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Launching a Skills-Powered Organization Through the Use of Skill-Based Frameworks

The world is in continuous evolution thanks to technological and economic challenges. As such, organizations are compelled to make way for more skilled-based practices by implementing flexible and agile workforce arrangements, skill development, and the prioritization of agile methodologies

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Shifting towards a more skills-based strategy enables organizations to quickly respond to more pressing matters, giving them breathing room and a competitive advantage in today’s business environment. 

Are you interested in learning more about how you can build business resilience and improve competitiveness? This Pacific Prime article will serve as a guide on how organizations can make the shift to support a more skills-based work culture. 

What is a Skills Framework?

A skills framework in an organization is a structured and standardized approach to defining, organizing, and managing the skills and competencies required for various roles within the organization. It provides a common language and framework for assessing, developing, and recognizing the skills of employees.

A skills framework typically includes a set of defined skills or competencies that are relevant to different job roles or functions within the organization. These skills can be technical, functional, or behavioral in nature.

The main purpose of a skills framework is to provide clarity and consistency in defining the skills and competencies needed for different roles. It helps establish a common understanding of the skills required for success in various positions and provides a basis for recruitment, performance management, and career development activities.

To be more specific, organizations can use a skills framework to:

Facilitate Talent Management

A skills framework allows organizations to identify skill gaps and develop targeted strategies for talent acquisition, development, and retention.

Enable Effective Performance Management

Clear skill definitions and proficiency levels help managers and employees align performance expectations and provide a basis for constructive feedback and evaluation.

Support Career Development

A skills framework provides employees with a clear understanding of the skills they need to develop to progress in their careers. 

Enhance Workforce Planning

By analyzing the skills present in the organization and comparing them to future needs, organizations can identify their strengths and weaknesses. 

The Benefits of Implementing Skills-Based Strategies

Skills-based work strategies increase organizational agility, broaden talent pools, enhance employee career development and learning, and help eliminate bias. 

Increased Organizational Agility

Businesses that embrace the dynamism of skills-based strategies will be better at handling challenges with efficiency and speed. This also supports internal HR processes by providing the necessary breathing room for them to reallocate, develop, and reskill talent as they see fit. 

Broader Talent Pools

By providing your employees with an opportunity to both develop their skills and attain better job positions, the talent pools in your organization widen, allowing your human resources department to fill internal positions more easily in the event of talent shortages. 

Better Career Development and Learning

Skills-based organizations facilitate better learning and growth. Using this strategy, businesses can open doors for their workers, allowing them to acquire new skills and pursue different career paths. 

The Elimination of Talent Assessment Bias

By prioritizing skills above all else, your talent assessments and appraisals are done in a less biased and objective manner, ensuring that every position filled is done in accordance with the skill requirements. 

The Best Skills-Based Strategies to Implement 

The best skills-based strategies to implement are flexible and agile workforce structures, skills-based talent development schemes, agile methodologies, job deconstruction approaches, and tech-enabled development and administration. 

Agile Workforce Arrangements

Traditional work structures are focused on the job descriptions and qualifications or certifications that are required for the role. Today, it is imperative to re-evaluate your career framework by reviewing all job descriptions and updating the skills required for each role.

Additionally, this is an opportunity for employers to be less stringent on hiring requirements, such as degrees. Opening this door of opportunity means bringing in more knowledge-hungry, practical, and diligent employees to fill certain roles, resulting in a more driven and meritocratic workforce. 

Skills-Based Talent Development Schemes

After establishing a flexible and agile workforce structure, it’s time to enable your workforce to develop. This can be done by evaluating the skills that your employees have and the skills that they will require to perform well in the present and future. 

Implementing Agile Methodologies

Adopting fundamental agile principles company-wide will help your skills-based organization succeed in the age of agile methodology. For example, putting people and their interactions ahead of procedures and tools and adapting to new circumstances ahead of rigidly sticking to a predetermined agenda will improve the overall efficiency of your organization. 

Job Deconstruction Approach

Many large-scale organizations, such as Mastercard and Unilever, have adopted a framework wherein specific jobs entail tasks to be done. What this means is that companies are focusing more on the tasks that must be done and the skills required, as opposed to the job title of an employee. 

Furthermore, every skill acquired or developed should be primarily catered to a business’s needs. Instead of spending money on recruiting new employees, you can save money by focusing on redeployment and reskilling existing employees in line with your core business strategy and needs.

Tech-Enabled Skill Development and Benefit Administration 

The days of manually keeping track of workforce development—especially on paper—are over. Various tech vendors offer organizations employee-specific developmental plans that can be monitored through online platforms, and this includes employee-specific employee benefits administration

Why Organizations are Adopting Skills-Based Strategies

Skills-based practices must be adopted in modern times to adapt to the talent shortages in an extremely competitive talent market. Without adapting, organizations are prone to productivity loss, talent shortages, and business disruption. 

Additionally, by setting up the precedent for a skills-based workforce, you’ll soon lead your organization using the domain of skills-based leadership. This meritocratic and practical approach will result in more accurate employee performance and skill assessments. 

The Key Drivers Behind the Adoption of Skills-Based Strategies

The key drivers behind the adoption of skills-based strategies are problem statements, a lack of business integration, shifting market trends and leadership direction, and achieving the balance between humans and automation. 

Problem Statements

Problem statements comprise various issues that an organization may face, such as unsatisfactory KPI performance, a lack of growth opportunities, talent shortages, specific business needs, or a lack of data-driven analyses. 

Lack of Business Integration

More often than not, skills are not included as part of a business strategy to facilitate productivity or achieve cost-savings through employee retention. Prioritizing reskilling and redeployment offers employees a sense of assurance and progression. 

Shifting Market Trends

When market practices and trends shift, key decision-makers such as Chief Executive Officers and Chief Human Resource Officers are compelled to make adjustments to their skill frameworks in order to meet these new standards. 

Achieving the Balance Between Human Skills and Automation

Today, it is more important than ever to achieve a balance between human intervention and automation. This will bring about the agility and talent fluidity required to continuously adapt to technological and industry changes, which occur more frequently today than in the past. 

Elevate Your Organization with the Right Benefits Platform 

To enhance their standing as desirable employers, businesses should consider adopting platforms for managing employee benefits. Implementing the right platform can consolidate all policies in one place, control expenses, foster engagement, and enhance the overall well-being of the entire workforce. 

Additionally, providing employees with convenience and flexibility to instantly access and manage their benefits is crucial for driving growth in a diverse and multi-generational workplace.

Pacific Prime’s One Portal assists companies in reallocating resources from treatment and prevention to address the specific needs of their employees, such as physical, mental, and financial health risks.

If you require expert guidance on employee benefits or if you are in need of international health insurance, corporate health insurance, or expat health insurance, please don’t hesitate to reach out to us.

Content Writer at Pacific Prime
Piyanat is a Content Writer with an affinity for storytelling and marketing. He works with a team of experienced professionals at Pacific Prime who create a range of engaging and informative content aimed at helping both individuals and companies understand the importance of and benefits of insurance.

Upon graduating from Mahidol University International College’s International Relations program, he spent his career in marketing and business development, working for an international subcontractor, a marketing research firm, an international news agency, a software development company, and a creative agency. His journey now continues at Pacific Prime, where he hopes to make an impact by simplifying insurance.

In his free time, Piyanat is an avid martial artist and musician, spending most of his time at boxing gyms in Nakhon Pathom and music studios with his friends in the music industry. He’s also a big fan of turtles.