Companies embracing a skills-first approach and linking skills to their job framework are better positioned to attract, retain and develop talent, according to our “2025 Skills Survey: From Concept to Currency”. This shift is not just conceptual; it’s delivering tangible business results.
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
Application of skills programs
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 leveraging skills effectively, indicating that there is still work to be done to get the application of skills right.
Technology and skills coexist
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.
Organizations effectively using skills report higher levels of organization performance
Organizations that reported being effective at using skills for multiple use cases are likelier to report outperforming peer organizations across multiple indicators.
