Transform your talent management with skills intelligence

The concept of skills has become a focal point for talent leaders and employees alike as digital transformation continues to disrupt and change the concept of working. Traditional job roles and qualifications are being redefined as industries adapt to technological advancements and shifting market demands. 

This shifting landscape requires leaders to have a deeper understanding of the roles that skills play within organizations, and how they can be applied across all roles. This is required in real time. 

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What are skills, exactly?

Skills are specific abilities or proficiencies that individuals develop through practice and experience. They are often task-oriented and measurable, focusing on the capability to perform particular activities effectively. Skills can be categorized into various types, such as technical skills, soft skills, and transferable skills.

• Technical Skills: These are specialized abilities required to perform specific tasks related to a particular job or field. Examples include coding, data analysis, graphic design, and machine operation. Technical skills are often acquired through formal education, training programs, or hands-on experience.

• Soft Skills: These are interpersonal and intrapersonal abilities that affect how individuals interact with others and manage their work. Examples include communication, teamwork, problem-solving, and time management. Soft skills are typically developed through life experiences and are crucial for effective collaboration and leadership.

• Transferable Skills: These are versatile skills that can be applied across different jobs and industries. Examples include critical thinking, project management, and adaptability. Transferable skills are valuable because they allow individuals to move between roles and sectors more easily.

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What’s the difference between skills vs. competencies? 

A competency is, by definition, the ability to do something successfully or efficiently. They are often conflated with skills, but skills are just one of many components that make up competencies.  

Competencies are a comprehensive set of attributes that encompass the skills, knowledge, behaviors, and attitudes necessary for effective performance in a specific role or context. Unlike skills, which are specific and task-oriented, competencies provide a broader framework for understanding what it takes to excel in a particular line of work. 

In addition to skills, competencies can be made up of the following components:

• Knowledge: The theoretical understanding and information necessary to perform a job. For instance, a marketing professional needs knowledge of market research techniques, consumer behavior theories, and digital marketing strategies.

• Behaviors: The observable actions and conduct that contribute to job performance. Effective behaviors might include teamwork, leadership, adaptability, and communication. For example, a leader needs to exhibit behaviors such as decision-making, motivating team members, and managing conflicts.

• Attitudes: The mindset and approach individuals bring to their work. Positive attitudes such as resilience, openness to feedback, and a proactive approach can significantly impact job performance and workplace dynamics.

This distinction is vital for both hiring and professional development. By recognizing the specific competencies required for a role, organizations can better match candidates to job requirements, leading to improved performance and job satisfaction. Moreover, a clear understanding of skills and competencies helps individuals identify their strengths and areas for growth, facilitating continuous personal and professional development.

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The evolution of skills in the workplace

Job roles were traditionally defined by rigid qualifications and specific career paths. This approach often limited the candidate pool and overlooked the diverse range of skills that individuals could bring to a role. However, this narrow view is changing, and industries are beginning to recognize that effective performance isn’t tied solely to previous job titles and career paths but rather, to the underlying skills and competencies that individuals possess. 

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Case study: Major League Baseball and the talent gender shift 

American Major League Baseball (MLB) exemplified the narrow mindset for much of its history, where both players and talent development teams were predominately male. This was based on the assumption that only those who had played MLB could excel in related roles, and so the pool of potential scouts and coaches was restricted to former players. This created an all-male pipeline. However, as the industry recognized the diverse skills needed for these roles—data analytics, kinesiology, and strategic thinking—it became clear that these competencies are not exclusive to men or former players. 

The industry found that women entering these roles brought a variety of experiences and skills that enriched the talent development process. This not only boosted diversity but also broadened the scope of talent acquisition, emphasizing skills over traditional experience. It’s a powerful example of how evaluating the criteria for roles can lead to a more inclusive and effective workforce. And it’s just the beginning. 

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How is digital transformation linked to skills?

Digital transformation is a major driver of change in the skills landscape. Every day, more manual processes are becoming automated, and as technology continues to accelerate, so will automation.

As innovation continues on and organizations adopt new technologies, the demand for new skills will emerge, making it critical for employees and employers to stay ahead of the curve and stay competitive. This transformation is not only about integrating new tools but also about rethinking workflows, improving efficiency, and fostering innovation.

Digital transformation is making it necessary for leaders to prepare a workforce that’s adaptable to and proficient in emerging technologies. It’s also creating opportunities for reskilling and upskilling, processes that are enabling workers to “stay relevant” in their roles and contribute to the organization’s long-term success while their roles are augmented by artificial intelligence. 

This is supported by various statistics. According to McKinsey, one in sixteen workers may have to switch occupations by 2030. That’s more than 100 million people. Those who remain in the same occupations aren’t getting off lightly either: 40% will need to reskill in the next three years due to the impact of AI alone. These figures only grow in the long term. 

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The quantum view of skills

Here’s why all this matters: To us here at SkyHive, all these concepts—skills, competencies, digital transformation, reskilling—are important, and they’re all accounted for when we provide you with skills intelligence. We process more than 24 terabytes of raw data every single day, enabling us to analyze in real-time how skills and skills demands are changing. This puts us in a position to break down skills into their smallest form: quantum parts. 

Combinations or compounds of these quantum parts are the context of work. We’re able to sense if a job requires certain skills, experience, or knowledge. This data, coupled with our AI-powered technology, puts us in a position to provide organizations with market-leading skills intelligence to find, promote, develop, mentor, train, and nurture employees. All this is based on more than just, “Have they done the job before?”

Returning to the MLB anecdote, SkyHive technology wouldn’t limit your search for a baseball scout to former players. Our technology focuses on identifying the skills, knowledge, and experience associated with baseball scouting instead. 

Similarly, at a conference, we met a police officer who was a former journalist. Given his transferrable skills, the career change made sense; he was skilled at listening, asking questions, digging for information, and finding anomalies. We’ve also seen former teachers reskilled as paralegals. This also makes sense because a teacher’s experience with planning lessons, grading papers, researching subjects, and exhibiting reading comprehension are all transferable. 

Our technology also shows us which skills are becoming more and less valuable, as well as how roles are changing in terms of the skills and competencies that are needed to excel in them. This level of skills intelligence is possible because we’re constantly analyzing massive amounts of workforce data in real-time. 

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Skills vs roles and the shift to skill-based hiring

Hiring practices, as we touched on earlier, have traditionally focused narrowly on roles, with job descriptions emphasizing specific titles, past experiences, and formal qualifications. This approach often overlooks the underlying skills that candidates bring to the table and limits the pool of potential hires to those with similar backgrounds. 

However, the modern workforce is undergoing a paradigm shift towards skill-based hiring, which prioritizes the abilities and competencies that individuals possess over their previous job titles and experience in isolation. Skill-based hiring involves identifying the key skills needed for a job and searching for candidates who demonstrate proficiency in those areas. This has several advantages:

• Diversified talent pools: By focusing on skills, leaders can tap into a broader and more diverse range of candidates, including those from non-traditional backgrounds who, despite having the necessary skills, might lack conventional qualifications.

• Better job fits: Skill-based hiring ensures that candidates are selected based on their ability to perform the tasks required by the job. This naturally leads to a better match between the employee and the role. 

• Increased innovation: A diverse workforce with a wide range of skills brings different perspectives and ideas together. This can help to foster innovation and creativity throughout the organization. 

• Adaptability: Employees hired based on their skills are often more agile and capable of taking on multiple roles. This makes the wider organization more flexible and resilient in the face of change (such as digital transformation!)

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Reskilling and upskilling for the future

The rapid pace of technological advancement, digital transformation, and evolving industry requirements necessitates a commitment to reskilling, upskilling, and continuous learning throughout organizations. Reskilling and upskilling strategies help to ensure that the workforce remains capable of overcoming future challenges. 

• Reskilling: An essential strategy for filling skills gaps and ensuring that employees are equipped with the right skills to contribute to an organization’s long-term goals. It involves training employees to acquire new skills that are needed for different roles. Reskilling is essential when job functions become obsolete. 

• Upskilling: This focuses on enhancing an employee’s existing skills to improve their performance in their current role. Upskilling is crucial for keeping up with advancements in technology, processes, and best practices within a given field. 

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Five strategies for effective reskilling and upskilling

While there is no one-size-fits-all approach to reskilling and upskilling employees, talent leaders may find that the following strategies will help to provide the basis for a successful reskilling effort. 

1. Identify skills gaps: Conduct a thorough analysis of current skills within your organization and use them to build a skills inventory. Compare this inventory to the skills you need to achieve long-term goals to identify areas where reskilling or upskilling is necessary. 

2. Implement technology: Utilize online learning platforms, virtual training sessions, and digital resources to provide employees with access to high-quality, flexible learning opportunities. Technology can also be used to facilitate personalized learning experiences tailored to individual needs. 

3. Encourage a learning culture: Foster an organizational culture that places value on continuous learning and professional development. Encourage employees to take ownership of their learning journeys and provide incentives for participation in training programs. 

4. Collaborate with institutions: Partner with technical schools, universities, and other educational institutions to offer specialized training programs and certifications that align with industry needs. 

5. Establish peer learning: Establish mentorship programs where experienced employees can share their knowledge and skills with colleagues. Encourage peer-to-peer learning to create a collaborative learning environment. 

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The future of work is an agile workforce

If there’s one thing that the digital age is showing us, it’s that the fundamental concepts of work and what it means to work are being reinvented by increasingly advanced technologies. This is having a huge impact on the way we view and utilize skills and requires organizations to be adaptable to changing requirements and encourage workforce agility through reskilling. 

Indeed, by being committed to teaching their employees new skills, employers can foster a mindset of continuous learning and experimentation, leading to innovative solutions and competitive advantages in the market. 

Want to find out how SkyHive skills intelligence can help support your reskilling efforts?  Read our report produced in partnership with Forrester: AI Powered Skills Intelligence Is Now A Necessity, Not A Luxury