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Skills

Skills-Based Is the New Workforce Frontier

We have recently talked about gamification and digital credentials as strategies for greater employee engagement, collaboration, and skills development. As enterprises re-engineer their workforce architectures toward a skills-based organization, these strategies will play a critical role in that initiative.

Why is skills-based the next workforce frontier? Simply put, traditional, antiquated job description-defined roles are ineffective in today’s volatile business landscape. Enterprises require agility and flexibility to respond appropriately to operational and market changes. A skills-based workforce architecture supports that requirement by aligning employee skills with project-focused initiatives. Deploying employees with specific skill sets to solve problems and ensure business continuity is a Future of Work vision.

Purpose of Work Redefined

With a nimble and responsive workforce, enterprises can leverage their talent using a more holistic approach while generating a greater sense of work purpose for employees. According to an article in Training magazine, “Skills-based organizations have a more agile and employee-centric approach to work where employees are valued for their skills rather than their job title, level, or educational qualifications.”

“It is a new operating model of work where employees are matched to tasks and projects based on skills, capabilities, and interests. Focusing on skill sets instead of job experience can help organizations optimize their talent pool.”

However, the success of this workforce model depends heavily on the ability to define work within the enterprise. What is the work that can ultimately provide a competitive advantage in the marketplace? Where in the organization does the most critical work reside? What skillsets and capabilities are most valued to accomplish the work required? How does the enterprise capture, structure, and utilize skillset data?

The critical answers to these questions are all part of the foundation of a skills-based structure.

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The Future is Now

By now, you may have consumed many grand predictions for the year ahead as it pertains to the world of work and talent. If you haven’t, well, be sure to check out our exclusive series that featured insights from nearly 20 industry thought leaders and executives from across the solution provider landscape.

2022 was another watershed year for the business arena. We grappled with Year Three of a pandemic, dealt with the fallout and reshuffling from The Great Resignation, tapped into the power of new and exciting technology, learned the meaning of humanity in how we work, and continued to experience the growth and impact of the extended workforce.

And this is the just the beginning of what is up ahead. 2023 will surely challenge us, with the specter of an economic downturn lingering overhead as well as continued uncertainty regarding the volatility of the labor market. However, as we have done over the past three years, we will persevere, we will thrive, and, most critically, we will innovate.

Today, on the Future of Work Exchange, we unveil four laser-focused predictions for the year ahead:

  • Skills, skills, skills…talent acquisition and workforce management will revolve around skillsets and expertise. Globalization, digitization, flexibility, and agility, mixed with labor market volatility, equates to a brave new world of talent acquisition and talent engagement. Executives will seek cost-cutting measures to combat economic uncertainty, but in 2023, it won’t affect the overarching need for top-tier skillsets and expertise. Businesses have experienced a massive skills gap over the past several years and the only way to thrive (not just merely survive) in today’s business arena is to pump resources, innovation, focus, and technology into revamping talent engagement and talent acquisition strategies. Skills are the centerpiece of the Future of Work today.
  • Intelligence becomes the nexus of the Future of Work. Businesses were living in a Big Data world long before the term was applicable. As machine learning infiltrated analytics and artificial intelligence became a foundation for workforce data, business leaders were enabled with the power to infuse real-time, on-demand insights into their core talent-led decision-making processes. Today, and into 2023, that concept will evolve as enterprises develop “skills catalogs,” seek to shift expertise where it is needed given changes in the market, and infuse AI into talent acquisition and recruitment approaches to maximize skillsets and eschew archaic talent engagement methods.
  • Omni-channel talent acquisition is 2023’s gold standard for engagement. This is something that the Exchange discussed recently (especially during last week’s predictions-focused webcast). Direct sourcing, talent communities, talent marketplaces, digital staffing, and freelancer networks are all deep and viable outlets of candidates; thus, businesses can take an omni-channel approach and optimize their hiring by aligning their talent acquisition strategies with these sources of talent. And, the omni-channel approach traverses beyond this type of alignment: by maximizing various sources of talent (through VMS, ATS, direct sourcing, etc.), businesses are able to boost candidate engagement by providing a worker-specific experience to each prospect that is inclusive of assessment, opportunity, and clarity.
  • Humanity shines through in every facet of how and why we work. The pandemic didn’t just result in Future of Work accelerants like remote/hybrid work and the shift to flexibility; it truly humanized the way we, as both professionals and people, perceived the role of work in our daily lives. The Future of Work should be predicated on humanity in such a way that it cascades into how leaders manage their people via empathy, understanding, appreciation, and transparency. Workers today face a variety of issues: economic uncertainty, burnout, poor mental wellbeing, challenges with workplace culture, etc. Leaders have a new role in 2023: continue managing towards organizational goals and objectives whilst focusing on the human side of business. ensuring that workers and candidates are provided the flexibility and emotional wellness that they require to succeed.
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