As organisations face growing skills gaps, the decision between upskilling existing talent and hiring new employees has become increasingly complex. Recent data shows that successful companies are adopting a dynamic approach, combining both strategies to build resilient, future-ready workforces.
The Case for Upskilling
Internal talent development offers significant advantages. Organisations can save approximately £16,000 per employee by building skills internally rather than hiring externally. Existing employees already understand company culture and processes, reducing onboarding time and improving retention. Research shows that 67% of employees would remain in roles they dislike if given clear advancement and upskilling opportunities.
When New Hiring Makes Sense
External recruitment brings fresh perspectives and immediate access to needed skills. Skills-based hiring, which prioritises capabilities over traditional qualifications, allows organisations to tap into diverse talent pools and secure cutting-edge expertise. This approach is particularly valuable when rapid growth or new technology adoption requires immediate specialist knowledge.
Finding the Right Mix
The optimal balance depends on several factors:
Urgency of skill requirements Available learning and development resources Current workforce adaptability Market availability of needed skills Budget constraints
Forward-thinking organisations are implementing hybrid strategies:
Using interim specialists to support internal development Creating mentorship programmes pairing new hires with existing staff Developing clear skills frameworks that support both hiring and development decisions Building robust learning cultures that attract talent while supporting internal growth
Success lies not in choosing between upskilling and hiring, but in strategically combining both approaches to create adaptable, skilled workforces ready for future challenges.