What is Upskilling and reskilling?
Also called: Upskilling · Reskilling · Workforce skillingDefinition
Upskilling and reskilling are two forms of workforce development. Upskilling means teaching employees new or deeper skills so they perform better in their current role, for example a marketer learning to use generative AI tools. Reskilling means training employees for a different role, often because their existing work is changing or disappearing, for example moving a support agent into data quality work. Both aim to close skill gaps from inside the organisation rather than relying only on hiring.
Effective programmes start with a skills view of the workforce: which roles are changing, which skills those roles now need, and where each employee stands today. Upskilling usually runs alongside the job and targets specific tasks. Reskilling is a bigger investment, often combining structured learning, mentoring, supervised practice and a defined move into the new role.
The business case is that existing employees already know the company, its customers and its systems, so developing them can be faster and less disruptive than replacing them. Technology shifts such as generative AI have made upskilling a priority for most functions, from HR and finance to sales and engineering.
The commonest mistake is buying broad course libraries and counting enrolments as progress. Skills only change when learning is tied to the employee’s real work, practised with feedback and measured before and after. Reskilling also fails when there is no actual role waiting at the end.
Key points
- Upskilling: deeper skills for the current role.
- Reskilling: new skills for a different role.
- Start with a skills baseline and target roles.
- Tie learning to real work and measure change.
- Reskilling needs a defined destination role.
An example at work
A Kolkata-based insurer upskills its claims team in using AI to summarise case files, and separately reskills six data-entry staff into quality analysts through a twelve-week programme with mentoring.
Where this is used at Bodhih
Related terms
Learning and development
Learning and development (L&D) is the organisational function that builds employees’ skills and capabilities to meet business goals.
AI literacy
AI literacy is the ability to understand what AI can and cannot do, use it effectively and safely, and judge the quality of its output.
Training needs analysis
Training needs analysis (TNA) is the process of identifying the gap between the skills people have and the skills they need, and whether training can close it.
Competency framework
A competency framework is a structured set of the skills, knowledge and behaviours an organisation needs, each defined with observable levels of proficiency.
Learning pathway
A learning pathway is a planned sequence of learning activities and assessments that takes a learner from a starting level to a defined, measurable outcome.
More about Upskilling and reskilling
What is the difference between upskilling and reskilling?
Upskilling improves or extends skills an employee needs in their current job. Reskilling trains them for a different job. A finance analyst learning AI-assisted forecasting is upskilling; a branch cashier retrained as a customer data analyst is reskilling. Both close skill gaps from within the workforce.
How do companies upskill employees in AI?
Start with the tasks in each role where AI helps, measure current capability, then run role-specific training with practice on real work and clear rules on acceptable use. Assess the result with work products or an exam, and re-measure after a few months to confirm the skill is being used.