The rapid adoption of digital technologies is changing the skills required by employees and increasing pressure on small and medium-sized enterprises (SMEs) to develop a workforce that can adapt to technological change. This article examines the role of reskilling and upskilling in enhancing employee employability in technology-based industries among SMEs in Lombok, West Nusa Tenggara (NTB). The study uses a qualitative literature-based approach, drawing on recent international and Indonesian policy literature on digital transformation, workforce skills, employability, SMEs, and lifelong learning. The analysis indicates that reskilling and upskilling contribute to employability through three interconnected mechanisms: strengthening technical and digital competencies, improving adaptive and transferable capabilities, and increasing employees’ ability to move across tasks, occupations, and changing business models. For SMEs in Lombok, the importance of these practices is amplified by resource constraints, limited access to specialized talent, uneven digital maturity, and the geographic dispersion of businesses. The article further argues that training should not be limited to software operation or basic digital literacy. It should integrate technological literacy with analytical thinking, communication, problem solving, customer orientation, cybersecurity awareness, and continuous learning. A contextualized SME skills ecosystem involving business owners, employees, local government, vocational and higher-education institutions, technology providers, and industry associations is therefore needed. The article concludes that reskilling and upskilling should be treated not merely as training activities but as strategic human resource practices that support both employee employability and SME competitiveness.