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WHY YOU NEED A TALENT DEVELOPMENT STRATEGY FOR THE SKILLS ECONOMY

August 21, 2024 | Activate Learning | 6 min read


MARK ONISK

Chief Content Officer, Business Development

IN THIS ARTICLE:

 * Where Skills Fit Into the Talent Development Lifecycle
 * The Importance of Measuring and Indexing Skills
 * 3 Ways to Measure Skills
 * Indexing Skills: Create a Structured Framework
 * How to Index Skills
 * Skill Measurement is an Ongoing Process

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More and more, talent development leaders are adopting a skills-based approach
and focusing on measuring competencies across their workforce. The move is part
of a broader strategy to close skill gaps and develop more resilient employees
as the nature of work continues to evolve.

Why a skills-based approach? Because any organization’s lifeline is its
workforce’s skills — or the abilities of employees to accomplish an array of
tasks.

By understanding and categorizing skill levels within the workforce, companies
can not only refine their talent development processes but also enhance their
talent acquisition and retention efforts. And – measuring the ongoing
development of skills within your organization can optimize talent allocation,
maximizing productivity, efficiency, and overall performance. 

In this post, we’re going to cover the critical realm of skill measurement and
the strategic importance of embracing a competency-focused strategy in today’s
rapidly evolving work landscape.

Let’s dive in.


WHERE SKILLS FIT INTO THE TALENT DEVELOPMENT LIFECYCLE

The modern workplace is increasingly characterized by a skills economy, where
competencies and capabilities serve as the currency of career growth and
business success. Within this context, the talent development lifecycle — from
hiring and onboarding to ongoing development and succession planning — relies
heavily on an accurate and dynamic understanding of employee skills.

IN THE HIRING PHASE:

Organizations can use Human Resource Information Systems (HRIS) to analyze
candidates’ resumes, focusing on extracting and mapping skills. These systems
often play a crucial role in spotting keywords within resumes to determine
candidate progression in the hiring process.

DURING ONBOARDING:

A thorough assessment of new hires’ skills allows for the customization of
onboarding programs, accelerating the time to productivity and ensuring that
employees start adding value immediately.

ONGOING DEVELOPMENT:

Continual skill measurement informs personalized learning paths, helping
employees develop competencies that align with both their career aspirations and
the organization’s needs. This dynamic approach to L&D promotes a culture
of continuous learning and improvement.

SUCCESSION PLANNING:

Understanding the skills across the workforce allows organizations to identify
high-potential employees and prepare them for leadership roles. This proactive
approach ensures a pipeline of future-fit leaders and minimizes disruptions
during transitions.

By developing a comprehensive understanding of employee capabilities,
organizations pave the way for strategic workforce planning, a critical
component in shaping their talent development lifecycle.

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THE IMPORTANCE OF MEASURING AND INDEXING SKILLS

Accurate skill measurement provides a clear picture of current
capabilities, identifies gaps, and informs strategic decisions related to
learning and development. As businesses strive to adapt to market changes and
technological advancements, having a precise understanding of their employees'
skill sets becomes indispensable.

Effective skill measurement impacts several facets of organizational success: 

 * Strategic Workforce Planning: Understanding skill levels helps in forecasting
   future talent needs and aligning L&D initiatives with business objectives.
 * Enhanced Performance: By identifying skill gaps, organizations can tailor
   training programs to address specific needs, leading to improved individual
   and team performance.
 * Employee Engagement and Retention: Employees are more likely to stay with an
   organization that invests in their professional growth. Skill measurement
   enables personalized L&D pathways that enhance job satisfaction
   and retention.


3 WAYS TO MEASURE SKILLS

When it comes to measuring skills effectively, organizations can employ various
strategies to ensure accurate skill assessments. Utilizing an introspective
approach that combines assessment methods with other evaluation techniques can
provide comprehensive insights into your workforce’s skills.

ASSESSMENTS AND SURVEYS

Self-assessments and surveys are valuable tools for initial skill measurement.
They allow employees to evaluate their competencies and provide valuable
insights to talent development teams.

IMPLEMENTATION TIPS:

 * Standardized Questionnaires: Use standardized questionnaires to maintain
   consistency. Design them to cover a range of relevant skills.
 * Regular Administration: Conduct self-assessments at regular intervals
   to track progress and identify trends.
 * Anonymity: Ensure anonymity to encourage honest responses.

MANAGERIAL ASSESSMENTS

Managers play a crucial role in assessing the skills of their team members.
Their insights, drawn from daily interactions and observations, add another
layer of accuracy to skill measurement.

IMPLEMENTATION TIPS:

 * Training: Provide managers with training on objective evaluation techniques
   to mitigate biases.
 * Standardized Criteria: Use standardized criteria — like a skills framework —
   to ensure uniformity across different managers.
 * Feedback Mechanisms: Implement feedback systems to review managerial
   assessments.

PERFORMANCE METRICS 

Performance metrics provide quantifiable data linked to specific skills, making
skill measurement more accurate. For instance, sales figures can indicate
proficiency in negotiation and customer relationship management.

IMPLEMENTATION TIPS:

 * Identify Key Performance Indicators (KPIs): KPIs, OKRs, however you set goals
   at work, use them to help identify skills and gauge proficiency.
 * Alignment with Roles: Relying on an employee’s KPIs, review the progress
   they’ve made toward achieving their goals. This can help determine skill
   gaps, as well as strengths.
 * Regular Reviews: Regularly review and update KPIs to reflect changing
   business needs.


INDEXING SKILLS: CREATE A STRUCTURED FRAMEWORK

While measuring skills is essential for understanding current capabilities,
indexing these skills is equally crucial for creating a structured and
actionable framework. Indexing involves organizing skills and defining their
proficiency levels, making it easier to manage and analyze the workforce’s
collective expertise.

This structured approach to skill management helps in aligning organizational
goals with employee development, ensuring that the right skills are built to
meet business needs.

A well-designed skill taxonomy serves multiple purposes:

 * Provides a comprehensive inventory of skills available within the
   organization, aiding in resource allocation and project planning.
 * Helps identify skill gaps that need to be addressed through targeted training
   programs.
 * Guides companies in aligning recruitment efforts with identified skill
   requirements. 

And a well-designed job architecture can:

 * Facilitate career development by mapping out clear paths for skill
   progression and advancement.
 * Support succession planning by identifying potential leaders and preparing
   them for future roles.


HOW TO INDEX SKILLS

SKILL TAXONOMIES AND FRAMEWORKS

Skill taxonomies help in organizing skills into categories and sub-categories,
making it easier to manage and analyze them. They provide a structured approach
to understanding workforce capabilities.

IMPLEMENTATION TIPS:

 * Define Skill Categories: Identify skill categories relevant to your
   organization’s goals.
 * Break Down Skills: Detail specific skills for each category.
 * Establish Proficiency Levels: Set proficiency levels for each skill (e.g.,
   beginner, intermediate, advanced).
 * Communicate the Taxonomy: Disseminate the taxonomy clearly to employees and
   managers.

DIGITAL PLATFORMS AND TOOLS

Technology plays a pivotal role in skill indexing. Digital platforms and tools
streamline the process of data collection, analysis, and reporting. Leading
tools in this space offer features such as skill assessment modules, learning
management systems, and real-time analytics.

IMPLEMENTATION TIPS:

 * Integration: Ensure that digital tools integrate seamlessly with existing HR
   systems.
 * User Training: Provide training to employees and managers on how to use these
   tools effectively.
 * Data Security: Work with your IT team to implement robust data
   security measures to protect sensitive information.

DATA INTEGRATION AND ANALYSIS

Integrating data from various sources — such as HR systems, performance
management tools, and training platforms — provides a holistic view of skill
levels across the organization. Advanced analytics can then be used to refine
skill indexes and inform strategic decisions.

IMPLEMENTATION TIPS:

 * Identify Data Sources: Identify key data sources (e.g., LMS, TMS, performance
   management systems).
 * Establish Protocols: Collaborate with your IT team to establish data
   integration and governance protocols. 
 * Generate Insights: Gather data to help illustrate skill proficiency for
   stakeholders and inform future strategies.
 * Training for HR Teams: Provide training for HR teams on how to use analytics
   tools effectively.


SKILL MEASUREMENT IS AN ONGOING PROCESS

Developing the right skills and competencies across your workforce is crucial
for organizational success. Measuring and indexing skills provides a solid
foundation for improving your learning and development (L&D)
strategies, upskilling and reskilling employees, and supporting talent
development and succession planning. 

To assess your team’s current capabilities, Skillsoft’s Skill Benchmarks test
learners’ knowledge of key concepts, while Interactive Skill Benchmarks
challenge them to apply these concepts in realistic scenarios. This combined
approach ensures a comprehensive understanding and practical application of
skills. 

Learn more about how Skillsoft can help your organization build a highly skilled
and adaptable workforce.

Read Next: Measure Mastery: How Interactivity Showcases Earned Skills



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