5 Benefits of Upskilling Employees

Between the pandemic, the ‘Great Resignation, the ‘Great Reshuffle’ and the ‘Great Stay’ the world of work has changed drastically in just the past few years. Finding quality employees with the right skills has become a serious challenge for employers. Meanwhile, many employees are seeking new opportunities, either because they want to take a new direction and establish a new work/life balance or workplace upheavals have displaced them.

Definition: Upskilling is the process of employees advancing their current skills and/or gaining new ones—has been in the spotlight as a solution that can help both workers and employers in the current environment.

Benefits of Upskilling

For companies, upskilling represents a more affordable and efficient way to close skills gaps through internal training, as well as a way to attract valuable new employees—and much more. Here are five benefits that organizations can realize by offering upskilling to their employees.

Increase Employee Retention

For workers, upskilling offers an opportunity to learn, grow, and advance their career and earnings. According to a recent Gallup study, more than half of workers say they are “extremely” or “very” interested in taking part in upskilling programs. In skill-intensive professional fields such as technology:

• 72 percent of employees say they are interested in upskilling.
• 71 percent of respondents say they are interested in paid training
• 65 percent say they prefer training that is provided during normal working hours

Employers that provide these opportunities solve some of the biggest blocks to upskilling—time and money—and provide real value to workers, while benefiting the company. Lack of advancement opportunities is one of the major reasons employees give for leaving their current jobs. Upskilling programs provide a powerful incentive to stay for the type of employee that companies want to keep.

Improve Profitability

When companies lose employees, they also lose money. It can cost an organization up to two times an employee’s annual salary to replace them, and U.S. businesses lose $1 trillion every year due to employee turnover. Employee exits can also have less obvious costs, including lowered productivity and damage to key relationships with customers and beyond. Employee losses take a mental toll on remaining staff members, often lowering team morale and increasing anxiety. Investing in upskilling programs to retain good employees now translates to lower costs and higher profits down the road.

Increase Productivity

As individual employees upgrade their skills and increase their capabilities and advancement options, companies benefit from the skills these employees put into practice. Not only that, but when employers invest in their employees with programs such as upskilling, workers feel that they are valued members of the team and that the company cares about their future. This environment leads to greater engagement and loyalty, both key to productivity.

Attract Top Talent

In a tight labor market, high-quality candidates have choices. Often, they are looking for more than just the right compensation. Other elements, such as a positive company culture and opportunities to advance, are important to high achievers as well. Companies that have established upskilling programs demonstrate their commitment to helping employees develop in their careers, as well as concern about workers’ job satisfaction and overall well-being. These are all important in developing a reputation as a company that values its employees and provides a great corporate environment and space for growth.

Close Skill Gaps

In order to stay competitive, organizations need people with the latest skills. Closing the gap between company needs and workforce skills is an important effort—and a constant one, given the pace of change. In a recent McKinsey study, most respondents said that “skill building (more than hiring, contracting, or redeploying employees) is the best way to close gaps, and that they have doubled down on their efforts to reskill or upskill employees since the pandemic began.”Upskilling programs also contribute to an overall culture of learning within the company. In this environment, employees are encouraged to learn and supported in doing so, helping them cultivate a growth mindset and foster innovation.

Building an Upskilling Program in 2025

Helping people grow in their roles is one of the most valuable things any organization can do. When employees have the chance to strengthen their skills and learn something new, it not only supports their personal development, but it helps the whole team thrive.

More than ever, skill-building is becoming essential for keeping people engaged, motivated and ready for what’s next. It’s about creating a work environment where learning is part of the culture, not just a once-a-year initiative.

Below is a guide that offers a simple, practical approach to building an upskilling program that fits your team, meets real needs and supports long-term success.

1. Assess your needs and set goals

Before launching any upskilling strategy, companies must first identify skills gaps within their teams. This can be done using skills gap analysis, employee assessments, performance reviews and feedback from managers.

Begin by asking:

• What skills employees need to support the company’s short and long-term goals?
• Where are the current skills gaps?
• Which roles are the most vulnerable to changes due to technological advancements?
• What career paths can we design to support career development and employee growth?

Clear goals ensure alignment between your training programs, business outcomes and employee aspirations. This step sets the foundation for career progression and future-focused workforce development.

2. Choose your development tactics and strategies

Now that you’ve assessed your needs, it’s time to build your development programs. These must be intentional, flexible and aligned with various learning styles. Below are several proven training initiatives:

 

Mentoring

Mentorship bridges the gap between soft skills and experience. With mentoring, employees can receive employee feedback, guidance and personalized coaching that helps them upskill efficiently. Mentoring also improves employee engagement and creates a culture of lifelong learning.

 

Job Shadowing

This immersive technique helps employees alike better understand other roles, departments or tools. It promotes collaboration, transferable skills and more agile thinking across teams. Ultimately, it creates a culture of curiosity and continuous learning that drives innovation.

 

Cross-Team Collaboration

Great for innovation and critical thinking skills, this method allows employees to work outside their departments. It encourages them to apply their existing skills in new contexts and uncover areas where they can gain new skills.

 

Courses and Workshops

Whether through online courses or in-person training, structured programs provide targeted skill building. Focus on courses that align with your business needs and equip your internal talent pool with advanced skills.

 

Conferences

Attending industry events offers exposure to trends, technology and professional development opportunities that encourage an agile workforce mindset.

 

Project-Based Learning

This method promotes real-time learning and allows employees to track progress on measurable outcomes. It also increases employee productivity and job performance.

 

3. Launch your program

A successful launch doesn’t happen by chance. it requires intentional planning, thoughtful communication and the right tools to drive engagement, maximize impact and ensure long-term success. Those tools can include these three factors listed below.

Encouraging employee participation

• Communicate the program’s purpose and benefits clearly.
• Involve current employees in shaping the program based on what they value most (e.g., mentorship, flexible hours or on the job training).
• Offer incentives and showcase success stories to keep people motivated.

Use the right tools

To simplify tracking and improve outcomes, use platforms like Chronus, which offers automated mentoring tools, reporting and AI-based matching. Other useful platforms include LMS (Learning Management System) tools like Coursera for Business or Udemy for Business.

Track and measure progress

Make sure your program is measurable from day one. Create clear KPIs and timelines for each employee. The ability to track progress and adapt is what makes a great upskilling initiative scalable.

 

4. Track and measure your progress

Measuring progress is essential to ensure your upskilling program is truly making an impact. It allows you to identify what’s working, what needs to improve and how well your efforts align with business goals.

Start by defining key performance indicators (KPIs) that reflect both individual growth and organizational outcomes. These might include:

• Course completion rates – to assess participation and follow-through
• Reduction in skills gaps – to ensure training is closing capability shortfalls
• Employee retention rates – to gauge the program’s influence on employee satisfaction and loyalty
• Increased employee engagement – a sign that people are motivated and invested in their growth
• Improvements in job performance – demonstrating that learning translates into real results
• Number of promotions or internal role changes – showing upward mobility and internal talent development

Recognize the signs of success that go beyond numbers, including:

• More satisfied, confident employees
• A positive shift in company culture
• Enhanced ability to adapt to business changes and demands
• Stronger, more constructive feedback from employees about their development journey

Finally, know when to pivot. If progress stalls or engagement drops, it’s time to reassess. Consider whether the tools being used are overly complex or if employees clearly understand how the program supports their career growth. Use both data and employee feedback to guide necessary changes and keep your upskilling initiative moving forward.

How Can Mentoring Help Upskill Employees?

Mentoring is an effective, personalized way to support employee skill development across many different phases of the employee journey. For example, mentors can help new employees with skills gaps during the onboarding process to help them get up to speed faster. For existing employees, mentors are instrumental in helping mentees identify talents and skills gaps and crystallize goals that can be realized with the help of upskilling. Mentoring relationships can also offer direct coaching—in one-to-one environments or in a group with other employees working on the same skills. Throughout the employee development journey, mentors are an important source of trusted feedback and encouragement that can make a real difference to employees in successfully upskilling.

Mentoring has also been proven to increase engagement among employees and helps develop positive relationships throughout an organization. These are key desires for employees wanting to stay with an organization and develop their skills there, rather than moving on to another company.

See the Benefits of Upskilling with Help from Chronus

Chronus can help your organization create and implement a successful, automated mentoring program that will help you realize your mentoring goals, including employee upskilling. Chronus’ mentoring software streamlines the process, offering built-in structure and eliminating manual tasks so administrators can focus on supporting effective mentoring. Matching is powered by AI so mentors and mentees can easily connect for upskilling sessions, according to what skills they can teach or want to learn. Analytical reporting empowers leaders to evaluate results and continuously improve the program for optimal impact to key organizational goals such as retention, advancement, satisfaction and social connectivity.

Find out how Chronus can help you reach your employee upskilling goals.

FAQ

What is upskilling?

Upskilling is the process of helping employees improve or acquire relevant skills to succeed in their current roles or future opportunities. It boosts job security, enhances career aspirations and prepares individuals for growth within their organization.

Upskilling vs Training

While traditional training programs may focus on onboarding or compliance, upskilling is continuous and strategic. It targets current employees, focusing on career development and preparing talent for shifts in job roles or technological advancements. Upskilling is a core component of building a learning culture and bridging skills gaps proactively.

What do employees want in an upskilling program?

Employees want training that fits into their day, feels relevant and actually helps them grow. A 2021 Gallup study found that most workers prefer on-the-job training during regular work hours, meaning traditional, one-size-fits-all approaches are no longer enough. Employees are seeking programs that:

Combine soft skills and technical development to help them thrive in evolving roles.
Provide clear pathways for career progression, giving them a vision for their future.
Offer supportive coaching and mentorship, which builds confidence and deeper engagement.
Include accessible formats like online courses, workshops and real-world application, allowing them to learn at their own pace and in relevant contexts.

What kind of ROI can you expect?

Investing in a strong upskilling program doesn’t just benefit employees, it delivers measurable returns for your business. According to LinkedIn’s Workplace Learning Report, organizations that prioritize upskilling see a wide range of positive outcomes, including:

• Higher employee retention – When people feel supported in their growth, they’re more likely to stay.
• Improved business outcomes – Upskilled employees perform better, contribute more and help drive results.
• Stronger company culture – Learning fosters engagement, collaboration and a shared sense of purpose.
• Faster identification of qualified talent – Internal mobility increases when you’re building skills from within.
• Better ability to close skills gaps – Companies that upskill from within are more agile and future-ready.

In short, the benefits of upskilling employees becomes an investment in your people and your bottom line.