Article Summary
How the benefits of employee upskilling are now seen as a competitive advantage in 2025.
How to create a culture of continuous learning that boosts engagement and internal mobility.
- Practical ways HR can align development with individual potential and strategic business needs.
As technological change accelerates, the need for continuous upskilling has become essential for organisations looking to retain top talent, drive performance and strengthen resilience. According to the World Economic Forum 50% of all employees will require reskilling by the end of this year as new technology reshapes the skills landscape.1 This seismic shift demonstrates that upskilling is no longer a ‘nice to have’ but a critical benefit for employees and a strategic imperative for businesses.
Forward-thinking organisations have already recognised the value of investing in learning and development. Logistics company DHL has made a significant commitment to upskilling, connecting its 160,000 employees with targeted training and internal mobility opportunities through a platform known as Career Marketplace. The platform uses a skills taxonomy, covering areas like customer service, coding, negotiation and leadership, which employees help to create by identifying their current abilities. These skills are then matched with open jobs and training programmes through AI-powered tools. This approach not only equips employees with in-demand skills but also empowers them to take control of their career development within the company.
DHL chief human resources officer Thomas Ogilvie says it expects that most qualified employees will be using the platform by the middle of 2025 and he highlights the strategic importance of this investment. “For those who are at the beginning of their career, this is a very compelling service offering,” he told Fortune magazine.2
The evidence supporting upskilling’s impact is compelling. Research published in the Journal of Workplace Learning shows a strong positive correlation between perceived learning opportunities and employees’ intent to stay, as well as their overall performance. When employees see growth and development as part of their role they are more engaged, productive and loyal to their organisation.3
Why upskilling matters in 2025
The workplace of 2025 will be defined by disruption. Emerging technologies, AI adoption and automation are transforming roles at every level, creating an urgent need for employees to acquire new skills. While this change presents challenges it also creates opportunities for organisations to position the benefits of employee upskilling.
Upskilling is a win for both the organisation and the employee. In today’s competitive job market employees increasingly value opportunities for growth and development. This is particularly true for millennials – those born between 1981 and 1996 – who now make up the largest segment of the workforce. Research last year highlighted that millennials prioritise continuous learning, career growth and meaningful work experiences. They are more likely to stay with organisations that offer tailored talent management strategies, such as flexible learning opportunities, structured feedback and clear pathways for development.4
But upskilling is not just about retention. As employees worry about being replaced by technology, further impacting morale and engagement, upskilling can help alleviate job insecurity by enabling them to transition into new, in-demand roles. Deloitte’s Global Millennial and Gen Z Survey finds nearly six in ten Gen Zs (59%) and just over half of millennials (52%) believe the prevalence of GenAI will make them look for job opportunities that are less vulnerable to automation, such as skilled trades or manual labour. Both generations are focused on reskilling and training, says the report. However, only about half of Gen Zs (51%) and millennials (45%) say that their employer is sufficiently training them on the capabilities, benefits and value of GenAI.5
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Organisations that fail to offer upskilling and career progression therefore risk losing such younger talent to competitors. Upskilling programmes signal investment in employees’ futures, not only improving skill sets but fostering engagement and increasing retention in a demographic that craves growth opportunities.
Meanwhile, with labour markets still tight, despite economic uncertainties, and skills shortages persisting in sectors like tech, logistics, healthcare and engineering, organisations cannot rely solely on recruitment to meet their talent needs. Upskilling existing employees becomes a cost-effective way to bridge skill gaps, reduce hiring pressures and strengthen internal pipelines.
Investing in upskilling can also improve productivity and efficiency without relying solely on expanding headcount. It also reduces turnover costs, which, as research from SHRM highlights, can amount to three to four times the salary of a role. Upskilling therefore delivers long-term returns by enhancing performance and reducing reliance on costly external hiring.6
How HR leaders can position the benefits of employee upskilling
At Investors in People we believe that actively is crucial to developing a high performing organisation. This is a fundamental part of our We Invest in People framework, which provides a roadmap for HR leaders to implement effective upskilling strategies.
#1
Understand people’s potential
HR leaders must ensure that upskilling is aligned with both individual aspirations and organisational needs, enabling employees to reach their full potential while delivering on business objectives.
Empower line managers to have regular, structured development conversations with employees to identify their current skills, growth areas and future potential. Use tools like individual development plans (IDPs) to map learning opportunities. Provide flexible learning options, such as e-learning platforms, blended learning or job rotations, that align with both organisational objectives and employees' preferred ways of learning.
#2
Support learning and development
To make upskilling effective, HR leaders must create an environment where employees can actively apply new skills and learning becomes an integral part of organisational culture.
Establish systems that allow employees to put newly acquired skills into practice. For example, introduce cross-functional projects or temporary assignments that allow employees to test new capabilities. Evaluate the return on investment (ROI) of upskilling initiatives by tracking metrics such as progression opportunities, improved performance or internal promotion rates. Share these results to demonstrate impact and sustain leadership buy-in.
#3
Deploy the right people at the right time
Strategic resource planning ensures that upskilling fills critical gaps and prepares employees for future roles.
Use skills assessments and workforce planning tools to identify gaps between current capabilities and future business needs. Tailor upskilling programmes to close these gaps efficiently. Integrate upskilling into succession planning strategies. Equip employees with the skills needed for critical roles to ensure business continuity and internal career progression.
#4
Promote ownership of learning
To embed the benefits of employee upskilling , HR leaders should encourage employees to take responsibility for their own development, fostering a culture of continuous learning.
Develop clear communication campaigns that highlight upskilling opportunities, including career pathways, available training programmes and internal mobility tools like DHL’s Career Marketplace. Offer employees autonomy to choose learning opportunities that align with both their personal interests and organisational goals. Use platforms that provide personalised learning recommendations to empower employees to chart their growth.
#5
Embed a culture of continuous learning
Upskilling should not be seen as a one-time effort but as an ongoing commitment to growth that drives long-term success.
Position continuous learning as a core cultural value by recognising and rewarding employees who proactively upskill and apply their learning. Highlight success stories that demonstrate the value of upskilling. Train managers to champion upskilling within their teams, encouraging employees to share knowledge and celebrate skill development as part of everyday work.
Upskilling as the new competitive advantage
As the skills landscape evolves, the benefits of employee upskilling are being recognised, and upskilling is seen as a defining and critical driver of organisational success. Companies that invest in continuous learning not only retain top talent but also ensure that their workforce remains adaptable, engaged and ready to tackle future challenges. In 2025 organisations that prioritise upskilling will not only meet the demands of a changing world but also build a workforce that thrives in it.
Conclusion
In 2025, upskilling is no longer optional—it’s essential for sustainable success. Organisations that embed continuous learning into culture, strategy and operations will unlock performance, retain top talent, and stay future-ready. HR leaders have a key role in aligning learning to business needs while empowering individuals to take charge of their growth. The future belongs to the capable, not just the qualified.
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Sources
- World Economic Forum, The Future of Jobs 2020 https://www.weforum.org/publications/the-future-of-jobs-report-2020/
- The CHRO of DHL says a new plan to upskill 160,000 employees will be key to ‘internal fluidity’ https://fortune.com/2024/10/30/dhl-chro-upskilling-internal-mobility-retention/
- Steil, A.V., de Cuffa, D., Iwaya, G.H. and Pacheco, R.C.d.S. (2020), “Perceived learning opportunities, behavioral intentions and employee retention in technology organizations”, Journal of Workplace Learning, Vol. 32 No. 2, pp. 147-159. https://doi.org/10.1108/JWL-04-2019-0045
- Talent Management Strategy in Retaining the Millennial Generation MK Qasabandiyah, U Farida – YUME: Journal of Management, 2024
- 2024 Gen Z and Millennial Survey, Deloitte https://www.deloitte.com/global/en/issues/work/content/genz-millennialsurvey.html
- The Real Cost of Recruitment, SHRM 2022 https://www.shrm.org/topics-tools/news/talent-acquisition/real-costs-recruitment
