100% of software engineers who don't keep their skills sharp become obsolete[*]. Many who do keep their skills sharp also become obsolete. It all boils down to what skills they focus on.
I divide skills into three main categories: company-specific, job-specific, and universal. This categorization makes it easy for me to decide where to invest my time when it comes to skill development.
Company-specific skills
Each company has internal infrastructure, processes, and tools. Knowing them before joining the company is impossible, but everyone must learn them after joining.
Being strategic about what to focus on can save you a lot of time. Company-specific knowledge and skills are, by definition, not transferable. You need to learn them to do your job, but they become useless the moment you move on.
My strategy is to have a solid understanding of company-specific tools and processes but not dive too deeply unless I have to. Being in the dark will slow me down, but drilling into all the details is not much better. Most of these things constantly change, and I will quickly forget what I don't use. Instead, my time is better spent developing other, more general skills.
When I worked at Microsoft, I had a colleague named Ben. Ben was the most knowledgeable person I knew when it came to the .NET Framework build system. Although he was not on the build team, he knew all the scripts, hacks, and environment variables used in this build system. Acquiring and keeping this knowledge fresh ate much of Ben's time. Having Ben around was great for the team. We could (and constantly did) ping him for help with build-related issues. Eventually, Ben moved to a different team outside our organization. His expertise evaporated instantly, even though he didn't go far.
Job-specific skills
Job-specific skills are usually the skills that get us hired. Companies look for people who can hit the ground running, and having skills in demand increases the chances of getting hired substantially.
Job-specific skills are transferable. You learned them before getting hired and may use them in your next job. There is a caveat, though. It is only true if you keep your skills up-to-date. Knowing React and knowing React-as-of-four-years-ago is not the same thing.
I learned that trying to keep skills sharp just by using them at work doesn't always work. Companies rarely move as fast as technology. For instance, the product you work on might have been on the bleeding edge a few years ago. But it got stuck there because there was never a good enough business reason to migrate it to the newest framework version. You still need to maintain it but can't use the latest features.
Another thing to pay attention to is the signs that the technology you specialize in is becoming obsolete. Some technologies are more durable, but some can fade fast. You don't want to wake up one day only to realize that everyone except you has moved on.
CoffeeScript was one of the most followed projects on GitHub in the early to mid-2010s. It was incredibly popular, and there was a lot of hype around it. Today, hardly anyone remembers it.
Even if you got hired for your job-specific skills, it doesn't mean you can't learn new skills on the job. If you want to develop a new skill, you may consider joining a new project or moving to a different team. It isn't always easy because you don't have the skills they need, but it is doable - especially if you are known as someone who learns fast.
And the biggest secret: not only do you develop a new skill that may land you your next job, but you are also paid to do this.
Universal skills
Finally, there are the universal skills. These are skills that never become obsolete. You can use them at your current job, at your next job, or for non-work-related purposes. You can also apply them instantly.
These are skills like writing, effective time management, delivering great presentations, etc.
The biggest problem with universal skills is that developing them never seems urgent. As a software developer, you will not lose your job because you write lengthy emails. But eventually, you may hit a glass ceiling and realize that what inhibits you is not coding but the lack of these universal skills.
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* - citation needed
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