skills-based planning: build the team you need next.

In an uncertain economy, employees around the globe are challenged to acquire new skills and make lateral career moves. This, in turn, is nourishing the foundation of creating teams with more diverse professional backgrounds and skill sets. For employers, this presents both a challenge and an opportunity — skills-based workforce planning.

Creating clear upskilling paths and career ladders is a more significant challenge when teams have multifaceted career histories. Additionally, the pace of technological and market shifts complicate employee skill development paths.

However, teams with a broader range of professional skill sets can help employers stay agile. Employers able to tap into the full range of skills their teams offer will have a competitive advantage over the long term.

what is skills-based workforce planning?

Skills-based workforce planning involves reiterating outdated, role-based playbooks with employee skills to create diverse internal opportunities. Employers benefit from more agile teams, while employees benefit from the opportunity to realize their potential. Many other companies are following suit: our recent talent trends survey found that 83% of companies are already moving towards a skills-based management model to stay competitive in the years ahead.

This step-by-step approach offers you a blueprint to hiring diverse teams with varied backgrounds and strengths using skills-based workforce planning.

1. create skills portfolios for each role

Traditional roles rely on predefined on-the-job skills. However, this approach undermines talent development over time. It also fails to anticipate new skills the role will demand in an uncertain future.

To create an adaptable workforce, start by breaking down each role into a “skills portfolio” that structures work around a collection of skills and aptitudes. While you do away with static job descriptions, encourage your current workforce to enhance your organizational skill profile. For example, a financial services firm might create a financial analyst skills portfolio that includes:

Technical skills: Financial modeling, data visualization, and proficiency in tools like Excel or Python.

Cognitive skills: Critical thinking, problem-solving, and the ability to interpret complex data trends.

Interpersonal skills: Collaboration, communication, and the ability to present insights to stakeholders.

Leadership skills: Time management, adaptability, and a growth mindset to embrace new technologies or methodologies.

Digital skills: Familiarity with AI-driven analytics tools or blockchain technology.

While technical skills are important, it’s also crucial to consider what soft skills the role requires, both now and in the future. For example, McKinsey notes that foundational skills can be more predictive of future success than technical skills alone.

2. collect data on employee skill sets

Once each skill is defined, employers can collect data on employee skill sets with a combination of automated and in-person assessments. This data could be used to identify skills gaps and opportunities for improvement, or to uncover latent skill sets that identify growth potential.

Deloitte’s research supports this approach, noting that 79% of employees are comfortable with employers collecting data on their skills. That’s especially true when employers explain that the data will be used to create personalized development plans and ensure equitable opportunities for career growth.

By mapping skills data onto individual career trajectories, organizations can offer targeted training, mentorship opportunities, and stretch assignments that align employee goals with the organization’s needs.

3. personalize learning paths to build new skills

72% of employees say that ongoing skills development is important to them – and 31% have quit due to a lack of career progression opportunities. Yet many HR leaders struggle to implement upskilling and reskilling programs that truly deliver on business goals.

Often, that’s because role-bound skills development can overlook the individual aptitudes of employees. Personalized learning paths equipped with digital career coaching can help harness untapped potential and help them make lateral career moves.

As skill requirements evolve more rapidly, moving from annual performance reviews towards a system of continuous feedback can help. Deployed carefully, automated feedback based on standard benchmarks can offer equitable assessments rather than relying on subjective opinions of employee performance.

4. targeted recruitment and internal mobility

Once employers have a system of employee assessment and development in place, they can create internal talent marketplaces that let employees leverage their new skills. This can involve stretch assignments that let employees put their skills to the test for a set period of time.

As HBR notes, internal talent marketplaces work best with executive oversight to match employees with the right assignments. Having the right data and a certification process in place can help managers match employees with new challenges that best fit their skill sets.

Assignments that are difficult to fill internally can help cue employers on when to bring in external talent. In the latter case, employers can use the data they’ve already collected to adopt a skills-based approach to hiring.

how skills-based workforce planning builds a more resilient workforce.

Skills-based workforce planning doesn’t just help employers stay agile; it also helps them retain top talent. 49% of employees in the US and 39% of employees in Canada would leave a job that didn’t offer learning and development opportunities to build future-ready skills.

However, the way employers offer those opportunities matter. Below are a few key ways that a skills-based approach to development can make a difference for employees.

more autonomy over career moves

A skills-based approach offers employees more autonomy over their career trajectory. Understanding their own strengths and weaknesses can help them make more informed decisions about the next steps in their career.

a clear path to promotions

Employees interested in taking their career to the next level may not always understand what steps they need to take. Structured career development paths can help employees demonstrate clear value that helps them get noticed at work.

low-risk lateral career opportunities

Employees who feel stuck can leverage stretch assignments to explore lateral career moves without taking the risk of leaving their current role. This gives them the freedom to explore new possibilities they may be better suited for.

equitable paths to success

Finally, employee development backed by data can create more equitable paths to success. For example, while over half of Gen Z workers have been offered AI training, just 29% of Baby Boomers have been offered the same opportunity. Data-driven strategies for identifying potential can help level the playing field for everyone.

building adaptable, future-ready organizations starts with skills development.

The skills your employees possess are the building blocks of your organizational potential. Aligning those skills with evolving business needs helps both organizations and employees adapt to a changing world.

Skills-based workforce planning isn’t just about meeting organizational goals; it’s also about creating an environment where employees can thrive. Employees who are empowered to unlock their full potential creates a workplace where employees feel valued and supported in their career growth.

As work environments play a pivotal role in shaping how skills are developed and applied, organizations must also consider how to cultivate spaces—both physical and cultural—that enable people to do their best work. By investing in the growth and well-being of their workforce, employers gain a competitive advantage that allows employees to succeed alongside them.

Ready to take on the new talent plunge? Talk to our talent experts to learn more about best practices for a future-proof workforce.