Highlights:
- “Organizations need a fusion of fresh ideas through hiring and continuous growth through upskilling,” said Abhisekh Rudra, Head of HR, Reliance Industries Limited.
- “The stronger an organization’s learning framework, the greater its potential to upskill and grow from within,” Rudra added.
- “Upskilling not only improves capability and agility but also strengthens engagement and retention,” noted Soumi Chakrabarty, Group General Manager – HR, Mahavir Group.
- Chakrabarty emphasized that continuous learning and flexibility will be key for organizations to stay competitive in the future of work.
The debate between hiring fresh talent and upskilling existing employees continues to divide leaders and HR professionals alike. In today’s fast-paced world of work, where skill demands shift faster than ever, companies constantly encounter a critical question: bring in new talent or invest in nurturing the talent that’s already within?
Both approaches come with their own advantages and trade-offs. A great hire can spark innovation, introduce fresh perspectives, and elevate team performance but a wrong one can cost far more than we imagine, in both resources and morale. Upskilling, on the other hand, builds loyalty, strengthens internal capability, and preserves valuable institutional knowledge, yet it requires time, consistency, and strategic intent.
The real challenge isn’t about choosing one over the other but about knowing when to hire and when to build from within. Let’s decode how organizations can find that balance and which approach truly fuels long-term growth.
The case for hiring vs upskilling
The benefits of hiring new talent are well known. Unlike upskilling, there’s always a risk that employees you invest time and resources in may move on. In such cases, bringing in new talent can be a more practical choice. Here are a few other situations where hiring makes the most sense:
- You need immediate expertise: For technical or leadership roles that require niche skills, such as AI, analytics, or digital transformation, hiring someone with proven experience can save valuable time and deliver instant results.
- You want fresh perspectives: New hires often bring different ways of thinking, challenge old habits, and drive innovation across teams.
- Internal talent isn’t ready yet: When no one in the current team is ready to take on an important role, and training them would take too much time or effort, hiring from outside helps keep things moving without delays.
- You’re leading through change: When the company is going through a major shift, such as a digital transformation or business expansion, hiring people who have handled similar transitions before can help the organization adapt faster and more smoothly.
On the other hand, upskilling comes with its own set of advantages. Companies that invest in employee development often see higher engagement, stronger loyalty, and better retention. Over time, this also helps reduce recruitment costs and build a more committed workforce.
Here are a few situations when upskilling makes the most sense:
- You want to save costs: Upskilling is often more cost-effective than hiring. Recruitment involves expenses at every step, from job postings and interviews to onboarding and training new hires. Upskilling existing employees can reduce these costs while strengthening loyalty.
- You have high-potential in-house talent: In a world where technology keeps evolving, hiring for every new skill isn’t always the best option. It’s smarter to invest in upskilling high-potential employees so they’re prepared to take on bigger roles as business needs grow.
- You want smoother change management: For roles in which understanding company culture, processes, or history matters, upskilling existing team members ensures a smoother transition and greater stability.
- You want to boost retention: Employees are more likely to stay with organizations that invest in their learning and development. According to Deel’s Skilling and Upskilling Survey 2025, 61% of Gen Z employees say that chances to learn new skills strongly affect their decision to stay with an employer, showing how important upskilling is for keeping talent.
Expert insights
We spoke to HR experts to understand how organizations can strike the right balance between hiring new talent and upskilling existing employees. Here’s what they had to share:
Balance hiring and development: Growing an organization requires both new ideas from fresh talent and the development of existing employees. Abhisekh Rudra, Head of HR, Reliance Industries Limited, highlights the importance of maintaining this balance.
“As an organisation we need to keep a balance between hiring and upskilling existing employees. In order to grow faster, we have to have a fusion of fresh ideas, practices, concepts through hiring. On the other hand, upskilling of the workforce may be achieved through learning initiatives, managing attrition, defining career paths and succession planning,” he adds.
Abhisekh also emphasizes that the strength of a company’s training system plays a key role in deciding whether upskilling or hiring should take priority.
“This depends on how strong an organization’s training and development system is. The more an organization is prepared to unlearn and relearn through a structured learning framework, the greater the opportunities for upskilling. If such a system is not in place, the company will need to rely more on hiring to bring in new skills, knowledge, and practices to keep up with industry standards,” he explains.
Upskilling for growth and retention: While Abhisekh emphasizes a balanced approach between hiring and upskilling, Soumi Chakrabarty, Group General Manager – HR, Mahavir Group, has a clear perspective on where companies should focus their efforts. She believes that upskilling existing employees is a key driver of sustainable organizational growth.
“Not only does it improve capability and agility but also reinforces engagement and retention, “she explains. Looking ahead, Soumi adds that the future of work will increasingly depend on upskilling as continuous learning and flexibility will be critical factors for organizations to remain competitive in a rapidly changing environment.
These insights show there’s no one-size-fits-all approach. The right strategy depends on a company’s culture, growth stage, and learning readiness and on building a talent ecosystem that balances external expertise with internal strength.
Key factors in the hire vs. upskill decision
Ultimately, deciding between hiring new talent and upskilling existing employees depends on several factors:
- Immediate business needs: Does the role need to be filled quickly, or can the organization afford time for development?
- Budget: Consider the costs of hiring versus investing in upskilling.
- Long-term goals: Align the approach with your strategic vision and workforce plans.
- Time investment: Upskilling, especially for technical or senior roles, can take time. Can your team wait?
- Skill gaps: Some roles may require expertise that is difficult to develop internally.
- Executive requirements: Senior positions often need proven experience in managing and building teams.
- Cultural fit: New hires may take time to adjust, and misalignment can affect retention.
Final thoughts
To make the best decision, assess the requirements of the role, evaluate your internal talent to see who could be upskilled, and consider your timeline. By carefully weighing these factors, organizations can find the right balance between hiring and upskilling and choose the strategy that will drive growth, capability, and long-term success.
