reskilling allows individuals to pivot their careers, often in response to changing industry needs or shifts in personal goals.

Benefits of reskilling in a changing job market

• Enables career transitions. Reskilling helps workers adapt to changing roles, providing the tools needed to switch to a different job or industry.
• Fulfills business needs. As markets and business models change, reskilling allows employees to meet business needs, helping organizations remain agile in a competitive landscape.
• Increases job security. Reskilling empowers individuals to adapt their career paths, giving them skills that are often more resilient to industry disruptions, automation, or job displacement.

Real-world examples of reskilling

• Transitioning from administrative work to digital marketing. Workers may gain skills in social media, content management, and SEO to transition into the marketing field.
• Moving from technical roles to customer-facing positions. Developing soft skills like communication and empathy allows individuals to effectively engage with clients.
• Switching to project management. By gaining skills in budgeting, time management, and strategic planning, employees can shift to roles focused on overseeing projects and teams.

Reskilling provides flexibility and adaptability, enabling both individuals and organizations to stay relevant in a world where business demands and job roles continually evolve.

Key differences between upskilling and reskilling

While both strategies focus on employee development, they serve different purposes and have distinct outcomes. Upskilling is about getting better at what you already do, while reskilling prepares you for an entirely new job. Knowing when to pursue each approach depends on your career goals and the specific needs of the organization.

Both upskilling and reskilling provide valuable strategies for adapting to technological advancements and shifting market needs.

How to choose between upskilling and reskilling

Deciding between upskilling and reskilling depends on career aspirations and industry trends. Here’s how to determine the best fit:

• If you’re seeking growth in your current field. Upskilling is the ideal approach for advancing within your current role or industry.
• If you’re looking to switch careers. Reskilling is more suited for those seeking to transition to a different role, as it provides the new skills needed for a career shift.

Consider your career goals, current skill set, and the market demands in your field. An understanding of these factors can guide you in choosing the most beneficial path.

Why is upskilling and reskilling essential?

In a world of constant change, both upskilling and reskilling have become indispensable. These strategies help employees adapt to new roles, meet career goals, and stay competitive in a dynamic job market.

They also contribute to an organization’s bottom line by fostering a culture of continuous learning and helping businesses meet emerging needs without extensive hiring.

Advantages for employees

• Career growth. Gaining new skills contributes to professional development, allowing workers to remain competitive in their current roles or prepare for new opportunities.
• Job satisfaction. Learning new things adds value to work, creating a more satisfying experience and supporting long-term career engagement.
• Career resilience.Continuous learning enables workers to meet evolving industry demands, helping them to pivot when necessary to maintain job security.

Advantages for employers

• Increased profitability. Upskilled and reskilled employees contribute to business efficiency and innovation, improving overall profitability.
• Employee retention. Investing in learning opportunities shows employees they are valued, helping to reduce turnover and maintain a strong workforce.
• Enhanced talent development. By reskilling and upskilling employees, organizations can quickly fill skill gaps without having to rely solely on external hires.

Upskilling and reskilling are more than just workforce development — they’re essential for career sustainability in an environment that demands ongoing adaptation.

Impact of technological advancements on skills development

Automation and artificial intelligence are reshaping job requirements, creating a pressing need for skill development.

According to the World Economic Forum, many roles are undergoing significant changes, with automation replacing repetitive tasks across industries from finance to logistics. As new technologies emerge, professionals must adapt by focusing on technical skills and competencies that go beyond routine tasks.

This shift emphasizes the importance of both upskilling and reskilling. Employees who focus on upskilling can leverage automation to improve their current jobs, while those reskilling can move into areas less impacted by automation. This dual approach helps companies and workers alike prepare for the future.

Job replacement

Artificial intelligence is transforming industries by automating tasks once performed by humans. This shift has already led to job displacement in certain sectors.

Research from HBR highlights that industries like manufacturing, retail, and data processing have experienced significant changes as AI replaces repetitive tasks. Understanding which roles are most susceptible to automation helps workers and businesses proactively adapt to these changes.

Job creation

While AI may eliminate some roles, it’s also creating new opportunities. Many emerging positions revolve around managing, deploying, and optimizing AI systems. This trend emphasizes the need for reskilling workers to transition into these future-ready roles.

Examples include data analysts, AI trainers, and machine learning engineers. Investing in education and training programs can help bridge the gap and provide workers with the tools to thrive in an AI-driven economy.

Skills development

Automation and AI are reshaping the skills professionals need to stay competitive. According to the World Economic Forum, automation is replacing repetitive tasks across industries like finance, logistics, and even healthcare.

However, this also creates opportunities for upskilling—improving existing skills to work alongside AI—and reskilling—developing new skills to shift into less impacted areas.

• Upskilling enables workers to enhance their current roles by leveraging AI for increased efficiency.
• 1’Reskilling helps individuals transition into sectors with more security against automation.

The dual strategy of upskilling and reskilling can help both businesses and employees adapt to AI-driven changes. Organizations that support workforce development through training programs will likely maintain a competitive edge, while workers who invest in their skills will be better positioned to navigate this evolving landscape.

Implementing upskilling and reskilling initiatives in organizations

For companies looking to stay competitive, integrating skills development into talent management strategies is essential. Here are some effective steps to consider:

Identify skill gaps

Assess the skills currently lacking within your organization and determine which areas need the most attention. This analysis can help focus resources where they are needed most.

Example: Leadership skills are often overlooked but are vital for navigating change. Programs like IMD’s leadership courses provide tailored training in areas such as emotional intelligence, self-awareness, and cultural competence, equipping leaders to address organizational challenges effectively.

Customize learning experiences

Offer training programs that align with both individual career goals and the company’s objectives. Personalization boosts employee engagement and ensures better outcomes.

Example: Mentorship programs are an effective way to customize learning journeys. Pairing employees with experienced mentors allows for targeted guidance and support, helping individuals focus on skill areas that align with their ambitions and the organization’s goals.

Provide training to employees

Access to tailored training programs is key to equipping employees with new skills. Both in-person and online options can be used to ensure flexibility.

Example: Custom programs from IMD can address specific organizational needs, from technical training to soft skill development. These programs allow companies to design a curriculum that matches their workforce’s requirements while supporting long-term business goals.

Looking ahead: Building a future with upskilling and reskilling

In the face of rapid industry changes, upskilling and reskilling are key for long-term career development. Both approaches allow individuals to stay relevant and adaptable, equipped with the knowledge and skills to meet evolving demands.

Continuous learning is essential for staying relevant in a constantly changing job market. Embracing ongoing professional development enables individuals to adapt to industry changes, acquire new skills, and achieve their career goals. Whether through mentoring, technical training, or online platforms, continuous learning builds adaptability and resilience.

For organizations, supporting continuous learning encourages employees to grow within their roles and prepare for future responsibilities, creating a workforce ready to meet changing demands.

If you are ready to embrace this, IMD offers the “Future Leaders” program, designed to help professionals gain the skills they need to succeed. Our learning journeys empower participants with the tools needed to navigate a future driven by technology and change, supporting a career that’s both adaptable and fulfilling.