7 reasons to invest in employee upskilling (+ tips to get started)

Training is often one of the first things to go when times get tough. Budgets get tight. Teams are expected to do more with less. And cutting back on training can seem like an obvious short-term move.

But here’s the problem: reducing investment in employee development, especially on the frontline, comes with long-term costs. Lower engagement. Bigger skill gaps. Missed opportunities to improve performance when it matters most.

Even with tight labor budgets and scaled-back training resources, ongoing upskilling remains one of the smartest, most strategic investments you can make.

Here are 7 reasons why:

1. Close critical skill gaps 

There’s always something new happening—new tools, new products, new processes. As work evolves, so do employee expectations. People want to feel capable and confident in their roles, especially when the ground keeps shifting. 

Continuous upskilling helps your team keep pace. It also reduces the need to hire external specialists by giving employees the tools to take on new responsibilities without leaving their comfort zone.

Example: A grocery store introduces self-checkout as part of an ongoing digital transformation initiative. Rather than leave the transition to chance, the operation upskills existing cashiers to monitor the new kiosks. This ensures employees have the knowledge and confidence to support a new working model, leading to smoother adoption, fewer customer issues and less risk to the business.

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2. Improve retention and engagement

Frontline turnover is expensive—and often avoidable. An unfortunate number of people leave because they don’t see a path forward. Upskilling shows you’re interested in employees’ growth (not just their output)

Some employees are here just to collect a paycheck, and that’s fine. Others want a chance to build their knowledge and skill so they can seek a career—here or somewhere else. Upskilling keeps this opportunity at the forefront. 

Example: A contact center agent is offered upskilling in advanced problem-solving. This helps them navigate tough customer calls more effectively while also opening doors to future roles that require this skill. 

3. Increase agility 

Frontline teams live in a world of constant change—shift swaps, callouts, broken equipment, etc. On top of all that, customer expectations and business priorities can shift day to day.

Upskilling gives your team the flexibility to respond to change in real time. When employees are prepared to take on new tasks, you don’t have to scramble every time something unexpected happens.

Example: An experienced hotel housekeeper is upskilled to manage the team’s daily workload. When the supervisor calls out, she’s ready to step in and keep the operation running smoothly.

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4. Boost productivity 

When you give people the tools to do their jobs better, they usually do their jobs better. Too many training programs stop after onboarding, leaving employees to figure things out on their own. Upskilling shifts the focus to continuous development, helping people grow with the job instead of just learning the basics upfront.

Upskilled employees are more efficient, make fewer mistakes and contribute more to the operation. With targeted training, you can build the kind of capability that used to take years of experience in a lot less time.

Example: After six months on the job, a warehouse worker receives targeted upskilling on how to optimize their picking route and packing process. With just a few adjustments, they speed up order fulfillment, reduce mis-picks and improve overall efficiency on the floor.

5. Attract talent

There’s a reason companies highlight training programs in their job ads. Many frontline employees are looking for more than a paycheck. They want a place where they can grow.

Upskilling shows that your organization invests in people at every stage—not just those on a management track or with decades of service. When development is available from day one, it becomes a reason to choose you over the competition.

Example: A new fast food worker decides to take the job because the role includes English language training. It’s helpful on the job and makes a difference in their everyday life.

6. Enable transformation

Change doesn’t stick unless people evolve along with it. As technology, especially AI, reshapes how work gets done, companies need their frontline teams to keep pace.

Upskilling creates the bridge between transformation and execution. It builds the knowledge and confidence employees need to adopt new tools and processes while helping shift behaviors that can accelerate change across the business.

Example: A retailer is moving from traditional checkout to mobile checkout using handheld devices. By upskilling store associates before the rollout, the company ensures a smoother transition. Employees are prepared, customers aren’t confused and the new model can take hold faster with less friction.

7. Strengthen resilience 

Things don’t always go as planned, especially on the frontline. Labor shortages, weather emergencies and market disruptions can throw a wrench into even the best strategies. But teams that are equipped to adapt can keep moving forward.

Upskilling builds this capability. When employees know how to take initiative, solve problems and adjust in real time, your organization becomes more flexible, responsive, and resilient, no matter what comes your way.

Example: A field service technician is upskilled to use drones to inspect power lines after severe storms. Instead of waiting for backup or putting themselves at risk, they can safely assess the damage and take the right next steps, accelerating resolution and avoiding extra delays in service restoration.

What upskilling can do for your business

Upskilling isn’t just good for employees—it’s good for business. It improves retention, boosts engagement and helps your workforce adapt faster.

It’s often more cost-effective to develop skills in-house than to recruit externally. And the strongest programs meet employees where they are, offering training that’s accessible, relevant, and tied to clear growth paths.

The takeaway? Upskilling isn’t a nice-to-have anymore—it’s how you future-proof your workforce.

How to get started with upskilling

You don’t need a complete learning overhaul to launch an effective upskilling program. The key is to start small, stay consistent and tie learning to real outcomes—both for individuals and the business.

Here’s how to make it work:

1. Start with a skills gap audit

According to the World Economic Forum, 44% of workers’ core skills are expected to change by 2027. That means nearly half the workforce will need to build new skills to stay effective in their current roles—or prepare for entirely new challenges. The fastest-growing skill areas are analytical thinking, creative thinking and tech literacy. 

These shifts reflect the growing demand for problem-solvers who can adapt to technological advancements and ongoing digital transformation. If your team isn’t getting the training opportunities they need, you risk falling behind, especially as companies continue to invest in upskilling programs to boost employee performance, close skills gaps and improve retention.

Before you introduce any training programs, you need to know where the gaps are. Identify the competencies your team members already have, and map out the new skills they’ll need to meet today’s business needs and future digital transformation initiatives.

Use assessments, manager input, and operational data to evaluate your team’s current skills against the requirements of their current role and future career path. This helps you prioritize where to invest and who needs support first.

▶️ The complete guide to skill development: How to drive growth at scale

2. Make learning accessible and relevant

Traditional training often fails frontline workers because it’s long, one-size-fits-all, and hard to access. Instead, create training opportunities that fit into the flow of work.

Bite-sized e-learning, mobile-first platforms and just-in-time resources help learners absorb and apply knowledge quickly—whether they’re new employees in onboarding or current employees brushing up on soft skills like communication or time management.

3. Connect learning to growth and opportunity

People are more motivated to learn when they see a clear benefit. Make sure your upskilling initiatives are tied to real development opportunities, such as internal promotions, new responsibilities or visible performance outcomes.

According to the 2025 LinkedIn Learning Report, organizations that invest in career development and internal mobility are more likely to retain employees and foster higher engagement levels. Companies that prioritize career growth and leadership training see a greater flow of critical skills across the workforce, helping them remain adaptable and responsive to business needs. Upskilling is not just about capability—it’s a key lever for improving job satisfaction, employee performance and overall retention.

Highlight success stories—like team members who used professional development to move from frontline roles to leadership. Offer mentoring or peer coaching to reinforce learning in a real-world context.

4. Use data to drive and improve your strategy

Set clear goals for your upskilling programs and track metrics like engagement, course completion, promotion rates and performance changes. This helps you see what’s working—and where to iterate.

Don’t just focus on the bottom line. Monitor improvements in employee engagement, adaptability, and readiness for new challenges brought on by technological advancements or shifting job market dynamics.

Metrics tied to business impact (e.g., reduced training time, increased retention rates, higher output) will help you secure ongoing buy-in for your employee development strategy.

💡 Manager tip: Your support is crucial. Whether it’s encouraging learning during shifts or recognizing someone who earned a certification, the way you reinforce growth makes all the difference. Show your team that continuous learning isn’t a chore—it’s part of the job.

▶️ How to support managers: Instilling confidence to overcome frontline challenges

Upskilling doesn’t have to be disruptive

It’s not always easy to make the case for upskilling, especially when time is tight and budgets are stretched. But you don’t need to pull employees off the floor for hours or squeeze in extra training shifts to foster continuous development.

Targeted upskilling can happen in just a few minutes a day. When you deliver small, focused bursts of information over time, you build on what people already know without disrupting the work.

This is how people learn anyway: little by little, in the flow of what they do. Short-form videos, on-demand resources and microlearning make it easy to fit development into the time frontline employees have, perhaps right after clocking in, between calls or during a slower moment on the floor.

Giving people the chance to grow is a win-win. They get better at their jobs. You get a stronger, more agile business.