31 Oct Skills Economy
The big questions most executives are asking themselves are: Is our company talented enough? Do we have the people and skill sets we need to achieve our business objectives? Not having the skills needed is the biggest risk. Embracing the skills economy is the new way to think and perform. But what does it mean?
The “skills economy” is a transformational shift in how businesses and individuals think and perceive professional value and success. It challenges the significance of traditional job titles and credentials highlighting individual skills and potential instead.
Rather than thinking about jobs, organizations must focus on the specific tasks that need to be carried out, and the skills needed to do them. In other words, companies need to adopt a skills-based approach which consists in always being aware of what everyone is capable of or capable of learning. In this context, skills become more important than previous education or other professional experiences or network. This approach also improves diversity, broads the talent pool and enables the total talent agility that companies need if they want to stay competitive. Being able to move people around as the situation requires becomes crucial.
An interesting and impressive research from Deloitte shows that skills-based organizations are 107% more likely to place talent effectively, 52% more likely to innovate, and 57% more likely to anticipate change and practice resilience. You can read more data and insights here, where you can find other important facts such as that 73% of workers think that the skills-based approach would bring value to their professional experience.
In this context, two actions become essential: adopt skills-based hiring and promote a culture of continuous learning and development.
ADOPT SKILL-BASED HIRING
Rethink your recruitment philosophy so to prioritize skills when selecting the best fit for a role. Take the time needed to measure each candidate current skills and potential in order to fill the position in accordance with your approach and strategy.
CONTINUOUS LEARNING AND DEVELOPMENT
Provide opportunities for upskilling, reskilling and internal mobility which will increment the skills of your organization and will help you reach your challenging business goals. Also, people tend to remain in the professional contexts in which they can grow and feel always more engaged.
Is the skills economy already in place in your organization? Which will be your next move to shift to such approach?