Skills-Based Organizations - The Evidence
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SkyHive Technologies Inc. is a cloud-based workforce management and reskilling software provider founded by Sean Hinton and Sergiy Osypchuk in 2017. It has headquarters in Vancouver, Canada, and offices in California, US.
SkyHive is a Certified B Corporation and generative artificial intelligence software company rapidly reskills companies and communities worldwide. Leading enterprises use SkyHive’s cloud-based applications, Human Capital Operating System™ and SkyHive’s Quantum Labor Analysis® to power the future of work at its most granular level: skills. As of August,’23, Microsoft clients can now use their MACC to purchase SkyHive. “Inclusion in the Microsoft Azure Marketplace will mean that even more organizations will be able to transform from jobs to skills,” says SkyHive Founder and CEO Sean Hinton.Sample Clients:
The World Economic Forum's "Future of Jobs Report" emphasizes the increasing importance of skills-based hiring and development. The report suggests that organizations should shift from focusing on job titles to focusing on skills, enabling greater mobility and agility in the workforce. (Reference: World Economic Forum, "The Future of Jobs Report 2020")
Deloitte's "Human Capital Trends" report highlights the shift toward skills-based organizations. The report emphasizes the importance of skills in driving organizational success. Organizations should build a flexible, adaptable workforce capable of acquiring and applying new skills as needed. (Reference: Deloitte, "The Future of Work: The Augmented Workforce," 2021)
Gartner advocates for skills-based approaches to talent management. They argue that organizations must identify and develop critical skills while fostering a culture of continuous learning and adaptability. (Reference: Gartner, “Building a Skills-Based Talent Strategy,” 2021) In Gartner’s “Future of Work," their research highlighted the importance of a skills-based approach to talent management and workforce planning. Organizations prioritizing skills development and adopting a dynamic approach to talent management were better equipped to respond to market disruptions, changing customer needs, and technological advancements.
LinkedIn Learning: The LinkedIn Learning "Workplace Learning Report "in 2019 found that companies with comprehensive skills development programs were more likely to retain top talent and foster employee engagement. The study showed that 94% of employees would stay at a company longer if it invested in their learning and development.
McKinsey & Company's research suggests that skills-based organizations are more resilient and better equipped to navigate disruptions. They highlight the need for organizations to invest in upskilling and reskilling their workforce to build a competitive advantage. (Reference: McKinsey & Company, "The Future of Work after COVID-19," 2020) In a recent McKinsey Global Survey, 87% of executives say they face a skills gap in the workplace, adding that recent college graduates, a traditionally reliable source of talent, often lack the required competency level for key skills.
Society for Human Resource Management (SHRM) found in a 2018 study that 77% of employees who left their jobs could have been retained, with a substantial portion citing a lack of career development opportunities as a “difference maker” in their decision to leave.
Phenom delivers artificial intelligence (AI) —- powered talent experiences and recruitment solutions to global enterprises. Phenom was founded in 2011 and is based in Ambler, Pennsylvania, and has raised $161.4M in funding over five rounds, with their latest funding being raised on April 7, 2021.
The talent platform complements major ATS technologies such as Workday, Oracle, and SAP with its strong candidate CRM. They have more recently added capabilities to:
• Digitize and consolidate skills, job architectures, and employee profile data.
• Proactively identify skill and competency gaps at the enterprise level and within each department.
• Define employee career paths that can change as the business anticipates redistribution and growth. Identify DE&I opportunities across an organization and address them.
Sample Clients:
1. Foster agility and adaptability: Skills-based organizations are better equipped to respond to changing market conditions and industry disruptions. They can quickly redeploy and retrain employees to meet evolving business needs, resulting in increased agility and competitive advantage.
2. Enhance employee engagement and retention: When organizations prioritize skills development, employees feel valued and empowered. They have opportunities to acquire new skills, grow professionally, and take on diverse projects. This approach can lead to higher employee engagement and satisfaction, which in turn improves retention rates.
3. Drive innovation and collaboration: Skills-based organizations encourage cross-functional collaboration and knowledge sharing. By identifying and leveraging the skills of individuals across different teams and departments, organizations can foster innovation, problem-solving, and creativity.
4. Enable effective talent management: Skills-based approaches enable organizations to better understand the capabilities and potential of their workforce. By assessing and mapping the skills of employees, organizations can identify skill gaps, plan for future workforce needs, and make informed decisions about hiring, training, and development.
5. Embrace the gig economy and remote work: Skills-based organizations are well-positioned to tap into the gig economy and leverage remote talent. By focusing on skills rather than specific roles, organizations can engage freelance or contract workers with specialized skills on-demand, contributing to greater workforce flexibility and scalability.
Helping people make an internal move boosts retention and by expanding people's networks and skills, internal mobility naturally creates more organizational agility.
At the two-year mark, an employee who made an internal move has a greater chance of staying with their company.* Source
An example of skills-based strategies to access underrepresented emerging talent. Growing their teams through an innovative approach and increasing DE&I.
Client: Major US Based Healthcare Network
Problem: Dramatic shortage of diversity in emerging tech talent.
Project: The DE&I team built a recruiting strategy to create a diverse cohort skilling program focused on JAVA.
In less than a month, we leveraged our diversity-driven and talent-mobilization expertise to tailor two signature 12-week full-stack Java boot camps. The project included:
Aptitude tests
Candidates screened for grit, passion, and cultural fit
Delivered tailored 12-week boot camps at no cost to participants
Post placement coaching
Outcome: The program successfully recruited and trained 41 candidates in JAVA —67% of whom were diverse by gender, race, disability, and veteran status. 39 contractors were placed on a six-month contract-to-hire project. 97% of the contractors transitioned to full-time employees after six months. Due to the program's overwhelming success, the pilot was expanded to 300 roles.
An early entrant to the AI talent platform market, Eightfold supports the talent cycle, including recruitment, gap analysis, and skills-based strategies.
In 2021, Eightfold raised $220M in a Series E Funding Round Led by SoftBank Vision Fund 2, at the time, doubling its Valuation in six months to over $2B.
Eightfold AI's Talent Intelligence Platform™ leverages patented deep learning artificial intelligence to help organizations retain top performers, upskill and reskill their workforce, recruit talent efficiently, and reach diversity goals.
In May 2023, Eightfold announced Skills-Based Talent Planning for organizations to analyze, forecast, and future-proof their workforce by assessing skills and resourcing gaps in real time.
