Upskilling, meaning enhancing employees’ current skills and adding new capabilities, is more than just a buzzword. It is an investment and strategy that delivers substantial financial and non-financial benefits to organisations. It also contributes to making your workplace future-fit, sustainable and adaptable to economic and industry changes.
Here is why upskilling your staff should be a top priority for your business.
Upskilling = strong return
Upskilling has demonstrated a strong return, especially on training investment.
Australian research shows that for every dollar invested in learning and development per employee, businesses typically earn back $4.70 in revenue. That is nearly a fivefold return.
It also has been known to boost productivity and efficiency, which is at the forefront of most organisations’ minds at the moment.
Upskilled employees work smarter and faster. One report noted that 81 percent of employers in Australia observed higher productivity following reskilling, whilst 74% of business leaders reported a noticeable efficiency.
Upskilling = staff retention
It stands to reason that providing upskilling opportunities keeps staff motivated and loyal to their place of employment. Employees value organisations that invest in their growth, because it demonstrates they care about them as a person and a long-term employee.
PwC reported that ‘Upskilling has become so valuable to employees they see it as a company differentiator.’
Hiring new people can be expensive, time-consuming, and a bit of a gamble at the best of times. That’s why more and more employers are looking inward when it comes to advancing careers of existing employees as opposed to sourcing external in filling roles. In fact, ‘73% of employers say that if money wasn’t a factor, they’d rather reskill someone already on the team than bring in someone new.’
And it makes sense. Current employees already understand your business, your culture, and your way of doing things. With the right training, they can hit the ground running—no long onboarding process, no learning the ropes from scratch. It’s faster, smarter, and often way more cost-effective.
It can cost up to $40,000 to hire a new employee. Internal mobility isn’t just good for the bottom line but it’s great for morale and retention too.
Upskilling = closing skills gaps
The workforce is evolving just as fast as technology and keeping up is no longer optional. Continuous upskilling is becoming the norm, not the exception.
And the need is quite obvious 64% of Australians say the skills their job requires will shift over the next five years. Whether it’s adapting to AI, new tech, or industry shifts, investing in learning today helps future-proof tomorrow.
More and more Aussie businesses are starting to feel the strain when it comes to productivity and performance. 57% of employers say that skills gaps are directly affecting productivity. When staff lack the up-to-date knowledge or capabilities needed to do their jobs efficiently, it creates bottlenecks, delays, and missed opportunities. It also puts added pressure on other team members to pick up the slack, which can lead to burnout and high turnover. And sometimes, even resentment, which can make for a hostile work environment.
Closing these gaps through targeted training and upskilling isn’t just about keeping up to look good, it’s about unlocking the full potential of your workforce and keeping your business running smoothly.
Upskilling = workplace happiness
When people feel like they’re growing, they show up differently. Upskilling isn’t just about ticking boxes. It creates a culture where learning is valued, morale is high, and teams collaborate better. ‘…those who are satisfied by their employer’s learning culture are 25% more likely to be happy at work.’
It also extends beyond the immediate workplace. Customers can tell when they’re dealing with someone who knows their stuff. Investing in staff development pays off in real-time, with better service, happier customers, and stronger loyalty. And in a competitive market, that edge matters.
Not sure where to start? At Time Education & Training, we’re experts when it comes to corporate training. We can guide you with a customised training program, or point your staff members towards the most appropriate individual qualification, depending on your needs and desired outcomes.
