Put skills at the heart of your talent strategy

In today's fast-paced market, addressing skills and labour shortages is crucial for organisations to improve productivity and employability. By focusing on skills development, organisations can ensure their workforce is adaptable, innovative, and high performing, says Marlene de Koning, PwC expert in the field of people analytics and HR technology.

A skills-based talent strategy promotes resilience and growth of an organisation. By setting clear goals aligned with the strategy, embracing change, engaging stakeholders, investing in technology, and integrating skills into HR processes, organisations can build an agile workforce that stays ahead of industry changes. This strategy not only tackles skills and labour shortages but also drives growth and innovation.

The urgency of addressing skills shortages

PwC’s CEO Survey of this year reveals that 52 per cent of CEOs anticipate significant impacts on profitability due to skills and labour shortages over the next decade. This issue is compounded by the need for organisations to reinvent their business models in response to various external and internal pressures, including economic and geopolitical uncertainties. 

The World Economic Forum’s Future of Jobs Report 2023 already showed that skills gaps and talent attraction are key barriers to industry transformation. As organisations race to fill the jobs of tomorrow, the situation is expected to intensify.

In this context, adopting a skills-based talent strategy is imperative. This strategy prioritises the development of employees' skills, enabling them to grow, perform meaningful work, and navigate through changes within their industry. Whilst building a skills-based working environment requires a fundamental shift in mindset and organisational culture, it can help organisations manage their workforce challenges and remain viable now and into the future.

How do you set up a skills-based talent strategy?

How do you set up such a talent strategy? In the beginning, it is important to develop a clear vision, and goals based on skills, including a roadmap to achieve those goals. A well-defined strategy allows you to make informed decisions, allocate resources effectively and adjust the course of the company where necessary.

During this phase, it is important to ensure that employees understand and support the vision of a skills-based talent strategy. This alignment fosters a sense of purpose and direction. Additionally, a supportive organisational culture is crucial, as it encourages employees to embrace change and continuously develop their skills.

Map skills gaps

Many organisations have already set their goals and vision for 2030 and have defined what success can look like. By placing skills at the centre of the organisation, businesses can now identify skills gaps that may exist currently and anticipate the skills that will be in high demand in the future. Addressing these gaps through talent acquisition, retention, training and development programs, or the implementation of GenAI can ensure the workforce is equipped with the necessary skills to drive the organisation forward. 

A growth enabler is investing in (new) technologies and systems. Technology plays a big role in facilitating the roll-out and adoption of a skills-based strategy. These advancements provide easier access to skills data, empowering the organisation to make data-driven decisions and gain a competitive advantage. For example, using artificial intelligence (AI), a retail organisation can identify skills gaps in their customer service team. By addressing skills gaps in their customer service team, the organisation can improve customer satisfaction to drive profit and growth through providing excellent customer service, meeting customer expectations and effectively resolving issues.

Key considerations prior to implementation 

Before implementing a skills-based strategy, an organisation must carefully evaluate several key considerations to ensure a smooth and effective transition.

Once decisions on the key considerations are made, an organisation should operationalise the skills strategy. Seamless integration ensures minimal disruption and maximum effectiveness and benefits across all departments and operations.

Put skills at the heart of your strategy and ensure you are ready for the future

To effectively address skills and labour shortages in today’s rapidly changing business environment and enhance employability and productivity, organisations need a clear vision and strategy for skills development. Put skills at the heart of your strategy to unlock your organisation's potential and lead the market. Transform your workforce today for tomorrow's success.