Where Do Skills Live?

The skills-based approach has taken center stage in recent years, moving away from restrictive structures of work we’ve all experienced for the last century. More than 1,200 professionals and organizations look to skills for a holistic view of individual roles and teams altogether.

Traditionally, skills have been seen as tied to specific job titles. This approach can be limiting. It restricts employee growth and makes it difficult to identify the right talent for cross-functional projects.

But in a skills-based world, where exactly do these skills reside? Are they siloed within departments, locked away in individual employees, or is there a more holistic approach?

The answer: everywhere.

Shifting from Jobs to Skills

The world of work is changing rapidly. Organizations are increasingly looking for employees who have a wide range of skills, not just those that are specific to a particular job. Soft skills, in turn, continue to grow in value.

The rise of artificial intelligence (AI) means that many traditional jobs are disappearing, and employees have new priorities. This means we must shift our talent strategy to focus on how we get humans to work harmoniously with AI.

Employers benefit from a skills approach through increased employee satisfaction and retention. Prioritizing humans in your organization, rather than job titles, creates a shared purpose for all workers within your organization. According to Gartner, “82% of employees say it’s important for their organization to see them as a person, not just as an employee.”

Skills-based hiring has been especially effective for organizations in recent years. For example, since the “death of the degree” – companies letting go of degree requirements in favor of skills – skills have been “five times more likely to predict performance” than education (source).

Aside from improving employee retention, performance, and increasing the economic success of a company, skills initiatives promote DEI initiatives that are crucial in today’s competitive business landscape. Requiring college degrees eliminates 76% of Black adults and 83% of Latino adults with the right skills for a position (source).

For organizations overall, upskilling employees using skills is 107% more likely to result in effective talent placement (Deloitte). It ultimately creates a more agile company and employees.

Skills – A Holistic Approach

A skills-based approach recognizes that skills are not the property of individual employees or departments. They are the shared responsibility of the entire organization.

The traditional framework, with skills neatly compartmentalized within specific departments or roles, is fading fast. In Deloitte’s report, “The skills-based organization: A new operating model for work and the workforce,” we see that that skills now must be much more fluid and all-encompassing.

1. Skills Span HR Functions: Talent acquisition specialists need recruiting and market analysis skills; while learning and development professionals require instructional design expertise. This interconnectedness extends throughout the organization.
2. HRBPs are the Skills Connectors: HR Business Partners (HRBPs) act as a bridge between HR and different business units. Their role requires them to understand the unique skillsets needed across the organization and translate HR strategies into actionable plans for each department.
3. HR Technology Facilitates Skill Flow: HR technology streamlines processes and allows for better data analysis of the workforce’s skills. This data can then be used to identify skill gaps and ensure the right talent is deployed to the right projects, regardless of departmental silos.

In essence, the skills that power an organization don’t reside in a single place – they are a collective resource. HR plays a critical role in fostering this by developing a skills inventory, encouraging cross-functional collaboration, and providing learning opportunities to cultivate skills.

By embracing a skills-based approach and leveraging HR’s expertise in talent management and development, organizations can create a dynamic and agile workforce where skills flow freely to meet strategic goals.