Employee Upskilling: Maintaining Human Relevance in the Age of AI
The age of AI is here to stay, with 77% of companies either using or exploring the use of artificial intelligence in their business. What’s more telling, 83% of companies claim that AI is a top priority in their future business plans.
While AI is great for saving time and eliminating monotonous tasks, there’s one thing it can’t do: Be human.
Many HR professionals, according to data from SHRM, believe that upskilling is the solutionwhen it comes to striking the right balance between technological efficiency and human ingenuity.
As entry-level work is automated by AI tools, it’s important to help your people upskill so they can take on new roles that maximize their skills and specialties.
Why Upskilling Is the Key
Professional development has historically been an important driver for retention, satisfaction and engagement, with:
- 86% of employees saying they’d switch jobs if their new position offered more growth
- 63% of employees saying that a lack of upskilling was the reason they quit their last jobs, and
- 71% of employees saying professional development increases their job satisfaction.
Not only that, when organizations develop a robust professional development strategy that reaches all employees, they achieve 11% higher profitability and twice the retention rate.
Employees stay longer, feel happier and are more motivated when they have a clear path of professional growth — all of which leads to better organizational performance.
A Troubling Trend
Despite the benefits, a trend has appeared in recent years that shows how organizations don’t understand them. A generation ago, 90% of vacancies were filled internally; today, only 15% of vacancies are filled internally.
Companies are turning to outside hires at an alarming rate, taking the perceived easy way out instead of investing in their existing employees. Add to that the growth of AI, and you have a recipe for dissatisfaction, disengagement and turnover.
External hires cost 18% more and are 21% more likely to quit when compared to internal hires. What’s more, studies show that internal hires are 25% more successful in their new role.
The ROI of upskilling is clear: improved retention, improved engagement, more affordable hiring, and greater business results. Combine that with judicious use of AI, and you’ve found a cheat code for success in the modern age.
Strategies for Effective Upskilling
While upskilling is a case-by-case strategy, there are some best practices to help make it more effective for employees looking to grow in their roles.
1. Take Inventory of Present Skills and Future Goals
Individually, help employees understand and write down their present skills. Then, work with them to set goals for their professional growth.
As an organization, take inventory of any existing talent needs and try to plan for future needs, too. Plan which needs can be filled by AI and which will need human oversight.
With both individual plans and organizational plans, you can seamlessly tie employee upskilling into company growth.
2. Implement HCM and LMS Systems
HR technology is the best way to catalog, monitor and track workplace skills and development. You can set up a workforce skills matrix, match employees to new opportunities, and adjust strategies based on up-to-date data.
Human Capital Management and Learning Management Systems are two of the best tools to manage this information. There are many options, so do your research to find the tools that fit your needs and budget.
3. Create a Mentorship Program
One of the best ways to both build a culture of upskilling and develop greater collaboration is with a mentorship program. Create a formal process for pairing newer employees with more experienced people.
Use your HCM to pair new employees with skilled mentors who are eager to help.
4. Empower Employee Participation with Incentives
Doing all the work to set up upskilling programs is great, but worthless if employees don’t participate. To drive participation:
- Schedule time dedicated to professional development for each person, and
- Set up incentives and rewards for participation.
With exciting rewards, incentives can boost program participation by 97%, ensuring your upskilling programs are effective and drive the right results.
5. Get Managers Involved
Managers have the most impact on the daily lives of employees, and through performance reviews, one-on-ones, and casual conversations, they can drive continuous improvements.
Help train managers on how to set up the right touchpoints and check-ins. With a central, company-led strategy for professional development, managers need to be the first point of contact for employees.
Retain the Human Touch in the Future of AI
Employees want to grow in their roles, and AI is making upskilling more necessary than ever. Set up strong professional development with these strategies to help your people develop their existing skills, learn new skills and find the right roles for them.
Article originally published by HRMorning.org on November 25, 2025. Written by Steve Sonnenberg.