Skills-powered organizations Skills-powered strategies

Small iterations to success: A guide to implementing a skills strategy 

   

Introduction

In today’s rapidly evolving business landscape, organizations must adapt to stay competitive. The challenges organizations face in 2024 — such as rising labor costs, new work models and skills shortages — emphasize the need for workforce agility and the impact of generative AI on jobs. Companies are focusing on optimizing talent cost, attraction, retention, internal mobility, and upskilling and reskilling.

One key driver of success is a strategic approach to using skills to drive HR strategies. By implementing a formal skills taxonomy, organizations can bridge skill gaps, foster a culture of continuous learning and empower their workforce to thrive.

In this blog post, we simplify an overwhelming process by outlining explicit steps you can take to start your journey. 

Delivering skills at scale

We propose four manageable sprints to achieve results in implementing a skills-powered approach. 
  • Define
    The first sprint defines the unique “why” for your organization. Ask questions and listen carefully to the responses to find themes, identify problems you wish to solve using skills, uncover any areas of focus or quick wins, and define the business case. 
  • Engage
    The second sprint engages the broader business. It’s critical to confirm key influencers and decision-makers, share the business case, customize it to stakeholders’ needs, and identify where to pilot the skills-powered approach.
  • Build
    The third sprint is all about building the roadmap. This means defining and prioritizing project outcomes and challenges, identifying necessary technology integrations, establishing a governance framework, and continuously revisiting and adapting the project.
  • Activate
    The fourth sprint is activating the skills-powered approach through pilots. Identify a test business area or group of employees, review and create an enterprise-wide job and skill structure, validate it with the pilot group, and actively learn from the pilot.

Remember that the skills tech ecosystem is plentiful and that enabling technology, including HCMs, talent marketplaces, systems of record, systems of engagement and skills-powered point solutions, is available to help you on your journey.

Mercer’s Work and Skills Advisory Services can help organizations implement a skills-powered approach by defining and categorizing jobs, mapping skills to jobs, enabling employees to understand career paths, and rethinking work and talent processes.

By making skills the backbone of their talent practices, organizations can better allocate people to projects, help employees explore different career paths, and gain the flexibility to allocate their capital more effectively as their needs change.
Bradford Bell William J. Conaty

Professor of Strategic Human Resources, Cornell University ILR

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Conclusion

Implementing a skills strategy is a transformative journey that can unlock your organization’s full potential. By following the steps outlined in our guide, you can bridge skill gaps, foster a culture of continuous learning and empower your workforce to thrive in the ever-changing business landscape. Embrace the power of a skills foundation and position your organization for long-term success.
About the author(s)
Katie Jenkins

Work and Skills Product Director 

Peter Stevenson

Go-to Market Leader, Skills-Edge

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