How To Upskill Employees: A Step-by-Step Guide

Many existing employee skills are losing relevance today—especially as automation and artificial intelligence (AI) reshape the future of work. At the same time, industries face widespread talent shortages, making it even harder for teams to keep up. That’s why human skills like critical thinking, creativity, and adaptability are more essential than ever—and why this decade is shaping up to be a transformative era of learning and growth.

Fortunately, employees—especially younger generations with long careers ahead—are eager to learn. And recognizing the value of upskilling, forward-thinking employers are investing in professional development to future-proof their teams.

Read on to explore why upskilling is essential for both your employees and your business and discover strategies to build effective growth initiatives that deliver long-term results.

What Is Employee Upskilling?

Upskilling is a powerful practice that helps employees grow while closing critical skill gaps. This involves targeted employee training and development opportunities that equip teams to thrive in their current roles and explore new career paths within the organization. At its core, an upskilling program fuels continuous learning, empowering team members to sharpen their skills, boost performance, and unlock future growth.

Upskilling vs. Reskilling

Unlike upskilling, reskilling refers to teaching employees entirely new skills that fall outside their current expertise. These employee skills are often related to—but not directly part of—their existing role, and in some cases, they prepare team members for a completely different career path.

The key difference lies in the outcome. Upskilling helps employees grow within their current roles, following a linear development path. Reskilling, on the other hand, involves a lateral shift, equipping employees to step into new positions altogether. While they serve distinct purposes, both are essential for talent growth.

Why Are Business Leaders Prioritizing Upskilling Efforts?

Business leaders and HR professionals are doubling down on upskilling—and for good reason. With technology evolving at lightning speed and AI transforming workflows, the skills employees once relied on are losing relevance fast. At the same time, companies across industries are struggling to find talent with the specialized skills they need, making it harder to hire their way out of the problem. In fact, employers believe that 44% of workers' skills will be disrupted in the next five years and that 6 out of 10 employees will need training before 2027, according to the World Economic Forum (WEF).

Upskilling presents a strategic solution, enabling businesses to expand capabilities and invest in their existing workforce. While employees gain valuable growth opportunities—boosting engagement and job satisfaction—companies strengthen resilience and employee retention. Plus, a culture of continuous learning and innovation helps team members stay confident in adapting to new technologies and evolving business needs.

5 Essential Steps for Upskilling Your Team

Springboard for Business reports that 70% of corporate leaders have identified a critical skills gap in-house—one that’s hurting business performance. However, the particular expertise that’s lacking can differ based on the industry and the roles within the organization.

So, how can your company address this gap and strengthen the capabilities that align with your unique goals? Here are five key steps for effective employee upskilling:

Step 1: Conduct a Skills Gap Analysis

Start by understanding where your employees’ competencies are falling short with a skills gap analysis. This helps you pinpoint the exact areas that need attention so your training efforts can be more targeted and effective. A tailored approach to employee development ensures you’re focusing on the areas that will have the biggest impact on individual growth and company performance.

Best Practice: Conduct surveys or interviews with employees to identify pain points or missing skills. You can also use skill assessments to get an accurate picture of where each employee stands. Review current job descriptions and compare them with industry standards to see where improvements are needed.

Step 2: Define Measurable Objectives

Once you’ve identified areas for improvement, define clear and measurable outcomes that reflect both employee development and broader business goals. Giving employees a roadmap to success keeps teams focused and motivated. It also helps HR professionals track progress to ensure each upskilling initiative is paying off.

Best Practice: Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) for your upskilling efforts and make sure objectives are both short-term and long-term. For maximum impact, be sure to align your training goals with the company’s overall mission and vision.

Step 3: Choose the Right Training Methods

The training methods you choose should cater to employee learning preferences and overarching business objectives. Whether it’s online courses, live webinars, or hands-on workshops, pick the approach that maximizes your employee engagement and knowledge retention. That way, team members can apply learning in a way that benefits their career and your bottom line.

Best Practice: Offer a combination of learning formats, including online self-paced courses for flexibility, live workshops for interactivity, and peer-to-peer learning for collaboration. Incorporating real-world scenarios and simulations can also provide valuable hands-on experience. Mobile-friendly platforms or virtual learning environments support training accessibility, especially for remote teams.

Step 4: Integrate Upskilling Into the Company Culture

Upskilling shouldn't feel like a one-time event—it should be woven into the fabric of your company culture. When learning is an ongoing part of the company experience, employees will see it as a valuable upskilling opportunity rather than just another task. This not only boosts employee engagement but promotes a growth mindset that makes your company more agile in the long run.

Best Practice: Establish regular check-ins with team members to discuss the learning opportunities that are available to them. You can also provide recognition and incentives for employees who actively engage in learning, making upskilling something to be proud of.

Step 5: Track and Measure Success

Tracking the results of your upskilling initiatives is essential to understanding how well your efforts are working. Measuring progress gives you the data insights to fine-tune your approach, help employees meet their development goals, and ensure your investment in training yields a strong return.

Best Practice: Use KPIs such as performance improvements, employee productivity boosts, and job satisfaction levels to measure success. At the same time, gather employee feedback on how training has impacted their roles. Leverage insights to adjust your programs and progress reports as needed.

The Barriers to Effective Employee Upskilling

An effective upskilling program can be the missing link to improved performance. Yet, a study by Gallup and Workhuman reveals that only 26% of U.S. employees strongly agree that their employer encourages them to learn new skills. With most of the workforce needing better upskilling opportunities, what's holding employers back from addressing these needs?

Let’s take a closer look at the barriers to employee upskilling today:

• Budget and Time Constraints: Tight budgets and limited timelines make it difficult to implement upskilling initiatives without sacrificing quality. This often leads to rushed or underfunded programs that fail to fully equip teams for success.

• Resistance to Change: Employees may resist learning if they view it as an additional burden rather than a valuable upskilling opportunity. This resistance can result in disengagement, missed learning opportunities, and a stagnant workforce that fails to adapt to new demands and technologies.

• Lack of Personalization: Generic training programs don’t account for employees' diverse needs and learning styles. Without tailored approaches, team members may not learn or retain relevant skills, leading to a lack of motivation and less effective results.

• Difficulty Measuring ROI: Without clear metrics or tracking methods to measure success, it's difficult to justify continued investment in employee growth initiatives.

• Limited Internal Expertise: When internal resources lack the specialized knowledge needed for effective training, upskilling efforts can be ineffective or inadequate. This gap can lead to further skill shortages and limited business growth.

• Rapid Technological Advancement: With technology constantly evolving, upskilling programs can quickly become obsolete. Failing to keep training content up to date can result in employees lacking the necessary skills to keep pace with industry changes.

To make upskilling efforts truly pay off, focus on tailored, goal-driven learning opportunities with clear outcomes tied to your business objectives. Communication is also key—employees need to understand why upskilling matters and how it benefits them. And if in-house resources fall short, turning to external experts and trusted training solutions can help you fill the gap.

It’s natural to worry that upskilling top talent might make them more marketable to competitors, but research from Gallup shows that employees are more likely to learn new skills to boost their current job performance rather than jump ship. In fact, the right upskilling programs make your workforce stronger and more likely to stick around. PwC found that 93% of business leaders who champion upskilling see a boost in productivity, better talent acquisition and employee retention, and a more resilient team overall.

Best Practices for Upskilling Employees

As you implement development initiatives to address growth barriers and meet employees' unique needs, consider the following best practices:

Ensure Personalized Employee Growth

Tailoring development programs to individual learning styles and career goals makes training more relevant and engaging. You can use surveys or one-on-one check-ins to understand your employees’ learning preferences and career aspirations, then design programs that speak directly to their needs.

Leverage Digital Tools and AI

Digital tools can help you streamline training by offering employees on-demand access to resources, real-time feedback, and personalized learning paths. Integrate AI-powered platforms that adapt to individual progress, delivering content suited to each employee’s unique needs and skill level.

Incorporate Reskilling Initiatives

Stay ahead of market trends and create training opportunities that help employees develop the skills needed for future roles and evolving business needs. This prepares your workforce to add ongoing value to the organization.

Focus on Today’s Top Skills

Soft skills are just as important—if not more so—than technical skills, making it essential to prioritize both. According to the WEF, some of the top focus areas for teams today include analytical and creative thinking, resilience, flexibility, motivation, self-awareness, and lifelong learning.

How ACI Learning Supports Employee Upskilling

As your organization adapts to change, focusing on upskilling is key to staying competitive. And by promoting continuous learning and offering targeted upskilling programs, you can strengthen your workforce and keep your business ahead in innovation and growth.

ACI Learning can help you elevate your team's skills with personalized, expert-led training through myACI Learn. The platform offers a dynamic e-learning experience tailored to your team's needs, whether you're in the office or working remotely. Hands-on labs, real-time tracking, and AI-powered tools help your workforce stay motivated and on track.

Looking to boost your training strategy? Learn more about myACI Learn or schedule a demo to get started!