To help support their workforce in a dynamic business environment, modern organizations may look for innovative strategies to help keep up. One approach that’s gaining momentum across multiple industries is the evolution towards becoming a skills-based organization. Embracing a skills-based approach can influence the way businesses operate by transforming the traditional understanding of work structures and employee development. This strategic shift not only empowers Learning and Development (L&D) professionals but can support business growth by giving employees access to skills essential for organizational success. Here is how adopting a skills-based approach can be beneficial and how it can impact employee engagement, talent retention and adaptability while setting organizations apart in an increasingly competitive market.
Attract and retain top talent
A key benefit for skills-based organizations is that they often attract and retain top talent by offering a dynamic and skill-centric work environment. According to Deloitte’s study, skill-based organizations are 98% more likely to retain high performers.
• 79% more likely to have a positive workforce experience
• 47% more like to provide and inclusive environment
Source: The Skills-Based Organization, A New Operating Model for Work and the Workforce, Deloitte 2022
Create flexible approach to work
In a skills-based organization, the traditional model of work (defined by job titles and isolated departments) is deconstructed. Instead of titles and departments, tasks and activities are analyzed, and the specific skills required to perform them effectively are identified. This can be a more fluid and flexible approach to work for an organization.
Become more adaptable
Skills-based organizations are designed to recognize the immense value of individual skillsets, regardless of job titles. This shift helps encourage collaboration and cross-functionality, as individuals with diverse skillsets are brought together to work on projects based on the specific needs of the moment. This fluid talent pool approach can foster innovation and adaptability, allowing an organization to respond effectively to changing market demands and business challenges. According to Deloitte skill-based organizations are 57% more likely to anticipate change and respond effectively and efficiently.
Set your organization apart
Upskilling and reskilling have become a common practice to support both individual and organizational success in a skills-based organization. By fostering a culture of continuous learning, an organization can position its workforce to remain agile, adaptable, and equipped with the skills necessary to set itself apart in a dynamic and ever-evolving business landscape.
The ability to adapt swiftly, engage talent effectively and foster an environment of continuous learning helps distinguish these forward-thinking businesses. By embracing a skills-based future, companies can revolutionize their approach, leverage diverse talents to stay ahead of industry shifts and navigate the complexities of a dynamic business environment. Ultimately, the journey towards becoming a skills-based organization isn’t just about evolving structures – it’s about empowering individuals and organizations to thrive in an era defined by change and opportunity.