When the CFO goes wild about the 'New Currency'...

Yes, I am talking about skills. Will it happen soon? No!

Why? Not that a CFO didn’t hear about skills before. His CEO, COO and the business are talking about it. He knows.

So what is the perception of ‘skills’ to a CFO?

Probably, skills = training and training are costs ;)?

It won’t happen soon from a CFO perspective in my opinion. Because, first you need to understand the concept of a 'skills-based' approach in your entire organization - from recruitment and L&D to leadership and the business (especially in Sales, Operations, and yes, also in Finance).

And this is a big change!?

I will later explain why it’s ‘big’ when a CFO understands the concept.

Conversation about skills has taken center stage. You may have heard phrases like "skills are the new currency" before or read articles about it in a LinkedIn post or research paper. But what does it mean? More importantly, why should CFOs, COOs, and CEOs care?

The idea that "skills are the new currency" means that skills and competencies are becoming the primary measure of an individual's value in the workplace. Unlike static credentials like degrees or years of experience, skills are dynamic, adaptable, and directly tied to an individual's ability to contribute to their organization. When leaders grasp the value of a skills-based approach, the organization can unlock new opportunities for growth, innovation, and agility.

Why Skills Matter More Than Ever

1. The Changing Nature of Work

The world of work is in constant flux. Automation, artificial intelligence, and digitization are reshaping industries and creating new job roles. The skills that were valuable a decade ago may no longer be relevant today. According to Fuel50 , the shelf life of a skill is estimated to be just five years. Personally, I believe technical skills have a shelf life of a couple months to max. three years. This means that organizations must continually assess, upskill, and reskill their workforce to remain competitive.

For CEOs and COOs, the implications are clear: investing in the right skills is key to staying ahead of the competition. It enables organizations to be more agile and responsive to market changes.?

Luckily CFOs too, are beginning to see the financial benefits of a skills-based approach—lower turnover rates, increased employee engagement, and better alignment between talent and business needs.

2. Technological Advancements and Economic Shifts

As technological advancements disrupt industries, they also change the nature of work. This creates a greater demand for skills that are aligned with these changes, such as digital literacy, data analysis, and advanced technical expertise.?

But it's not just about technology; it's also about the soft skills that are increasingly in demand, like adaptability, collaboration, and critical thinking.

Organizations that can map their workforce’s skills to evolving market needs can better position themselves for success. Amy Borsetti on LinkedIn emphasizes that organizations must prioritize understanding the skills that are crucial to their business and aligning their talent strategy accordingly .

How $KILL$ Become the New Curr€ncy

For skills to truly become the new currency, organizations must shift from traditional, rigid structures to a more dynamic, skills-based approach. Here’s what this transformation entails:

1. Redesigning Recruitment and L&D

A skills-based approach starts with rethinking how you hire and develop talent. Rather than focusing solely on credentials and previous job titles, organizations should prioritize the skills and potential of each candidate. This approach allows companies to tap into a broader talent pool and ensures that they hire people who can grow with the organization.

Moreover, Learning and Development (L&D) must become an integral part of an employee's journey. This means offering continuous learning opportunities, whether through formal training programs or informal, on-the-job experiences.?

As highlighted by HR Executive , creating a culture of continuous learning is key to building a resilient workforce that can adapt to changing market demands .

2. Skill-Based Internal Mobility

Skill-based internal mobility is another critical component of this transformation. It’s not just about hiring the right people—it’s also about ensuring that existing employees can move within the organization as their skills develop. Companies that excel in this area retain employees for an average of 5.4 years, nearly twice as long as those that struggle with internal mobility.

By focusing on skills, organizations can break down silos and create pathways for employees to transition into new roles. This boosts engagement and ensures that the right talent is matched to the right projects, which can have a direct impact on the company’s bottom line.

3. Meeting Employees Where They Are

Creating a skills-based culture is not only about processes and systems—it’s also about mindset. To build a truly skills-driven organization, leaders must meet employees where they are, understand their needs, and support their growth. This means having conversations about career goals, offering mentorship opportunities, and making it easy for employees to access learning resources.

A culture that values skills over job titles is more likely to retain top talent and attract new hires who are eager to grow. As organizations increasingly move towards a skills-based model, those that can create a supportive environment will be the ones that thrive in a competitive market.

Why This Matters for the C-Suite

For CFOs, COOs, and CEOs, adopting a skills-based approach is not just a trend—it's a strategic imperative. Here’s why it should be on their radar:

1. Strategic Alignment

By focusing on skills, organizations can ensure that their workforce capabilities align with strategic objectives. For example, if the business is moving towards greater digitalization, investing in digital skills and upskilling initiatives will ensure that employees are ready to support this shift. This makes it easier to execute on strategic priorities and adapt to changes in the market.

2. Financial Impact

For CFOs, the ROI of a skills-based approach can be substantial. When organizations focus on developing their employees' skills, they see lower turnover rates, reduced hiring costs, and improved productivity. A well-designed skills strategy can be a lever for financial stability and growth.

And please stop buying generic content that nobody uses! Instead, organize ‘free’ content from sources like Youtube videos, Spotify podcasts, research papers, blog articles or even GenAI generating its own content. But do it always in the context of work, projects and tasks.

Organize it decentrally and give learners, subject matter experts and other professionals from the business the change to collect and manage their own content that’s connected to the related skills.

CFO, read my lips: “this will save you BIG”.?

• Right people on the right project / job
• Lower turnover rates
• Reduced hiring costs
• Improved productivity
• Marginal training / knowledge costs

3. Operational Agility

COOs will find that a skills-driven approach allows for greater operational agility. Skills-based internal mobility means that talent can be dynamically allocated to the most critical projects, ensuring that the organization can quickly adapt to changing business needs. This flexibility is particularly important in today’s fast-paced business environment, where the ability to pivot can be the difference between success and stagnation.

The Road Ahead: Why It Won’t Happen Overnight

So, will the C-suite start raving about skills as the new currency tomorrow? Probably not. The shift requires a deep cultural change, new tools and technologies, and a commitment to continuous learning. But the potential rewards are too significant to ignore. By embracing a skills-based approach, organizations can position themselves to thrive in a world where change is the only constant.

As leaders, it's time to think beyond traditional job roles and focus on the skills that will drive your organization forward. It might not be an easy shift, but it’s a necessary one. And when the time comes, those who have invested in building a skills-based culture will find themselves well ahead of the curve.

By adopting a skills-first mindset, organizations can navigate the complexities of the modern workplace and ensure that they are prepared for whatever comes next. So, is your organization ready to embrace the new currency of work? The time to start is now.

So, CFO set skills on the agenda of your next board meeting and ask not only what it will cost, but what it will saves you.

Jan-Willem Nieuwenhuys is Chief Skills Officer of Digital Skilled Professionals and a trusted advisor in the field of skills-first organizations. Independent strategic advise and project management support for learning and skills management solutions.

Solve productivity and engagement issues to organise work, projects & people around skills.

DM me here .

Jan-Willem is also host of the Learning & Skills Management podcast ??

Work changes quickly. Learning and transforming is a challenge for organizations. In these podcasts, we have conversations with learning leaders, professionals, and solution providers who have applied successful methods to transform a business environment.

Sources:

• HR Executive - Skills: Putting this new currency of work into action
• Workramp - Why Companies Must Embrace Skills as the New Currency With David Blake, CEO & Co-Founder, Degreed
• Fuel50 - Are Skills the New Currency in the World of Work?
• Amy Christensen of Asana - Skills are the new currency in the world of work