What Is A Skills Taxonomy Anyway? Understanding The Market For SkillsTech
Apr 18, 2021
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The podcast dives into the urgent need for businesses to adopt effective skills management systems amidst a competitive job market. It highlights the role of algorithms in assessing and connecting skills across job roles. Listeners learn about the complexities of skills taxonomy and the intricacies involved, especially on platforms like LinkedIn. The discussion emphasizes the importance of human input in refining these technologies and forming specialized teams to leverage skills effectively, making it a crucial topic for modern organizations.
A well-defined skills taxonomy helps organizations categorize necessary competencies, guiding employees in their career development and training needs.
Investments in skills management technologies require strategic alignment with business goals to ensure effective adaptation to market demands.
Deep dives
Understanding Skills Taxonomy
Skills taxonomy involves organizing the vast array of skills that individuals possess in a structured manner. This taxonomy is crucial for identifying and categorizing the specific competencies required in various roles, which can range from technical skills like coding to soft skills such as communication. An example provided highlights the distinction between 'skills'—which are specific abilities that can be measured—and 'capabilities' that encompass broader competencies, such as objection handling in sales. By developing a clear skills ontology, organizations can better guide employees in their career paths and training needs, enabling effective continuous learning and adaptation.
The Role of Software and Data in Skills Management
The podcast emphasizes the increasing importance of leveraging sophisticated software solutions in the realm of skills management. Various software vendors offer tools that analyze existing data to infer skills from job descriptions, resumes, and performance reviews, aiming to facilitate better hiring and training decisions. For instance, firms like EdCast and Eightfold are mentioned as notable players developing advanced solutions to draw connections between individuals' experiences and their skill sets. However, the lack of standardized skills taxonomies means that organizations must critically evaluate and choose software that aligns with their specific industry needs and internal structures.
Strategic Skills Management for Business Success
Organizations must take a strategic approach to skills management, aligning their skills taxonomy with business goals to remain competitive. This involves understanding the specific capabilities needed within the market context and ensuring that the workforce possesses the necessary skills to adapt. An example illustrates how a software company had to reassess its employee skill set to align with evolving market demands, transitioning from individual-focused products to integrated solutions. Without this strategic alignment, investments in skills taxonomy may not yield the desired business outcomes, making it essential for executive leadership to actively participate in skills management initiatives.
Business and HR leaders are going through a frenzied focus on skills. As the job market gets competitive and employees come back to new jobs, every company wants to upskill or reskill its people.
For vendors, it’s a red hot marketplace. Vendors from LinkedIn and Microsoft to Coursera, Udemy, Degreed, Cornerstone, and Workday are investing here, and massive investments are coming from SAP, SkillSoft and many more.
What is a “skills taxonomy” anyway and what should companies do? Is this just a market of buying lots of training or is there a whole new way? In this podcast I explain what #skillstech is all about and what companies can do to leverage this innovative new domain.