Home › HRMS › HR glossary › Reskilling
HR glossary

What is Reskilling? Meaning and Example

Reskilling is training an employee for a different job from the one they do now, usually because their current role is being automated, reduced or phased out, or because the business needs people in new areas. The aim is to move the person into the new role instead of letting them go and hiring someone else.

Reskilling vs upskilling

Upskilling deepens skills within the same role; reskilling builds a new set of skills for another role. A telecaller learning a new product script is upskilling. A telecaller trained to become a collections officer, or a quality inspector trained as a data analyst for the quality team, is reskilling. Reskilling takes longer, often months, and needs a real vacancy at the end, or the training has nowhere to lead.

When reskilling makes sense

It makes sense when you can see a role shrinking before it disappears, for example when a plant automates packing, a bank moves routine transactions to digital channels, or an office replaces manual data entry with software. Reskilling keeps experienced people who know your customers, products and culture, and avoids the cost and disruption of separation and fresh hiring. It works well when the new role builds on something the person already knows, such as moving a packing line operator into maintenance on the same line.

Running a reskilling programme

Talk to employees early and honestly. People accept a change of role far better when they hear about it months ahead, with a clear plan, than when it arrives as a surprise alongside a restructuring.

Example: In January 2025, an auto components plant in Sriperumbudur automated its final packing line, which had employed 24 packers. Instead of separating them, HR and production head Mohan Krishnan selected 16 who passed an aptitude test for a six-month programme in machine maintenance and quality inspection, with classroom sessions and shadowing on the line. Thirteen moved into maintenance helper and inspector roles by August 2025, and the other 11 were placed in stores and dispatch.

See it on your own data

A 30-minute demo on a video call. We set up your departments, shifts and leave rules and show attendance, leave and payroll running for your team. Free for your first 50 employees.

Book a free demoSee pricing

Frequently asked questions

Why is reskilling important?

Reskilling lets a company keep experienced employees when their roles change or shrink because of automation, new technology or a new business model. It saves the cost of separation and fresh hiring, keeps knowledge of customers and processes inside the company, and shows the rest of the workforce that change does not automatically mean job loss.

Is reskilling the same as retraining?

The terms overlap. Retraining often means refreshing or repeating training for the same job, such as a refresher on a safety procedure. Reskilling specifically means learning the skills for a different job. When a company moves a packer into machine maintenance with months of new training, that is reskilling rather than retraining.