How Upskilling and Reskilling Are Transforming HR in Canada: Closing the Skills Gap in 2026

Introduction: Canada’s Growing Skills Gap Challenge

Canada’s labour market is undergoing a major shift. Between persistent labour shortages, rapid technological change, and the rise of automation, organizations across the country are struggling to find candidates with the right skills to meet evolving business needs.

Relying solely on external recruitment has become unsustainable. Hiring costs are rising, talent is increasingly scarce, and competition is intense.
The most effective solution today is developing internal talent through upskilling and reskilling.

These HR strategies are redefining how Canadian employers recruit, train, and retain their workforce.

Upskilling vs. Reskilling: Two Complementary HR Strategies

Upskilling: Enhancing Current Skills

Upskilling focuses on improving an employee’s existing skills to:

  • perform better in their current role

  • keep up with technological changes

  • prepare for horizontal or vertical career advancement

Canadian example:
A customer service representative receives training on AI-powered tools to handle higher-complexity interactions.

Reskilling: Redirecting Talent to High-Demand Roles

Reskilling equips employees with entirely new skills to transition into different roles within the organization.

Canadian example:
An administrative clerk completes data analytics training and becomes a junior business intelligence technician.

Why it matters:
Because Canadian employers face significant talent shortages in sectors such as:

  • technology

  • manufacturing

  • healthcare

  • cybersecurity

  • logistics

  • professional services

Clear Comparison Chart: Upskilling vs Reskilling

Element Upskilling Reskilling
Goal Improve an existing skill Learn a completely new job
Ideal Profile High-performing employee seeking growth Employee in a role at risk of automation
Advantage Immediate productivity boost Fills hard-to-recruit positions
HR Impact Stronger team efficiency Improved internal mobility

Why These Strategies Are Critical for the Canadian Market in 2026

1. Reducing Recruitment Costs

In Canada, hiring a new employee can cost four to six times more than training an existing one.
For specialized positions, the cost is even higher.

Upskilling and reskilling reduce the need for:

  • lengthy recruitment cycles

  • onboarding delays

  • mis-hires and turnover risks

2. Preventing Skills Obsolescence

With AI, automation, and digital transformation accelerating rapidly, many roles become outdated within two to five years.

Reskilling provides a human and sustainable solution, enabling employees to:

  • transition out of declining roles

  • enter new, high-value-added positions

3. Strengthening Talent Retention

Canadian employees increasingly value:

  • growth opportunities

  • continuous learning

  • employers who invest in their future

Organizations that offer internal development programs see significant improvements in retention, especially among younger generations.

4. Enhancing Employer Brand

Companies known for supporting employee learning and long-term career growth attract better talent in a competitive hiring landscape.

How to Build an Effective Internal Skills Development Strategy

1. Identify Future Skills Needs (Workforce Planning)

Before training begins, organizations must determine:

  • what skills will be essential in 1, 3, and 5 years

  • which roles are at risk due to automation

  • which teams consistently lack qualified candidates

This requires:

  • internal skills audits

  • discussions with managers

  • forecasting labour market trends

2. Assess Current Skills

Canadian organizations typically use:

  • performance reviews

  • self-assessments

  • technical skill evaluations

  • career development discussions

The goal: clearly define the gap between current skills and future requirements.

3. Build Effective Training Programs

High-performing organizations use a blended approach:

A. Blended Learning

Online courses + in-person workshops + coaching.

B. Experiential Learning

Stretch assignments, job rotations, mentorship programs.

C. Leveraging Canadian Funding Programs

Provincial and federal programs help fund skills development, including:

  • Employment and Social Development Canada (ESDC)

  • Provincial workforce training grants

  • Canadian upskilling initiatives for digital skills

4. Measure the Program’s Success

Key performance indicators include:

  • retention rates after training

  • number of internal promotions and role changes

  • productivity improvements

  • employee engagement levels

These indicators help HR refine programs for maximum ROI.

Why Canadian Companies Can No Longer Ignore Upskilling and Reskilling

  • Labour shortages are expected to persist until 2030

  • Digital and tech skills evolve too quickly to rely solely on external recruitment

  • Employees want growth — or they leave

Internal skills development is now a major competitive advantage for Canadian employers.

Conclusion: Train Today to Keep the Talent of Tomorrow

Upskilling and reskilling have become essential strategies for organizations across Canada.
They help:

  • reduce recruitment costs

  • fill high-demand positions

  • strengthen employee loyalty

  • ensure long-term organizational resilience

Investing in your people means investing in the stability, performance, and growth of your business.

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Sirine Hmaied

Spécialiste paie et ressources humaines

Détentrice d’un baccalauréat en administration des affaires, elle cumule plus de trois ans d’expérience en gestion de la paie au Canada, avec une expertise approfondie en rémunération, conformité légale et processus de paie. Actuellement en voie d’obtenir son accréditation en paie canadienne (PCP – Payroll Compliance Practitioner), elle investit activement dans son développement professionnel afin de rester à jour sur les évolutions réglementaires et technologiques du secteur.

Forte également d’une expérience en ressources humaines, elle se distingue par sa polyvalence, sa rigueur et sa compréhension globale des enjeux administratifs, organisationnels et humains en entreprise.

En dehors de ses fonctions, elle pratique le tennis, une discipline qui développe la concentration, la précision et l’esprit de compétition — des qualités qu’elle met aussi au service de ses missions.

Sabrina Mendili

Conseillère en acquisition de talents

Titulaire d’un baccalauréat en relations industrielles, Sabrina possède une expertise en recrutement, acquisition de talents et consultation RH, développée au cours des deux dernières années dans le secteur des ressources humaines. Elle accompagne les organisations en alignant les stratégies de recrutement sur les objectifs d’affaires, avec une approche centrée sur l’humain et axée sur la performance.

Reconnue pour son énergie, sa détermination et son sens de l’écoute, elle excelle dans la création de relations solides et dans l’identification des meilleurs profils pour répondre aux besoins spécifiques des entreprises.

En dehors de ses fonctions, elle se ressource grâce au yoga et aime relever de nouveaux défis professionnels et personnels avec curiosité.

Sabrina Mendili

Talent Acquisition Consultant

With a Bachelor’s degree in Industrial Relations, Sabrina has developed expertise in recruitment, talent acquisition, and HR consulting over the past two years in the human resources sector. She helps organizations align recruitment strategies with business objectives, always with a people-first and performance-driven approach.

Known for her energy, determination, and strong listening skills, she excels at building meaningful relationships and identifying the right talent to meet each organization’s unique needs.

Outside of work, she finds balance through yoga and embraces new professional and personal challenges with curiosity.

Sirine Hmaied

Payroll and Human Resources Specialist

Holder of a Bachelor’s degree in Business Administration, she has over three years of experience in payroll management in Canada, with in-depth expertise in compensation, legal compliance, and payroll processes. Currently pursuing her Canadian Payroll Compliance Practitioner (PCP) certification, she is committed to ongoing professional development to stay current with industry regulations and payroll technology trends.

With additional experience in human resources, she is recognized for her versatility, attention to detail, and comprehensive understanding of organizational, administrative, and human challenges within companies.

Outside of work, she enjoys playing tennis — a sport that enhances focus, precision, and a competitive mindset, which she also applies in her professional role.

Jessica Gershonovitch

Conseillère en Acquisition de talents

Titulaire d’un baccalauréat en psychologie et d’un diplôme postuniversitaire en gestion des ressources humaines, Jessica possède une solide expertise en RH, enrichie par des expériences en Ontario et au Québec. Avec plus de sept ans d’expérience dans divers secteurs, elle a accompagné des entreprises de toutes tailles, de PME en croissance à de grandes organisations.

Reconnue pour son professionnalisme, son sens de l’initiative et sa capacité à créer des liens solides, elle conçoit des solutions sur mesure pour aider les entreprises à attirer les meilleurs talents et favoriser leur croissance.

En tant que consultante en acquisition de talents, elle allie compréhension humaine et stratégie organisationnelle pour garantir un excellent alignement entre candidats et clients.

Chaleureuse et dynamique, Jessica est passionnée par les relations humaines, adore rencontrer de nouvelles personnes et relever de nouveaux défis avec enthousiasme.

Jessica Gershonovitch

Talent Acquisition Consultant

With a Bachelor’s in Psychology and a postgraduate diploma in Human Resources Management, Jessica brings strong expertise in HR, shaped by her experience in both Ontario and Quebec. Over the past seven years, she has worked across various industries, supporting companies of all sizes—from growing mid-sized businesses to large, established organizations.

Jessica is recognized for her professionalism, initiative, and exceptional relationship-building skills. She delivers tailored recruitment strategies that help businesses attract top talent and drive growth.

As a Talent Acquisition Consultant, she combines a deep understanding of people, roles, and business needs to create perfect matches between clients and candidates.

Outside of work, Jessica is warm, energetic, and passionate about building meaningful connections. She enjoys meeting new people, spending time with loved ones, and embracing new adventures with a contagious enthusiasm.

Fiorenza Capitanio

Spécialiste de la paie et avantages sociaux

Professionnel de la paie et des ressources humaines avec plus de 20 ans d’expérience en paie, avantages sociaux, rémunération et comptabilité.

Fiorenza est titulaire d’un baccalauréat en programmation. Elle tombe amoureuse de la comptabilité et de la paie et obtient un diplôme professionnel suivi d’une certification de spécialiste de la paie.

Ayant une solide expérience en programmation, elle excelle dans l’implantation de nouveaux systèmes de paie. Elle est trilingue (anglais, français et italien) et a travaillé avec des multinationales s’occupant de la paie dans toutes les provinces canadiennes et dans plusieurs pays. Elle possède une connaissance approfondie des processus de paie, des législations et de la conformité.

Son adaptabilité et ses compétences en résolution de problèmes font d’elle une ressource de confiance pour toute organisation cherchant à rationaliser et optimiser ses opérations de paie.

En dehors du travail, vous la trouverez dans la cuisine en train de cuisiner pour la famille et les amis. Pendant son temps libre, elle aime chanter et découvrir de nouveaux endroits.

Fiorenza Capitanio

Benefits & Payroll Specialist

Fiorenza is a seasoned Payroll & Human Resources professional with over 20 years of experience in payroll processing, benefits administration, compensation, and accounting. She holds a bachelor’s degree in programming, which has given her a strong technical foundation in payroll system implementation and optimization.

Her passion for accounting and payroll led her to earn a professional degree, followed by a payroll specialist certification. Throughout her career, she has worked with multinational corporations, managing multi-country and Canadian provincial payrolls. As a trilingual expert (English, French & Italian), she effectively navigates global payroll regulations, ensuring compliance with payroll legislations and tax requirements.

Fiorenza’s problem-solving skills and adaptability make her a valuable asset to organizations seeking to streamline payroll operations and enhance efficiency. Her deep expertise in payroll compliance and system integration positions her as a trusted payroll consultant in the industry.

Beyond work, Fiorenza enjoys cooking and baking for family and friends. In her free time, she loves to sing and explore new destinations.

Pascale Guichard

Consultante Acquisition de talents

Pascale a occupé plusieurs postes en tant que Consultante en acquisition de talents. Elle a aussi été coach carrière et conseillère juridique en droit de l’emploi. Elle est spécialisée dans le recrutement corporatif de cadres exécutifs et professionnels ainsi que dans le recrutement pour l’industrie juridique. Pascale est passionnée par les ressources humaines et le recrutement ainsi que par l’enseignement qu’elle a pratiqué durant plus de 10 ans en France où elle enseignait en droit de l’emploi et les RH. Quand elle ne travaille pas, Pascale aime voyager, cuisiner, la marche et la randonnée et passer beaucoup de temps avec son mari et ses amis. Pascale est très dévouée et elle aime particulièrement accompagner les candidats dans leur recherche d’emploi et les guider dans les meilleurs choix de parcours professionnel. Elle est reconnue pour l’excellence de son service envers ses clients et les candidats.

Pascale Guichard

Talent Acquisition Consultant

Pascale has held several positions as a Talent Acquisition Consultant. She has also been a career coach and legal advisor in employment law. She specializes in corporate recruitment of executives and professionals as well as in recruitment for the legal industry. Pascale is passionate about human resources and recruitment as well as teaching, which she practiced for over 10 years in France where she taught employment law and HR. When she is not working, Pascale enjoys traveling, cooking, walking and hiking, and spending a lot of time with her husband and friends. Pascale is very dedicated and she particularly enjoys supporting candidates in their job search and guiding them in the best career path choices. She is recognized for the excellence of her service to her clients and candidates.