For centuries, companies have structured their operations around defined job roles with specific tasks and responsibilities. Our job titles are a defining aspect of our identities. But the nature – and, therefore, the structure – of work is changing.
“Historically, having a job description with a clear set of tasks that are stable for a significant time period has been the unit of analysis for HR, talent management, and workforce planning. But that model has worn out,” says Jeff Schwartz, Vice President of Insights and Impact at software company Gloat.
As new technologies drive urgent change to company requirements, a skills-powered approach is emerging as the future of workforce strategy. This approach takes a granular view of the different capabilities available within the workforce, regardless of how these are parceled up by role and function. It also considers current and future skills demand to understand how to drive the business forward. Combining these allows companies to allocate resources more efficiently, matching employees with the most appropriate new opportunities and, in doing so, preparing for macro-trends that will reshape talent management.
But a skills-powered strategy is only as effective as its implementation. Technology is a crucial enabler.
Skills platforms provide executives with the clear visibility of workforce capability that they need to plan effectively in rapidly evolving environments.
The benefits of a skills-powered approach are significant, but getting to them requires substantial data and a central repository in which to house it. Next-generation platforms integrate advanced analytics and AI to offer business leaders real-time insights, enabling them to deploy talent strategically and efficiently.
Tech companies are bringing this concept to life by developing platforms that use AI and advanced data architecture to capture employee skills, experience, and career goals, and applying AI and talent marketplaces to map capabilities against live business needs.
“This allows organizations to redeploy talent more quickly, keep employees engaged, and maintain an up-to-date skills dataset without the heavy manual upkeep that often derails transformation efforts,” says Mike Worthington, Gloat’s Global Vice President of Solution Consulting.
Most companies are exploring how technologies such as AI can help streamline workflows and boost productivity. This impulse should also be part of a skills-powered approach.
Skills platforms provide executives with the clear visibility of workforce capability that they need to plan effectively in rapidly evolving environments. They can quickly see where gaps exist – and which ones AI and reskilling can fill. They can also see where technology could free up workforce capacity for higher-value activities.
This dual perspective sharpens investment decisions, ensuring transformation efforts and technology spend to deliver maximum impact. “These tools can provide intelligence on how an organization can adapt – whether through people using technology more effectively or through automation driving change,” explains Worthington.
Internal resistance is one of the greatest barriers to transformation. It can lock companies in the status quo, even if that no longer serves them. Concerns are often rooted in misconceptions, and this applies equally to skills platforms.
A common but mistaken belief is that systems require endless manual data entry and significant resources. On the contrary, modern platforms remove much of the burden from employees. “Self-learning systems continuously update themselves based on employee activity, new opportunities, and market intelligence. The AI does the heavy lifting,” says Schwartz.
Nevertheless, many fear AI will reinforce bias and existing inequalities. But Worthington is clear that this couldn’t be further from the truth: “Matching is based solely on skills and capabilities, excluding personal attributes like age, gender, or ethnicity. Algorithms can be designed to remove bias-prone attributes.”
“The most successful skills-powered strategies are driven by the C-suite. When senior executives designate a business priority, managers and employees listen.”
Despite its potential, technology cannot on its own deliver a successful skills-powered approach. New platform implementation must be carefully planned to maximize investment and impact. We recommend five steps to reinforce your strategy:
“A blind alley that many companies go down is creating a skills inventory without a focus on what to do with that data,” says Schwartz. Leaders need to define how their skills intelligence will drive transformation strategies. For example, how will it inform upskilling initiatives or enable employees to explore new career opportunities?
Companies are prone to drawing up ambitious visions without considering whether they have the technical wherewithal to support them. Early engagement with vendors can validate these plans, highlight pitfalls such as data silos, and ensure companies follow best practices.
Executives have limited time and must juggle competing priorities, but persuading them to invest in the skills-powered approach is essential to strategic success. Champions of this approach must speak their language, highlighting the link between skills transformation and wider commercial outcomes. Showcasing strong ROI will spark senior-level engagement.
The most successful skills-powered strategies are driven by the C-suite. When senior executives designate a business priority, managers and employees listen. Leaders can also frame the change as offering opportunities for professional growth, rather than simply placing an additional administrative burden on employees.
Even with executive pressure and clear career benefits, employees may resist if platforms are unintuitive or time-consuming. “Companies should design their skills platforms for the employee, not the organizational chart,” stresses Schwartz. “They need to make skills visibility a part of the day-to-day employee experience, so people naturally engage without doing extra work.”
When these elements align, companies can deploy skills where they matter most, preparing for disruption and unlocking new levels of productivity.
A skills-powered strategy promises efficiency, agility, and employee empowerment. Technology and organizational change are what make it all possible.
By embedding AI in strategy, organizations gain enhanced insights into in-house skills and deficiencies. Intuitive, employee-centric platforms, similar to consumer apps, make it easier to identify and facilitate matches between employees and opportunities. And with real-time updates, organizations can optimize talent management at the pace the business requires.
When these elements align, companies can deploy skills where they matter most, preparing for disruption and unlocking new levels of productivity and innovation for the company as well as new career pathways for employees.
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