Upskilling & Reskilling: in the age of Data and AI!

The skills revolution is underway. Faced with digitization, the rise of generative AI and the constant emergence of new professions, companies are faced with a major challenge : how can they adapt their talent to ever-changing needs while respecting their social and regulatory commitments ? Two structural responses are needed : upskilling and reskilling.

Far from being mere training schemes, these approaches are now real levers for HR, business and social responsibility performance.

In a context where the CSRD (Corporate Sustainability Reporting Directive) now requires greater transparency on social indicators, including training and skills development, upskilling and reskilling are becoming strategic pillars with a dual impact : operational performance and ESG compliance (environmental, social and governance criteria).

WHY UPSKILLING AND RESKILLING HAVE BECOME ESSENTIAL?

The job market is changing fast :

• 85% of the jobs of 2030 do not yet exist, revealing the extent to which skills and roles are changing.
• AI and automation are profoundly transforming low value-added tasks, freeing up time for activities with higher strategic value.
• Employees are expressing a growing need to develop their skills to remain employable and committed in the face of change.
• European regulations (CSRD, SFDR) now require companies to measure and publish their investment in training, skills development and professional inclusion in their extra-financial reports.

"In this context, it's no longer a question of reacting, but of anticipating," explains Jean-Clément Blancher, Senior Manager AI & GenAI at ACT-ON DATA. "Upskilling and reskilling enable companies to prepare their talent for future transformations, while consolidating the social and skills data needed for ESG compliance."

ACT-ON DATA supports organizations in structuring this data and deploying appropriate skills enhancement programs, while guaranteeing the quality and traceability of the information.

UPSKILLING AND RESKILLING: TWO COMPLEMENTARY DYNAMICS

These two approaches don't conflict, they complement each other :

• Upskilling : reinforcing existing skills to adapt to changes in a business.
  Example : A management controller is trained in data visualization tools (Power BI, Tableau) and the principles of ESG financial reporting.
  
  " Upskilling enables employees to capitalize on their current skills and remain effective in their day-to-day missions." As Jean-Clément points out.
  
  
• Reskilling : redirecting an employee towards a new profession by capitalizing on his or her transferable skills.
  Example : An industrial maintenance technician evolving towards an IoT/predictive maintenance analyst role, drawing on his or her business knowledge and developing data/code skills.
  
  " Reskilling opens up new prospects for employees, while helping the company to secure its know-how and limit external recruitment costs." He adds.

By combining these two approaches, organizations gain in flexibility and adaptability, while strengthening talent commitment and retention.

UPSKILLING AND RESKILLING: ESG-CSRD AND RESPONSIBLE PERFORMANCE

The CSRD directive: a turning point for the HR function

Since January 2024, the European CSRD directive has required companies with more than 250 employees to publish a sustainability report including detailed social indicators. This makes the HR function a strategic player in social performance.

Jean-Clément explains, "CSRD requires HR to prove that every training and skills development initiative contributes directly to the company's social and ESG objectives."

The "Social" component (the "S" in ESG) covers in particular :

• Workforce and trends (turnover, internal mobility).
• Training and skills development.
• Equal treatment (M/F parity, pay gaps, inclusion).
• Health and safety at work.
• Social dialogue and employee commitment.

Consequently, the impact on upskilling and reskilling is direct:

Companies must now measure, trace and publish :

• Number of training hours per FTE and by category (management/non-management, M/F, age groups).
• Training investment as % of payroll.
• Rate of access to training and equity of access (combating inequalities).
• Effectiveness of systems : internal mobility rate, employability rate maintained.
• Align training with climate strategy (e.g. energy transition professions).

"Without reliable, structured data, it's impossible to demonstrate the effectiveness of skills enhancement paths and compliance with ESG requirements." Jean-Clément adds.

The critical role of HR data quality:

To meet these requirements, HR data quality is becoming a prerequisite for compliance. There are still many obstacles to overcome :

• Reliability : Scattered training data (LMS, Excel, HRIS, decentralized budgets), source of inconsistencies.
• Completeness : Informal training (mentoring, MOOCs, conferences) often untracked.
• Granularity : Need for fine segmentation (BU, profession, CSP, gender, age) to demonstrate equity of access.
• Auditability : Ability to provide verifiable evidence to external auditors.
• Ethics and transparency of AI in HR decisions.

The growing use of AI to drive upskilling and reskilling raises ethical issues now framed by :

• European AI Act transparency and explicability requirements for high-risk AI systems.
• RGPD (General Data Protection Regulation) : right to explanation of automated decisions impacting employees.

"AI should be used to create opportunities, not reproduce biases. " Jean-Clément emphasizes. "Every recommendation must be transparent and understandable to the employee.

The principles to be respected are :

• Non-discrimination.
• Transparency.
• Right to object.
• Privacy by design.

TOWARDS A PROACTIVE, HIGH-PERFORMANCE HR STRATEGY !

Upskilling and reskilling are not just HR tools : they are performance gas pedals with a triple impact :

1. Performance Business :

• Build employee loyalty by offering concrete, personalized career prospects.
• Reduce turnover and external recruitment costs (savings of €40-60,000 per executive recruitment avoided).
• Align talent skills with the company's global strategy (accelerated time-to-market on new projects).
• Make teams a driving force for innovation and competitiveness (increased organizational agility).

2. Social Performance (ESG) :

• Secure career paths and sustainable employability.
• Reduce inequalities in access to training (inclusion, diversity).
• Strengthen employee commitment and satisfaction (surveys show +25% commitment among employees benefiting from personalized career paths).

3. Regulatory performance :

• Comply with CSRD/ESRS social requirements.
• Anticipate future regulations (AI Act, HR due diligence).
• Enhance ESG attractiveness to investors and talent (employer selection criteria for Millennials/GenZ).

"Upskilling and reskilling, when driven by reliable data and an ethical approach, become a strategic tool for corporate performance and compliance." Concludes Jean-Clément.

TURN HR CHALLENGES INTO OPPORTUNITIES WITH ACT-ON DATA :

At ACT-ON DATA, we work with organizations to turn these challenges into concrete actions, and make skills a real factor in performance.

Upskilling and reskilling mark a new era for HR. They are transforming skills management into a strategic process in which data and AI play a central role.

Training is no longer enough : anticipating, developing and transforming your talents is now the key to the future.

Together, we can prepare your employees for tomorrow's developments !

Do you have an idea for a project ? Contact our ACT-ON DATA experts today !

Find out more about our customer projects !