2.55 Upskilling Employees – Is It Worthwhile For Small Businesses?

In this episode, Karen Kirton explores why upskilling employees is essential for long-term business success, especially in response to skills shortages, automation, and evolving job requirements. Many small businesses assume that training and development are only for large companies, but Karen breaks down affordable, practical ways to invest in employee development, helping businesses retain key people, attract top talent, and stay competitive.In today’s episode, you will learn:1. Why Upskilling Is Critical for Business ViabilityThe World Economic Forum reports that by 2025, 50% of employees will need re-skilling, and 40% of workers’ key skills will change in five years.Automation will increase, with 67% of jobs done by humans in 2022 predicted to drop to 53% by 2025.Soft skills are becoming more valuable—8 out of the top 10 future skills include critical thinking, creativity, and problem-solving.2. How Upskilling Can Help Retain Key EmployeesResearch shows that lack of development opportunities is one of the earliest warning signs of employee turnover—9 months before quitting, employees feel stalled in their professional growth.Larger companies are increasing their learning and development budgets, making it harder for small businesses to compete for talent.Companies that invest in training see better engagement, higher satisfaction, and stronger retention rates.3. How Upskilling Helps Businesses Overcome Hiring ChallengesThe 2022 Population Statement predicts a smaller, older workforce, making hiring more difficult in the coming years.“Quiet hiring” is a growing trend—businesses upskill existing employees to fill skills gaps without hiring externally.Non-linear career paths are becoming more common—employers must focus more on a candidate’s ability to learn rather than past experience or degrees.4. How to Upskill Employees Affordably in Small BusinessesKaren shares a case study of a tech-based company facing digital disruption:Developed a five-session training program (2–4 hours per session, spaced six weeks apart).Open to all employees, leading to 50% participation and stronger cross-functional collaboration.Focused on both soft skills (e.g., resilience, leadership) and organizational needs.Resulted in higher employee engagement and improved staff survey results.Other low-cost upskilling strategies include:Personal development plans (setting one goal per quarter).On-the-job training, mentoring, and cross-training opportunities.Industry webinars, online courses, and in-house training programs.Using government grants and workforce development programs.By prioritizing upskilling, small businesses can adapt to future workforce needs, retain key talent, and strengthen their hiring capabilities—without breaking the budget.Make sure to subscribe to stay updated with new releases every second Monday!We’d love your feedback on this series, just head on over to Amplify HR or connect with Karen on LinkedIn. Send us Fan MailGet our free eBook packed with practical strategies to attract, engage, and retain top talent. Perfect for business owners and leaders focused on building a thriving team. Download it at amplifyhr.com.au/downloadable/find-grow-keep