Why you should prioritize upskilling in 2025

Forward-thinking companies know that prioritizing upskilling is vital to retention and agility in 2025.

With rapid advancements in technology, especially in AI, employees need opportunities to evolve their skill sets to stay engaged and adaptable. This focus isn’t just about keeping pace with change but building a resilient workforce equipped to grow alongside the business. As Thomas Ogilvie, CHRO of DHL, puts it, “It would be stupid if a company says, ‘I’ll double down on recruiting,’ if you then don’t double down on keeping your people,” says Thomas Ogilvie, CHRO of DHL.

Ogilvie clearly articulates how investing in recruitment without equal focus on employee retention and growth can leave companies vulnerable. Upskilling isn’t a perk — it’s a necessity.

Here’s why upskilling matters and how it drives employee engagement and long-term success:

5 benefits of upskilling employees

Upskilling equips employees with new competencies, boosting engagement, adaptability and the company’s ability to innovate. Let’s take a look:

1. Upskilling increases employee engagement

Learning new skills keeps employees motivated. They feel empowered and more connected to their work. This connection boosts productivity and reduces turnover, keeping valuable knowledge within the company.

2. Upskilling strengthens adaptability

With AI transforming industries, adaptable employees are a must. Training employees in AI literacy, data analytics and problem-solving prepares them to navigate new challenges, reducing the fear and friction associated with large-scale changes.

3. Upskilling improves internal mobility

Upskilling enables employees to grow within the organization, filling roles that might otherwise require external recruitment. Employees who see growth opportunities are more likely to stay and contribute to the company’s success.

4. Upskilling enhances customer satisfaction

Teams with cutting-edge skills deliver better results for customers. For example, employees trained in AI can provide quicker, data-driven solutions, strengthening relationships with clients and improving overall satisfaction.

5. Upskilling boosts retention + reduces recruitment costs

Upskilling helps retain valuable employees by showing a commitment to their growth, which reduces turnover and minimizes the need for costly recruitment efforts.

Risks of not upskilling

When companies overlook upskilling, they create a skills gap, limiting their innovation ability. Employees without relevant training become frustrated and disengaged — and they may even leave, resulting in costly turnover.

Additionally, a workforce lacking critical skills is more vulnerable to disruptions, especially as AI and automation reshape roles and industries. A stagnant team can place an organization at a disadvantage, struggling to catch up or retain relevance in the market.

Power skills for 2025

Given AI’s expansion, specific skills will be crucial in the coming years. Here are essential power skills to prioritize:

• AI literacy: Understanding AI basics, including interacting with AI tools and interpreting AI-generated insights, will be essential in almost every role.
• Data analysis: With more data available than ever, employees skilled in data interpretation can make strategic decisions that give companies an edge.
• Emotional intelligence: Human-centered skills will set top performers apart as technology advances, especially in leadership and customer-facing roles.
• Complex problem-solving: Automation will streamline many tasks, but critical problem-solving will require human insight to tackle complex issues AI can’t yet address.
• Agility + adaptability: A flexible mindset is crucial as employees must quickly adapt to new technologies and processes to keep up with industry shifts.

The role of live training in effective upskilling

While online courses and on-demand modules offer flexibility, live training holds a unique advantage when it comes to upskilling. Here are three examples:

• Live learning encourages real-time interaction.
• When employees learn live, they absorb the material better and can immediately apply it to specific challenges and opportunities.
• Live learning participants gain insights from peers, fostering a collaborative environment where ideas flow freely and relationships are built.

Additionally, live training keeps content relevant. Instructors can adjust the focus of sessions to address recent industry trends, including the latest in AI or shifts in market demands. This responsive approach keeps employees current with the latest developments and strategies, creating a more dynamic and capable workforce.

Creating a culture of growth

In 2025, companies that champion upskilling will foster a culture of growth, inspiring employees to improve and innovate continuously throughout this AI era. Upskilling isn’t just about keeping up with change—it’s about leading and showing employees they’re valued and trusted with the future.

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