Three data-driven mindset shifts required to close the skills gap

Since the 1970s, we’ve categorized skills into “hard” and “soft” skills. This binary matrix is outdated and ignores another type of skill – transferrable skills – which help companies transfer workers with relevant experience into high-priority roles and empower people to make meaningful career shifts.

New research from the Achievers Workforce Institute (AWI) reveals that 60% of managers say they want to hire for transferable skills but struggle to identify suitable candidates. Additionally, we know identifying, validating, tracking, and improving all skill sets is crucial for HR leaders looking to build a future-proof workforce, but many don't know where to start.

To help HR leaders address this skills gap and unlock the hidden talents of their workforce, three mindset shifts are critical.

Adopt the new skills matrix

Achievers has created a comprehensive framework that not only helps organizations identify the specific skills required for jobs across departments but also provides a nuanced approach to talent development. This new skills matrix recognizes three district categories:

• Technical Skills – rebranded hard skills which are formerly taught, like coding)
• Transferable Skills – Historically overlooked set of skills; Mix of formal and informal learning that can apply to many roles (e.g., professional writing, project management).
• Essential Skills – Rebranded soft skills; Necessary for success in almost any career but often learned informally on the job (e.g., communication, accountability)

This new breakdown of skill sets will help HR leaders have a more defined outline of what skills their employees possess and boost key areas of growth.

Understand that new and shiny isn’t always necessary

Enterprise-grade businesses enjoy limitless possibilities for internal mobility, yet the sheer scale of their workforce makes skill tracking more complex. Luckily, HR leaders can scale skills tracking with tech tools they use every day: HRIS/HCM platforms. These software solutions serve as skills tracking superpowers in three ways:

• Standardizing performance reviews – bring performance review data into HRIS systems to build more formalized long-term career plans and opportunities
• Scaling goal setting – bolster internal mobility by leveraging HRIS to identify overlaps between company needs and employees’ goals
• Mobilizing Praise Profiles – cut out managerial biases in employee performance reviews by integrating recognition data into HR platforms to validate employees’ skills with the recognitions they’ve received over time

Approach recognition as a skills identifier

Employee recognition not only increases workplace belonging rates and drives great benefits to a company’s bottom-line, but it also helps with skills identification. Even so, AWI data reveals that just one-third of HR leaders use recognition platforms to track and validate skills. These leaders leave their peers in the dust when it comes to internal mobility, as they’re 38% more likely than average to say their company can quickly identify people with priority skills when needed. Recognition programs can provide managers with a holistic view of an employee’s capabilities and skill sets. Additionally, by highlighting the most appreciated and necessary skills, recognition programs help HR leaders identify gaps and validate current employee skills that have the greatest impact.

It's time to upskill your skills strategy

Effectively identifying and tracking employee skills is vital for organizations to leverage the talent they already have. When managers clearly understand their teams' skills, they can ensure that everyone shines. This boosts productivity, enhances employee satisfaction, and ensures that the organization cultivates a resilient and agile workforce.

Looking for more ways to supercharge skills in your workplace? Check out AWI’s latest study here.