To stay competitive in today’s business environment, having the right technology isn’t enough. Organizations must also equip their workforce with the right skills, especially as advancements in AI and automation accelerate the rate at which current skill sets become obsolete. Upskilling and reskilling are no longer just nice-to-haves; they are essential tools to help businesses close talent gaps, drive productivity and retain top performers.

In this article, we explore the difference between upskilling and reskilling, the cost of inaction, where businesses are likely to see skill gaps in the near future and how Charleston-region employers are responding to these challenges. We also examine the real return on investment organizations can expect from engaging in continuous learning strategies.

What Are Upskilling and Reskilling?

Though often used interchangeably, upskilling and reskilling serve different purposes and both are vital in today’s evolving workforce landscape.

• Upskilling involves enhancing existing skill sets to help employees grow within their current roles or industries. For example, training in advanced software or leadership skills builds on an employee’s foundation and allows them to contribute at a higher level.
• Reskilling, on the other hand, is about preparing employees for entirely different roles, often in response to shifts in industry demand. As AI and automation transform operations, some roles will disappear and reskilling becomes critical to redirect talent into areas of strategic importance.

According to Forbes, up to 1.4 million U.S. workers will need to be reskilled by 2026, with 70% of those cases driven by the elimination of current job types​. This reflects a growing need for businesses to not only react to change but to anticipate it.

The Risk of Inaction: What Happens Without a Skills Strategy?

Businesses that fail to prioritize skill development risk more than just falling behind, they may find themselves unable to adapt at all.

Without clear strategies for upskilling or reskilling:

• Skills gaps widen, particularly in technical roles that are essential for innovation and digital transformation.
• Employees disengage or leave in search of growth opportunities elsewhere.
• New tools and technologies fail to gain traction due to undertrained teams.
• Companies lose ground to more agile competitors who are quicker to evolve.

The Harvard Business Review emphasizes that reskilling can be a major competitive advantage, enabling companies to “develop talent that is not readily available in the market and fill skills gaps that are instrumental to achieving their strategic objectives—before and better than their competitors do.”​

The Speed of Change: Where Skills Are Headed

Technology is changing faster than many organizations can keep up and that has serious implications for skill development.

IBM’s research indicates that many job skills now have a “half-life” of just five years. For more technical competencies, that figure drops to 2.5 years​. In practice, this means that the expertise a team has today may be irrelevant by the end of the decade.

Future-ready businesses will need employees who can:

• Work alongside AI tools and machine learning models
• Translate complex data into actionable insights
• Operate securely in a digitized environment
• Adapt quickly to new platforms and workflows

These aren’t specialized IT skills anymore; they’re becoming part of the baseline expectation for many roles across industries.

What This Looks Like in Charleston

Workforce data from the Charleston region illustrates a very real challenge. According to the Charleston Metro Chamber’s 2023 Compensation and Benefits Practices study:

• 48% of manufacturers identified “technical skills or hard skills” as a top workforce challenge, second only to a lack of applicants
• Among non-manufacturers, 23% shared that concern, while 61% said “lack of or too few applicants” was their top issue

This highlights a double-edged problem: Not only are employers struggling to find qualified candidates, but they’re also experiencing skill gaps among those already on staff. The response? Businesses must double down on developing the people they already have.

However, there’s still room for improvement:

• Just 41% of manufacturers offer paid professional development
• 52% offer tuition reimbursement
• For non-manufacturers, 61% offer paid professional development, while only 39% offer tuition reimbursement

These numbers suggest that many employers recognize the challenge but not all are investing in solutions at scale.

“Our region’s workforce data makes it clear that we need a collaborative, regional approach to these challenges. Bringing together businesses, educators and workforce organizations to implement sector-specific strategies not only invests in the upskilling of current employees but also attracts new staff to close key skill gaps across industries,” said Celeste Granger, Senior Vice President of Programs and Initiatives at the Charleston Metro Chamber.

Why It Pays Off: ROI of Upskilling and Reskilling

The return on investment from employee development can be seen in both quantitative metrics and qualitative benefits.

Quantitative impacts:

• Increased employee productivity
• Lower turnover and recruitment costs
• Faster adoption of new tools and processes

Qualitative outcomes:

• Higher job satisfaction and morale
• Greater agility in the face of market change
• A stronger culture of innovation

And the impact isn’t hypothetical. In its 2022 ESG summary, AT&T reported that 1,950 employees who received real-time tutorial recommendations helped generate 4,300 new customers and $4.5 million in incremental annual revenue​.

Despite this, few companies are measuring the outcomes of their learning investments:

• Only 15% of business leaders view learning as a core part of business strategy
• Only 4% of companies track business outcomes linked to skill-building (like improved productivity or increased employability)​

This disconnect presents a clear opportunity: By aligning skill development with strategic goals, organizations can unlock long-term value that goes far beyond training metrics.

Moving Forward: What Your Business Can Do Today

Becoming a future-ready organization doesn’t require a complete overhaul. But it does require intention and urgency.

Steps to take now:

• Assess your current and future skill gaps
• Launch internal learning initiatives or mentorship programs
• Explore tuition assistance or paid development opportunities
• Connect with the Charleston Metro Chamber to access tools, regional sector partnerships and support

Many local employers are already taking steps to invest in their teams. Those who start today will be better positioned to navigate workforce disruptions, attract new talent and lead in their industries.

Upskilling and reskilling aren’t just trends, they’re fundamental to business resilience and growth. As the pace of change accelerates, the companies that thrive will be those that prioritize learning and equip their teams to evolve. The future is coming fast. The best time to start preparing is now.