A rapidly shifting geopolitical environment coupled with the fast pace of technological advancements are having a significant effect on the availability of and requirements for specific skills. This is creating a new suite of challenges for organizations as they manage their talent pool.
To ensure their organizations have the talent they need and can provide employees with the necessary skills to thrive and drive company and individual growth, organizations need to take a skills-first approach when designing their people programs.
Identifying and developing the specific skills needed for organizations to be successful is at the heart of a skills-first approach. Continually assessing skill requirements and providing targeted training and development opportunities bridges the gap between organizational need and employee abilities.
With a skills-first approach, organizations optimize their human capital investment by ensuring that employees possess the necessary skills to effectively perform in their roles through upskilling and reskilling. Organizations also can secure the knowledge, talent, processes and automation needed to align with long-term objectives.
Ultimately, a skills-first approach positions employers to better attract and retain top talent and ensures that they are well-positioned to meet their business objectives in the face of quickly changing external factors and influences.
Before leaping into the actual tactics of a skills-first approach, organizations must adopt and socialize an overarching perspective that focuses on a holistic career ecosystem. This ecosystem links the foundational components of people programs (e.g., job architecture, job leveling, skills architecture). A career ecosystem also connects business objectives with how jobs are organized as well as how performance is measured and rewarded (Figure 1).
Identifying and categorizing skills based on the organization’s job architecture and levels ensures clarity on the skills that are needed within various parts the organization. Then, employee skills assessments can provide additional data on skills that currently exist within the organization. At the individual level, it helps employees to have a clear understanding of their career paths and development opportunities. Think of the career ecosystem as a mechanism to bring careers and skills to life, unlocking employees’ and candidates’ understanding of careers by providing a clear link between job architecture and job leveling.
With this link, you then have a mechanism to understand and forecast your organization’s needs based on the work being done. Once you know the skills required for different roles, you can better align your organization’s workforce planning, hiring strategies and development programs to meet those needs. In turn, you will stay ahead of your competitors in growing your talent pool, enhance opportunities for existing employees, and position your organization to find the best talent to meet future needs.
To shift this to a skills-first orientation and following on the foundation of a career ecosystem, you will need a comprehensive strategy that optimizes your approach to skills development:
Once an organization has a robust knowledge architecture in place, the following steps will ensure a successful implementation of your skills-first approach.
Prioritizing skills is a must for any organization that wants to successfully adapt to and grow in a continually changing world. When designed and deployed effectively, skills-based ecosystems can create and democratize opportunities, helping employees to develop the skills and knowledge they need to continue to perform well. In exchange, organizations will achieve their objectives and navigate through and thrive in any new challenges that arise.