Honing your skills-based talent strategy

Creating a skills-based talent strategy isn't just an advantage anymore — it's a necessity. Download our eBook to discover how to build a resilient, agile, and high-performing organization using verified skills.

Why skills-based is the future

Every organization today faces a critical challenge: bridging the gap between workforce capabilities and ever-evolving business demands. Traditional approaches to talent management are no longer sufficient in the face of disruption from AI, automation, and data analytics. Skills have become the currency of the modern workforce, and organizations that prioritize a skills-based approach are positioning themselves for long-term success. This eBook provides a comprehensive roadmap for organizations looking to make that transition and thrive in a skills-driven economy.

The demand for skills is outpacing supply, creating an urgent need for organizations to adapt. By shifting focus from static roles to dynamic skills, companies can empower their employees to embrace new challenges and opportunities. A skills-based approach fosters agility, aligns workforce capability with business goals, and enables organizations to thrive in a competitive landscape.

Organizations that embrace a skills-based approach reap significant bottom-line benefits, including:

• Revenue growth: Employees in roles that align with their skills are more effective and drive better business outcomes.
• Risk reduction: Accurate skills data minimizes compliance failures and operational errors.
• Cost savings: Targeted skills training reduces time-to-proficiency and eliminates inefficiencies.
• Retention: Employees who see clear growth paths are more likely to remain with the company.

Top companies becoming skills-based

Leading companies are already demonstrating the power of skills-based strategies:

• Merck: Reduced compliance errors by 97% and improved performance scores by 21% using immersive simulations.
• IBM: Doubled sales by implementing a skills-based approach within their consultant teams.
• Capgemini: Enhanced their emerging leaders program and improved talent alignment with a skills-first strategy.
• Macy’s: Drove better decision-making and more engaging employee experiences by using simulations to address unconscious bias.

Steps to becoming skills-based

Becoming a skills-based organization requires a strategic, step-by-step approach. This eBook outlines a proven roadmap to guide your journey:

The first step is to identify the critical skills your workforce needs today and in the future. Development efforts must be forward-looking, aligned with overarching business objectives.

Step 1: Create a future skills inventory

The first step is to identify the critical skills your workforce needs today and in the future. Development efforts must be forward-looking, aligned with overarching business objectives.

How can you do this?

• Engage stakeholders early: Involve department heads and project teams to determine essential skills across the organization. Discuss with senior management how skills can elevate their departments in the next 3-5 years.
• Predict future trends: Don't train for today's jobs alone. Consider the impact of AI, automation, and evolving industries. Map out future skill requirements and train accordingly. Establish a central document to house your skills inventory and ensure alignment among key decision-makers.

Step 2: Measure skills and collect data

Accurate skills data is essential for tracking progress and informing workforce strategies.

Employ a multitool approach

Don't rely on a single method for assessing skills. A comprehensive approach includes:

• Self-assessments: Collect initial data on employees' perceived skill levels.
• Digital assessments: Provide a basic evaluation of employee strengths and weaknesses.
• Immersive simulations: Collect detailed data on decision-making, provide coaching, and generate comprehensive reports for both learners and decision-makers.

Find skills gaps early

Avoid promoting employees without verifying they possess the necessary skills. Use skills data to ensure promotions are based on readiness, identify skill gaps, and allocate resources effectively.

Step 3: Leverage immersive simulations for learning

Accurate skills data is essential for tracking progress and info

Immersive simulations provide a risk-free environment for employees to practice critical tasks and develop essential skills.

Scalability for large teams

Upskilling large workforces can be complex. Immersive simulations enable organizations to benchmark, verify, and develop skills across teams of any size, offering a scalable solution for enterprises.

Rapid impact, without disruptive effort

Immersive learning simulations minimize learner seat time and maximize impact. By tailoring the experience to individual employee needs, organizations can deliver efficient and effective training.

Step 4: Embed a culture of continuous skill-focused learning

To solidify a skills-based approach, integrate it into your company culture and daily workflows.

Embed learning into the flow of work

Make learning an ongoing process, seamlessly integrated into daily activities:

• Microlearning programs: Deliver bite-sized, relevant content, such as micro-simulations, to reinforce skills and collect data.
• Peer mentorship programs: Foster knowledge-sharing and create a supportive learning environment.
• Project-based skill development: Enable employees to learn while executing tasks, focusing on specific skill development identified through immersive learning simulations.

Clearly define career growth pathways

Employees are more motivated to develop their skills when they see a clear link between learning and career advancement. Provide a structured roadmap that outlines the skills required for each career stage, offers personalized tools for tracking progress, and guides employee development.

The next step?

Use skills data to drive strategic decisions

You can easily leverage these new data-driven insights you're collecting to make smarter workforce decisions:

• Identify talent gaps and anticipate future workforce needs.
• Optimize workforce planning by aligning employee skills with business goals.
• Make informed decisions about promotions, hiring, and internal mobility.

Overcoming common challenges when becoming skills-based

Transitioning to a skills-based model can present challenges, including employee resistance, leadership buy-in, and technology integration issues.

Here's how to address them head on:

• Leadership buy-in: Secure executive sponsorship by demonstrating the ROI of skills-based initiatives. Use small pilots of immersive learning simulations to prove ROI before scaling.
• Employee resistance: Communicate the benefits of skill development for career growth and job security. Emphasize the link between skills and career advancement to drive employee engagement.
• Integration issues: Ensure your skills-based approach aligns with your existing technology and talent management systems. Ensure compatibility between your immersive learning simulation platform, skills data platform and your LMS.

Download the full eBook on Honing your skills-based talent strategy

Future-proofing your workforce is essential for building a high-performing organization. By honing your skills-based talent strategy in the next 6-12 months, you can empower your teams, drive real ROI, and establish a culture of agility, innovation, and resilience.