Hiring vs. Upskilling: Which Strategy Delivers Better Results?
Business owners and executives often find themselves facing a difficult decision: upskilling vs training. Should they hire someone new or invest in developing the people already on their team? The answer is not always straightforward.
In reality, both strategies come with strengths and setbacks. Many businesses are under pressure to act quickly when gaps in skills appear, but fast decisions can carry long-term implications. It’s worth taking the time to understand what each option brings to the table before making the call.
Key Takeaways
- Upskilling strengthens your existing team by building on their knowledge and deepening engagement.
- Investing in employee development boosts retention, loyalty, and internal capability.
- Training internal staff fosters flexibility and smoother transitions when roles change.
- Upskilling may require time and resources but avoids the disruption of external onboarding.
- Recruitment costs, cultural fit challenges, and longer integration periods are downsides of hiring.
- Making deliberate decisions about hiring vs upskilling ensures the best long‑term value for the business.
Understanding the Real Challenge
Business conditions change faster than ever, and with that comes the challenge of keeping your workforce capable and motivated. Sometimes, the skill gap is small and easy to close with training. Other times, the task at hand requires advanced expertise that your team may not yet have.
The pressure to respond swiftly often pushes leaders to lean toward hiring. After all, bringing in someone new seems like the quicker solution. But that decision carries its own weight financially, operationally, and culturally.
We have worked with many organisations that assumed hiring would fix everything, only to find the adjustment period disrupted their momentum. This is why we recommend considering both strategies side by side, with a clear view of not only the outcome you want, but the trade-offs involved.
What It Takes to Develop Talent Internally
The Upside of Training Your Existing Team
One of the clearest benefits of upskilling employees is that it sends a message: we value you, and we believe in your potential. That message has powerful effects on engagement and retention.
Upskilling creates a stronger connection between team members and the business. It reduces the time and stress often involved in onboarding someone new, especially in roles that require an understanding of your systems, culture, or industry. From our experience as a business mentor, we often see that when people are supported to grow, they are more likely to stay, contribute ideas, and push for better outcomes.
Upskilling also makes use of what your team already knows. Rather than replacing valuable knowledge with a new face, you are adding to it. You maintain the trust, insight, and team dynamic already in place while building new strengths on top.
Another long-term benefit is flexibility. When staff are trained in multiple areas, they can step into different roles when needed. This allows for quicker pivots and better team coverage, especially useful in times of growth, restructuring, or unexpected change.
The benefits of upskilling staff also include creating a stronger workplace reputation. Companies known for developing their people tend to attract more talent over time because word gets around. In markets where good people are hard to find, this can become a competitive edge.
The Trade-Offs That Come With Upskilling
Of course, no strategy is without its limits. One of the more common disadvantages of upskilling is resistance. Some employees may be hesitant to change how they work, particularly if they have followed the same process for years. Others may worry about taking on new expectations or learning something outside their comfort zone.
Cost is another consideration. While upskilling is often more affordable than hiring, a well-run training program still requires time, money, and internal support. If your team is already stretched, it may be difficult to prioritise development without affecting daily operations.
And there is always the risk that once someone gains new skills, they may be approached by another company offering more pay. That is a fair concern, but we believe the greater risk is failing to invest at all. If employees feel stuck or undervalued, they are just as likely to leave, only without contributing more in the meantime.
Looking Beyond Short-Term Fixes
Upskilling is broader and more strategic than hiring and focused on long-term capability that supports both the business and the individual. This distinction is something an executive business coach can help clarify, especially when you are deciding how best to invest in your team.
When Bringing in New Talent Makes Sense
The Benefits of Hiring From Outside
There are situations where hiring new people is the right move. When the skill gap is too wide or when your business needs an immediate injection of specialised expertise, it may be faster and more effective to recruit externally.
Hiring can also introduce fresh thinking. Someone who comes from a different environment may question how things are done and suggest better ways forward. That kind of perspective is valuable, especially in businesses where processes have remained unchanged for too long.
Another reason to hire is capacity. If your team is already operating at full stretch, asking them to take on more through upskilling could create pressure and burnout. In this case, bringing in someone new allows you to spread the workload without sacrificing existing productivity.
The Downsides You Should Not Overlook
That said, hiring comes with its own costs, financial and otherwise. Recruitment fees, higher salaries, and onboarding time all add up. It is not uncommon for a new employee to take several months to feel confident and fully integrated, particularly if the role is technical or client-facing.
There is also the issue of cultural fit. Even the most skilled hire will need to adjust to your systems, your language, and the way your team operates. If that alignment takes too long, it can slow down projects and affect team morale.
We have seen examples where businesses rushed to fill a gap with a new hire, only to spend more time correcting misalignment than they would have spent on internal development. That is why every hiring decision should be weighed against the bigger picture, not just immediate needs.
Making the Right Call for Your Business
In most cases, upskilling your team will provide more lasting value than continually recruiting new people. It builds loyalty, saves time, and strengthens your culture from within. But there are times when hiring is the better option, such as when the technical requirements are too complex and time-sensitive to teach internally.
Other factors may also influence the decision. Some businesses qualify for tax benefits by creating new roles, which could tilt the scales toward hiring, especially when supported by government programs.
The important thing is to avoid defaulting to one approach every time. Both hiring and upskilling have their place. What matters is making the decision deliberately, based on what will support your business most effectively now and in the future. This is often where it helps to engage a business consultant, who can assess your team’s current capabilities and guide you in planning your next move.
If you are weighing up your next move, take the time to consider not just what you need but also who you already have. You might be surprised at how much untapped potential is already sitting within your team. With the right support, that potential could be your strongest asset.
