Skills-focused organizations see better performance across multiple key metrics of success

Organizations that link skills to their job framework can ensure they have the right people with the right skills in the right roles and are reporting a greater return on investment than organizations that don’t, according to WTW’s “2025 Skills Survey: From Concept to Currency” research.

Defining a skills-focused organization

Respondents agreed that the four most common characteristics of a skills-focused organization are:

• Providing learning and development opportunities for employees to expand and grow their skills
• Aligning workforce capabilities to strategic organizational goals
• Prioritizing upskilling and reskilling existing employees over hiring externally
• Being flexible and responsive to talent allocation

For years, employers have anticipated that new technologies like artificial intelligence and machine learning would lead to job losses. However, these findings suggest that, rather than being replaced by technology, the skills embedded and needed to optimize on these technologies (e.g. prompt engineering, data visualization) and the new jobs they generate will be essential to enabling organizations to evolve. Jobs serve as the backbone for skill-centric organizations.

Take a focused approach

On average, respondents said they apply their existing skills programs in just one or two areas and another two are likely in the future. None of the responding organizations are trying to do it all. The most common application of skills in play are:

• Job evaluation and documentation
• Career progression and pathing
• Talent acquisition and sourcing
• Learning and development opportunities
• Performance management

However, less than 30% of respondents reported currently leveraging skills effectively, indicating that there is still work to be done to get the application of skills right.

Organizations effectively using skills report higher levels of organization performance

Organizations that reported effectiveness at using skills for multiple use cases are likelier to report outperforming peer organizations across multiple indicators.

How do you get there?

Skills-focused organizations understand and define the skills they need and know the skills they have. They apply a skills strategy that focuses on clear definitions, active tracking of the supply and demand of talent, and comprehensive assessment and verification of existing skills and skills they need to identify for future success.

If your organization isn’t putting skills first yet, ensure you have a strategic partner that will help your organization to:

• Develop your skills strategy to support your organization’s strategic goals
• Ensure the underlying infrastructure of your job architecture is fit for purpose
• Build a defined skills taxonomy
• Align your pay programs to address skill-related pay concerns and support talent acquisition and retention as well as skills development
• Address technology needs to align to and optimize your use cases

When you’re ready to begin your skills journey and enjoy the benefits to your organization both today and tomorrow, contact us and we can discuss your unique needs.