As companies are reassessing every aspect of the labor force, including how they are viewing jobs within the organization, they are discovering that newer models need to be implemented.
In an article by Deloitte, the consulting firm points out that by “confining work to standardized tasks done in a functional job, and then making all decisions about workers based on their job in the organizational hierarchy, hinders some of today’s most critical organizational objectives: organizational agility, growth, and innovation; diversity, inclusion, and equity; and the ability to offer a positive workforce experience for people.”
This is causing companies to move from job functions to job skills, which operate based on four principles.
Liberating work from the confines of the job by reorganizing work as a portfolio of fluid structures, including and beyond the job
Reconceiving workers from being employees in jobs to being a “workforce of one”—individuals who work on- or off-balance-sheet, each with a unique ability to make contributions and a portfolio of skills and capabilities that match the work
Using skills, rather than jobs, to make decisions about work and the workforce—from who performs what work, to performance management to rewards to hiring
Building a “skills hub,” an engine of skills data, technology, governance, and more, to power these decisions
Deloitte surveyed 1,200 organizations about hiring people based on the skills and capabilities they have rather than the specific jobs and found that a lot of companies are moving toward a skills-based organization. And this movement is coming from both the executives of the companies and the employees.
- Executives, (89%), says that skills are becoming more important in how they are defining work, deploying talent and managing careers.
- Employees (73%) say that skills-based practices would improve their experience at work.
The report also found that an array of benefits from a skills-based organization including:
- 98% say they a more likely to have a reputation as a great place to grow and develop
- 95% more likely to retain high performance
- 57% more likely to anticipate change and respond effectively and efficiently
- 52% more likely to innovate
- 47% more likely to provide an inclusive environment.
While business seem to understand the value of helping their workers become more employable with relevant skills, only 5% strongly agree they are investing enough in helping people learn new skills to keep up with the changing world of work.