Many businesses are experiencing a gap in skills (those discrepancies lie between the current and future states). Furthermore, companies are seeing a talent development shortage. This talent shortage jeopardizes the ability of many organizations to execute strategic initiatives.
According to one recent survey, 98 percent believe verified skills data is essential for identifying hidden talent. Furthermore, nearly 7 in 10 firms use performance evaluations for measuring skills and competencies; but over half are doing those assessments only 1once or twice per year.
The findings come from over 1,100 HR leaders and managers in the U.S. and come from a performance enablement platform called Betterworks and the associated report Skill Fitness: Powering the Skills-Based Organization with the Right Data.
The report goes on to indicate that 74 percent of firms believe adding verified skills data into performance processes could improve internal mobility. There is also the finding that the main barrier to skill development is lack of time, something raised by 44 percent of employees.
Many companies are challenged to find both best-fit outside candidates and identify and cultivate existing talent. Concurrently, technological advancements are rapidly driving demand for new skills.
Demographic shifts — the wave of baby boomer retirements and the influx of Gen Z into the workforce — also contribute, resulting in the skills shortage. Without the right skills in their workforce, companies are unable to transform to keep pace with change, let alone innovate to stay ahead.
In terms of actions, the study findings highlight the need for cleaner, up-to-date skills data and AI-powered mechanisms to align talent development with strategic goals, ultimately uncovering hidden skills and enhancing internal talent pipelines.
Such a skills-based approach that is built on a foundation of performance data is no longer optional, but probably essential. As organizations face rapid technological changes, evolving market demands, and intense competition for talent, HR leaders are increasingly aware that a robust skills-driven model is critical for long-term success.
While companies invest heavily in recruiting and talent management processes, the foundation remains weak without up-to-date, accurate, and verifiable skills data. This feature was recently recognized by HR Executive and the HR Technology Conference & Exposition.
The only alternative is to lower requirements and another finding is where 78 percent of organizations have modified job requirements due to lack of skills.
