How Is the Skills-First Approach Redefining the Workforce?
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Being a jack of all trades and a master of none used to put professionals at a disadvantage. But in today’s dynamic employment landscape, individuals with a diversified skill set are sharing the stage with specialists. Enter the age of the skills-first approach.
The skills-first approach is a transformative solution to employment challenges across the board. Removing traditional qualifications, such as academic requirements, could create a more inclusive labor market and empower individuals regardless of country, race, and gender—all while addressing global unemployment and labor shortages.
At the corporate level, embracing a skills-first approach allows companies to expand their talent pool and match candidates to the specific skills required for a job posting, as reported by LinkedIn in “Skills-First: Reimagining the Labor Market and Breaking Down Barriers 2023.” Moreover, the shift could increase a company’s chances of reaching financial targets by 63%, according to findings from the World Economic Forum (WEF) in “Putting Skills First: A Framework for Action.”
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Here are the action areas for organizations based on the World Economic Forum’s proposed initial framework for systematically implementing skills-first practices:
- Identify current and future skills needs and gaps and map skills to work tasks.
- Articulate skills needed in job descriptions, and leverage and recognize innovative skills assessment methods.
- Co-develop and co-deliver skills-based training programs with industry, learning providers, and government.
- Boost lifelong learning and access to skills-based learning opportunities.
- Create skills-based pathways for development and redeployment.
The WEF’s data also shows that a skills-first approach could enable over 100 million people to fully utilize their capabilities across different global economies. Furthermore, the WEF suggests that a wide variety of individuals will benefit, including those whose jobs are becoming obsolete as a result of advances in technology as well as people from different walks of life, including migrants and refugees who are struggling to be recognized in their host countries, parents and caretakers who have taken breaks to support their families, and people with disabilities who have face discrimination when it comes to showcasing their skills.
The spreading movement appears to be a relevant response to the findings of the WEF’s Future of Jobs Report for 2023, which underscores the urgency for businesses to address the skills gap as they compete to fill “the jobs of tomorrow.”
The game plan for workers is clear: Gain competencies for their preferred job or industry or choose from today’s most in-demand skills and build a “portfolio of skills”. According to LinkedIn’s data, since 2015, the skills that employees need for a specific job have changed by about 25%, and by 2027, that figure is projected to double.
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Adopting a skills-first strategy will trigger changes in different areas of an organization, from talent development to performance measurement. It will amplify the call for a holistic approach to implementing employee performance management systems.
It is important to keep in mind that while employers are seeking candidates with abilities akin to a Swiss Army knife, it is equally important for these individuals to continuously learn and ensure that each of their tools is finely tuned to function effectively.
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Editor’s Note: This was originally published in Performance Magazine Issue No. 28, 2024 – Employee Performance Edition.
