Organizations around the world are facing a growing skills crisis. From generative AI to automation, the rapid pace of change has altered the skill sets required for jobs by 25% since 2015. And this rate is expected to double by 2027, meaning that finding the right talent will continue to be a key challenge for businesses globally.
In response, some organizations are undertaking a radical re-think of how they structure roles and responsibilities, how they hire, and how they develop talent. The result is a complete re-imagining of what it means to be a skills-based organization.
One way that organizations are striving to be more agile is by evolving their thinking about work—from static jobs to dynamic work where skills are learned and applied in a more fluid way. Skills do not exist in isolation. They must be considered in the context of the whole person and whole company. It’s not just what someone’s skills are, but how they are used.
Transitioning to a skills-based organization provides leaders with a unique opportunity to place skills at the heart of talent strategies. But for this transition to be successful, talent strategies must be aligned with business strategies. This is your guide for determining if this transformation is right for your organization, what to expect, and how to get started.
What is a skills-based organization?
A "skills-based organization" is more than a buzzword—it’s a major shift in how a company thinks about its people, work, and business strategy.
What does it mean to be a skills-based organization? For some organizations, it’s as straightforward as placing skills at the heart of talent strategies. This is a start, but it’s much more. To truly redefine your organization as “skills-based,” consider the following.
A skills-based organization recognizes that people have a wide range of unique skills, capabilities, and mindsets that can be utilized to succeed in various roles. These organizations also understand that a focus on technical abilities is just one part of the bigger picture: they consider the individual as a whole person, how this individual fits within their organization, and the work that needs to be done today and tomorrow.