Using a skills strategy to boost business success

An approach to workforce planning that forecasts the skills required to meet desired business outcomes. It focuses on the skills required rather than the existing or pre-defined job roles. Skills-based workforce planning allows you to understand your workforce as the sum of its parts – analysing the current skills, where they can be deployed and what future skills are required.

Where to start:

• Building a skills taxonomy or common language for skills
• Map out the skills of your workforce using AI and/or self-service mapping/assessment
• Enhance your skills taxonomy with skills adjacency maps
• Predictive skills gap analysis
• Create skill profiles for key business areas and prioritise gaps and in demand skills
• Implement skills utilisation tracking using HR system and WFM tools

Organisations that have implemented these types of solutions are able to:

• Articulate the workforce’s current skills, the future skills needed (medium/long term) and the skills gap
• Implement learning and development plans to re-skill/upskill their workforce to meet both future skills demands and CSR/legal requirements
• Have high quality data, data analysis, performance and productivity metrics

This describes the shift towards sourcing your internal and external talent based on skills rather than previous job titles, experience, or formal educational attainment. This approach broadens your potential talent pool and emphasises assessing potential.

Where to start:

• Determine the breadth of your skills-based hiring approach – consider starting with a particular skill or function that has high demand or scarcity
• Ensure your ‘job ads’ or talent marketing matches what work is required (see Work design below)
• Consider skills-based profiles for work packages / projects / gigs
• Remember to emphasise skill development and skills benefits to attract candidates
• Redesign your selection process; including screening, skills mapping, interviews and assessments
• Leverage existing technology/ATS with skills capability or consider integrating skills assessment platforms
• Upskill and enable your hiring managers through training, robust feedback frameworks and skill validation checklists

Organisations that have implemented these types of solutions are able to:

• Be more targeted in their talent search for skills
• Increase the talent pool through skill mapping and adjacency
• Provide a more diverse talent pool
• Improve quality of talent pipeline
• Improve efficiency and time to hire

Work-design is a dynamic approach that requires organising roles and responsibilities by skills and competencies required to perform the work, including where technology can reduce workload.  This means that capacity can be re-focused into re/upskilling or even other project-based work.

Where to start:

• Identify key skills required for each function e.g., technical and soft skills
• Create a skills map of your organisation that outlines the capabilities available across the workforce
• Visualise current skill gaps and overlaps
• Redefine job roles to align with skills rather than traditional roles
• Prioritise skill-based development over general training
• Shift hiring practices to focus on skills and potential rather than just educational qualifications or past job titles

Organisations that have implemented these types of solutions are able to:

• Improve employee engagement by recognising and developing their individual skillset
• Enable autonomous learning and career progression
• Leverage skills across different projects and departments
• Utilise the skills of their workforce more effectively by avoiding overstaffing or external resourcing
• Encourage continuous learning, ensuring that employees develop future-relevant skills
• Bring diverse skills together, fostering innovation through varied perspectives and expertise

Ultimate talent mobility allows people with the relevant skills to move around the organisation to where they are needed both to deliver the work and continue to build their own skills. This can look different in each organisation – for example having one day a week on a new project can build skills and experience, or you may have employees undertaking short to long term projects sequentially.

Where to start:

• Create skill-based roles and pathways, allowing employees move to new projects or roles
• Leverage skills tools and/or internal communication to ensure resource can be matched to work
• Equip managers to have meaningful discussions with employees about skills-based career development
• Coach leadership and line managers through the mindset shift of sharing talent
• Work on embedding a culture of continuous learning, building skill building into daily work
• Refine your approach and pathways over time based on employee feedback and mobility effectiveness
• Celebrate successes and incentivise employees and managers who actively engage in talent mobility

Organisations that have implemented these types of solutions are able to:

• Quickly align workforce skills with evolving business needs
• Improve employee engagement and retention through meaningful growth opportunities
• Optimise talent utilisation by placing the right skills in the right roles at the right time
• Enhance organisation agility and responsiveness in a dynamic market
• Strengthen collaboration and knowledge-sharing across teams
• Use data to predict and manage skills demand and workforce trends

Individualised approach to employee learning that prioritises practical, applicable skills over general knowledge, leading to more targeted and effective learning. Done right, it can produce tangible benefits for both employees and their organisations.

Where to start:

• Create personalised learning plans based on individual skills gaps, strengths, and career aspirations
• Prioritise engaging practical training methods such as industry-specific case studies, current projects, AI simulations and mentorship opportunities
• Incorporate core skills and behavioral competencies as well as technical skills
• Encourage an environment where ongoing skill development is valued and supported
• Offer cross-functional projects, skill-based task forces, or shadowing opportunities to allow employees to actively use their training

Organisations that have implemented these types of solutions are able to:

• Create environments where employees feel supported in their professional growth, boosting job satisfaction and retention
• Reduce skill gaps faster by targeting individualised learning paths, and boost cross-functional skills and understanding
• Increase productivity by developing employee skills that directly impact their performance, leading to more efficient and effective work
• Stay agile and innovative for industry shifts as skills-based learning keeps the workforce flexible

Incentivising the acquisition of new skills (or using them) through recognition or monetary reward. This can be further enhanced by embedding skill building to be recognised in the performance management cycle.

Where to start:

• Design a rewards structure that recognises skill acquisition through monetary bonuses, additional benefits, additional career opportunities or public recognition
• Create a performance framework where employees are set specific skill-based goals and receive feedback
• Develop a competency framework that reflects the skills needed at each level
• Ensure employees have the resources and support they need to develop new skills
• Partner with training providers, offer internal workshops and/or create an online learning library
• Develop a system within the HR portal or an internal communications platform where skill achievements can be shared

Organisations that have implemented these types of solutions are able to:

• Align employee development with strategic goals, improving performance outcomes
• Motivate employees to continuously upskill and build relevant competencies
• Increase employee engagement and satisfaction by recognising skill growth
• Enhance transparency around growth opportunities with clear skill milestones and rewards