Upskilling strategies for a high-performing workforce

In a business landscape where necessary skills are changing at a rapid pace, helping your employees’ skills stay current is key to long-term individual and organizational success. Companies that invest in skill building can harness this disruption to build a competitive advantage and attract some of the 78 million new jobs expected to be created in the next few years.

The labor market is undergoing a transformation. By 2030:

• 170 million new jobs will be created.
• 92 million workers will be displaced.
• 39% of workers’ core skills will be outdated in the next five years.
• 63% of employers identify the skills gap as a barrier to business growth.

As employers look to close skills gaps and be more effective, three main forces are driving changing skill requirements:

1. 86% of employers point to AI and information processing as change agents.
2. 60% believe broadening digital access is fostering transformation.
3. 58% perceive robotics and autonomous systems to be having an impact.

Driven by demand for AI and computing skills, the following occupations are projected to see some of the largest increases in demand between 2024 and 2034:

Data science: 33.5%

Data science and analysis knowledge are anticipated to be in greater demand due to the increasing amount of AI-generated information.

Information security: 28.5%

The rising frequency and costs associated with cyberattacks and data breaches are driving up demand for data security skills.

Computer and information research: 19.7%

Continued training of AI platforms requires advanced computing expertise.

Source: Bureau of Labor Statistics, Industry and Occupational Employment Predictions, 2026 

Percentage of employees who have already completed some retraining is increasing:

• 2025: 50%
• 2023: 41%

What are the best ways to approach upskilling? Four methods include:

On-the-job training. This method allows workers to contribute to the organization as they learn. It is also cost-effective, helping employees acquire skills they need through hands-on learning that also boosts retention. An estimated 29 out of 100 workers can be upskilled in their current roles. This approach is a good starting point.

Peer mentorship. Mentors and mentees benefit from opportunities to share knowledge, building leadership and soft skills that reduce attrition and enhance organizational culture. The Departments of Labor, Commerce and Education have set a target of establishing 1 million Registered Apprentice program participants to foster more formal mentoring arrangements.

Microlearning. Breaking down training into short modules, often combined with gamification, is more appealing to employees and may lead to higher information retention by building on previous lessons.

External partnerships with providers. Outsourcing specialized training to external partners reduces the demands placed on human resource staff and provides flexibility to bring in experts as required. This approach could provide a gateway to candidates or assist existing workers in upskilling to remain competitive.

70% of employers expect to hire employees with new skills.

With 59% of employees expected to require future reskilling or upskilling, organizations will need to invest in training. However, to hold on to those retrained workers, new retention strategies will be essential. These include:

• Rating skill development on performance appraisals
• Tying upskilling directly to career progression
• Creating a culture of continuous learning    
• Providing employee education reimbursements
• Profiling retrained employees as success stories

These actions can help your business create a plan to ensure that employees are able to sharpen their skills to keep pace with today’s rapid changes.