The Consequences of Ignoring Skills Data in Organizational Success
Organizations are increasingly recognizing the pivotal role that people play in their success.
Now that we can quantify the data and make strategic, tactical decisions based on them, more and more organizations are asking their HR teams to bring greater transparency into:
Who their employees are
How employees can help achieve business successes
So what has changed? The ability to easily aggregate and visualize organizational and individual skill data. This data serves as the cornerstone for understanding individuals within an organization, unleashing their potential, and driving sustainable growth.
Lets dive into why skills data is critical for organizational success — and the consequences of not integrating it into the workflow of your employees, your people managers, and your HR teams.
Organizational Triumphs: People, Baby!
People are the heart and soul of any organization. They’re the ones creating cutting-edge technologies, streamlining processes, and developing innovative solutions to problems.
But to ensure the business continues growing and achieve lasting success, organizations must invest in and support employees who possess the ability to foster innovation, forge meaningful collaborations, and gain a competitive edge.
Consequently, comprehending the diverse abilities, experiences, and aspirations of individuals is crucial for effective management and sustainable growth. Luckily, we now have an easier way to achieve this for everyone that plays a role in an organization.
How Employees Flourish through Skill Awareness
Unveiling employees’ unique skills opens up a world of transformative benefits.
It empowers them to identify their strengths and areas for growth, paving the way for personal and professional development.
A LinkedIn report has shown that 94% of employees express a desire to stay longer with an organization that invests in their career advancement. When armed with a clear understanding of their skills, employees can make informed decisions about career trajectories, target relevant learning opportunities, and set ambitious, yet attainable goals.
Moreover, self-awareness regarding skills instills a sense of confidence and empowerment, allowing employees to articulate their value within the organization, ultimately leading to heightened job satisfaction and motivation.
Many organizations are leaning toward solutions that have an easy way for employees to see recommended skills, add their own skills, and, most importantly, take actions on their skills — whether it means to help build a career path and trajectory based on their existing skills, upskill their current set by engaging in learning and developing, and successfully engaging in internal candidate searches to evolve in their career.
How People Managers Thrive with Skill Insights
People managers hold the key to unlocking the immense potential within their teams. By truly grasping the skills of each employee, managers can make well-informed decisions regarding task allocation, team composition, and training initiatives.
According to Deloitte, organizations that integrate skills data into the everyday workflow of people managers experience an increase in employee performance.
This is done by having insight into: 1) individual employee skills, 2) an aggregate of team skills data and gaps, and 3) recommendations on how to leverage data to support their employees and team. And this information needs to be readily available during 1:1 meetings, project development initiatives, succession planning, team planning, performance development, and promotions.
How HR Revolutionizes with Skills Proficiency and Trend Analysis
Human resources departments are at the forefront of talent acquisition, talent development, and workforce planning. Profoundly understanding individual employee skills empowers HR professionals to make strategic decisions in these areas.
The World Economic Forum estimates that by 2025, 50% of workers will require reskilling. HR, armed with skill data, can proactively address these changes by developing reskilling and upskilling programs tailored to the evolving skill landscape.
Tools that support workforce planning, succession planning, and skills gap and trend analyses help HR teams identify key people, roles, and job families in the organization that need attention. This data-driven approach to workforce planning ensures that organizations remain competitive, agile, and equipped with the right talent to navigate the ever-changing business landscape.
Understanding People and Leveraging Skills Data are Vital for Organizational Success
Without real-time people data, succession planning efforts suffer, hindering the identification and development of future leaders. And without data-driven insights into emerging skills requirements, organizations may face skill gaps and struggle to adapt to changing market dynamics. Ultimately, organizations risk missing out on optimizing talent allocation, underutilizing valuable skills, and losing a competitive edge.
To empower employees, drive performance, and fuel innovation, organizations must invest in capturing and leveraging skills data to optimize talent, adapt to changing market demands, and foster a culture of growth and engagement. By embracing it as the cornerstone of organizational success, businesses can unlock the full potential of their workforce and thrive in today's competitive business landscape.
Find out how your organization can leverage workforce intelligence to grow, evolve, and retain talent — get your personalized assessment and action plan.
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