Upskilling and reskilling are two terms used to describe the process of learning new skills or expanding existing ones. The main differences between the two are the nature of the skills learned and the end goal of the learning.

Upskilling refers to the process of learning new skills or teaching workers new skills to enhance their performance in their current role, potentially advancing them along their career path. Upskilling is usually an intentional learning process where employees gain exposure to deeper knowledge through content-based coursework and training.

Reskilling involves learning new skills outside of the worker’s existing skillset, often closely adjacent to their current function, but may sometimes be geared toward a different path entirely. Reskilling prepares current workers for different roles, and the positions they’ve been doing for several years might be on their way out. While there’s no longer a market demand for the employees’ existing skills, the business doesn’t want to replace them. Instead, the company can train these workers to embark on altered career paths.

Both upskilling and reskilling are effective strategies for employers to combat what is expected to become a perennial skills shortage. They help retain talent, close skill gaps, and enable organizations to develop the skills needed to handle fast-approaching developments, which may require more agility.