Change is indeed inevitable. To continue being successful, organizations need to keep redesigning their strategies and practices. Ever since mankind started working, jobs became the dominating structures of work. Each job has a set of tasks and responsibilities which is performed, led, managed, and supported by HR.
As the business environment continues to change, organizations have realized that job roles are a collection of skills. Instead of referring an individual to a job title, they are seen as a whole person with specific capabilities and skills.
Because of this, organizations started embracing skills-based talent. This new talent strategy can reflect what the future holds. The skill-based organization helps in placing the capabilities and skills of humans at talent strategies which results in building a new operating model for the workforce.
The expertise required to complete a task or job is called skills. In order words, it encompasses the competencies, abilities, and knowledge to perform the operational task. It further helps employees advance in their careers and diversify their job options.
Currently we are witnessing a shift in talent management focusing on job roles to skill profiles. Previously jobs were the main ingredient of the organization’s talent processes. Hiring, compensation, and succession planning, HR systems were based on job roles. The HR professionals started facing challenges in achieving organizational growth equity, innovation, and agility. They could see the urgent need for valuing and rewarding employees for their skills rather than their education degree, level, or title. This traditional talent strategy was supporting standardization and bureaucracy. The jobs could not be developed or changed to achieve the organizational objective. Moreover, it views employees as filling them in organizational charts.
In contrast, skills-based organizations unlock the employee’s potential, bring innovation, and make them better at work. It helps in creating more worker-centric work which leads to organizational agility and resilience. SBOs are an attempt to adjust to the ever-changing marketplace in order to help companies find their future of work. This Deloitte article defines skill-based organizations as: “The organizational form that places skills and human capabilities at the heart of talent strategies, creating a new operating model for work and the workforce”.
Companies are now embracing skills-based concepts. They believe that the powerful impact of skills-based practices can help them solve intensified challenges. Following are some of the statistics which provide a sneak peek into the world of skills.
Organizations are well aware of the benefit can skills bring to them. Following are some of the importance of skills-based organization.
In conclusion, the skills-based organization is the most effective solution for companies all over the world. With its help, they can unlock agility and will be able to keep up with the pace of changes, as and when required. The skill-based practices can expand their access to talented individuals.
This will help employees as well to be more equipped with finding better jobs based on their skills rather than educational background. It is the right time for employers to commit themselves to skill-based practices.