Upskilling Is The New Hiring: How Employers Are Investing In People

As technology, automation, and AI reshape industries, employers are realizing that the most powerful investment they can make isn’t in new tools, it’s in people. The World Economic Forum’s 2025 Future of Jobs Report reveals that 85% of employers plan to prioritize upskilling their workforce by 2030, while 70% expect to hire staff with newly developed skills.

This marks a profound shift in workforce strategy: from a hiring-first mindset to one focused on developing and retaining internal talent. Upskilling has officially become the new hiring, and for forward-thinking companies, it’s the key to resilience, innovation, and long-term growth.

Why Upskilling Is No Longer Optional

By 2030, 60% of employers expect digital access to transform their business, while 86% cite advancements in AI and information processing as major disruptors. The rise of robotics, automation, and big data is creating both opportunity and disruption as new jobs are emerging as fast as old ones disappear.

The WEF projects that 22% of today’s jobs will be redefined by 2030, resulting in 170 million new roles created globally, but also displacing 92 million. This “talent churn” means that organizations that fail to adapt will face widening skills gaps and lost productivity.

Upskilling existing employees is the fastest, most cost-effective way to bridge this gap, while also preserving institutional knowledge and employee loyalty.

The Business Case for Upskilling

As the pace of change accelerates, organizations can no longer rely solely on external hiring to fill skill gaps. Building talent from within offers a smarter, more sustainable path forward.

Reducing Recruitment Costs

Hiring new talent is expensive. Between job ads, recruiter fees, onboarding, and ramp-up time, replacing a single employee can cost 1.5x their annual salary. Upskilling allows employers to meet evolving skill needs internally, often at a fraction of the cost and with better results.

Boosting Retention & Engagement

Employees who see growth opportunities are more likely to stay. Training and development programs foster engagement, improve morale, and strengthen employer branding. According to WEF data, supporting employee health, well-being, and development is now a top strategy for attracting and retaining talent, cited by 64% of employers.

Driving Business Agility

When markets shift, agile organizations adapt faster. Workers trained in AI, data analytics, and digital tools can pivot with evolving business priorities. Upskilling doesn’t just close skills gaps. It builds a workforce capable of navigating uncertainty with confidence.

Emerging Skills That Define The Future

The WEF 2025 report highlights the top three fastest-growing skills as:

• AI & Big Data
• Networks & Cybersecurity
• Technological Literacy

These are complemented by “human” skills that can’t be automated:

• Analytical Thinking
• Resilience, Flexibility, and Agility
• Leadership and Social Influence
• Creative Thinking
• Curiosity and Lifelong Learning

In fact, seven in ten employers consider analytical thinking essential in 2025, while creative and adaptive capabilities are rising in importance across every sector.

For employers, this means designing training programs that blend technical fluency with human capability.

Industries Leading The Upskilling Revolution

Upskilling isn’t confined to tech startups or innovation hubs. It’s becoming a universal business strategy. Still, a few key industries are leading the charge, showing how talent development can fuel growth and resilience.

Technology & AI

Tech-driven roles such as AI and Machine Learning Specialists, Big Data Analysts, and Software Developers are growing faster than any other job category. Companies are racing to train employees in data-driven decision-making and prompt engineering to keep pace with innovation.

Green Energy & Sustainability

As climate-change mitigation ranks among the top three transformative trends, the demand for renewable energy engineers, environmental scientists, and EV specialists is soaring. Businesses are retraining their workforces to support green technologies and sustainable operations.

Healthcare & Education

Aging populations and expanding working-age demographics are fueling demand for nursing professionals, care workers, and educators. Upskilling in healthcare technology, patient communication, and digital record management is essential to meet this demand.

Frontline & Essential Roles

Even traditional roles, from logistics to construction, are evolving through automation. Employers are investing in training for digital tools, safety technologies, and leadership skills, ensuring these essential workers remain competitive and empowered.

From Skills Gaps To Growth Opportunities

Despite widespread recognition of the need for upskilling, 63% of employers still identify skills gaps as the biggest barrier to transformation.

But where there are gaps, there are opportunities. Upskilling isn’t just a training initiative; it’s a business growth strategy. By realigning talent development with future skill demands, companies can turn disruption into differentiation.

Forward-looking organizations are already:

• Conducting skills audits to identify internal gaps.
• Building learning pathways for critical competencies.
• Leveraging AI-driven learning platforms to personalize employee development.
• Partnering with staffing and consulting agencies to design tailored upskilling programs aligned to business goals.

How Employers Can Start Investing in People

Recognizing the value of upskilling is only the first step. The real impact comes from turning insight into action. Forward-thinking employers are already implementing structured strategies to invest in their people and future-proof their organizations.

Create A Skills-First Strategy

Shift from job-based hiring to skills-based workforce planning. Map which capabilities your organization needs now and which it will need in three years.

Build Learning Into Everyday Work

Encourage “learning in flow” by integrating microlearning, mentorship, and peer collaboration into existing workflows.

Promote Internal Mobility

Facilitate internal transfers and career transitions. According to WEF data, half of employers plan to transition staff from declining to growing roles, proving that internal mobility is becoming a critical retention tool.

Leverage AI For Personalized Learning

AI-powered learning management systems can track progress, suggest training paths, and predict future skill needs, allowing organizations to stay ahead of change.

Partner Strategically

Working with a talent partner like Premier helps companies build agile workforces through staffing, HR consulting, and strategic recruitment solutions. By combining workforce analytics with people-centric strategies, Premier enables clients to future-proof their teams and lead through transformation.

The Human ROI Of Upskilling

Upskilling is more than an HR initiative. It’s an investment in your company’s capacity to innovate, compete, and thrive.

Organizations that invest in people gain:

• Increased innovation and productivity
• Higher employee retention
• Stronger employer branding
• Sustainable growth amid automation and disruption

As the Future of Jobs Report makes clear, global job creation will continue, but success will belong to employers who build skills as fast as technology evolves.

The Future Belongs To The Learning Organization

By 2030, the most successful companies won’t just have adopted AI or automation. They’ll have redefined what it means to be human at work. They’ll be organizations that treat upskilling not as a perk, but as a pillar of business strategy.

At Premier, we help employers adapt to this new reality, developing, hiring, and empowering talent that’s ready for what’s next. Our experts help clients identify skills gaps, implement learning programs, and build adaptable, engaged workforces that drive long-term success. Because when you invest in people, you invest in progress. Partner with Premier to build the workforce of tomorrow, today.