Building a Skills-Based Organisation: Lessons from a 30-Year Journey (an Interview with Sandra Loughlin)
Nov 19, 2024
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Sandra Loughlin, Chief Learning Scientist at EPAM Systems and an expert in learning science, shares invaluable insights on building a skills-based organization. She discusses EPAM's 30-year journey towards creating a future-ready workforce and debunks common myths about skills-based structures. Loughlin emphasizes the importance of clearly defining work roles before determining required skills and offers practical advice on selecting the right technology to support skills initiatives. She also highlights the significance of high-quality skills data for driving business impact.
Building a skills-based organization demands a clear strategy for data integration, emphasizing the importance of diverse work-related data sources beyond traditional HR systems.
Successful skills management challenges common myths, illustrating that a skills-centric model enhances, rather than eliminates, traditional job roles while fostering greater business agility.
Deep dives
The Growth of Skills-Based Organizations
The concept of skills-based organizations plays a pivotal role in the advancement of people analytics. Approximately 50% of analytics teams are aiding companies in transitioning towards a skills-first structure, highlighting the significance of quality skills data for effective transformation. Such data is foundational and often challenging to manage, yet it is essential for defining ways in which organizations can support employee development based on skills. This transition towards a skills-centric model is increasingly recognized as a vital component for organizational success.
Myths and Misconceptions in Skills-Based Models
One prevalent misconception is that adopting a skills-based model implies an elimination of traditional job roles. In reality, while organizations still maintain jobs, the focus shifts from a rigid, top-down job definition to a more dynamic, data-driven understanding of roles based on naturally occurring work clusters. Additionally, skills and tasks should be viewed as data constructs, emphasizing the need for high-quality data to inform decisions across the business rather than viewing it solely as an HR concern. Notably, in a skills-based organization, the responsibility for aligning skills with business strategy rests with the business itself, showcasing a collaborative approach.
Starting a Skills Journey: Essential Steps
For organizations embarking on their skills journey, it is crucial to first define the 'why' behind their efforts, centering on business agility rather than just HR optimization. Understanding the changing demands of technology and the competitive landscape is vital for aligning workforce skills with organizational objectives. Companies should delineate their operating models, including the roles of business and HR, while identifying key positions to prioritize without overwhelming resources. Establishing a clear strategy for data collection and integration across systems will set a solid foundation for effective skills management.
Integrating Technology and Data for Skills Optimization
Organizations must recognize that effective skills management requires comprehensive data integration, which goes beyond traditional HR systems to include diverse sources of work-related data. Successful skills strategies involve leveraging task intelligence tools to break down job roles into specific tasks, facilitating better skills alignment and understanding of workforce dynamics. Investments should focus on developing data-driven solutions and building task ontologies tailored to the organization's needs to enhance decision-making capabilities. As the technology landscape evolves, this strategic approach will enable organizations to harness skills intelligence, ultimately leading to a more agile and responsive business model.
What can we learn from an organisation that has been a skills-based pioneer for over 30 years?
At EPAM Systems, building a future-ready, skills-based workforce has been a foundational strategy, positioning the company as one of the most mature examples in the field. In this episode of the Digital HR Leaders podcast, host David Green is joined by Sandra Loughlin, Chief Learning Scientist at EPAM Systems, to discuss the lessons EPAM has learned over its decades-long journey and how organisations can apply these insights to their own skills transformations. Together, they dive into:
The structure and strategy behind EPAM’s skills-based evolution, shaped by 30 years of experience in skills management
Common myths around skills-based organisations
The importance of defining the work itself before pinpointing necessary skills
Practical guidance on selecting the right technology to support skills-based practices
Approaches to validating skills data, moving beyond self or manager assessments to more reliable data sources
Insights on tailoring a skills strategy to different industries and functions, and determining when high-quality skills data is a must
This episode, sponsored by TechWolf, is essential for HR leaders seeking to drive business impact through robust skills data and build a truly future-ready workforce.
TechWolf is an AI-powered solution focused on one mission: delivering reliable skills data for every role and every employee in your organisation.
With TechWolf, companies like HSBC, GSK, IQVIA, Workday, and United Airlines have accelerated time-to-hire by 32%, boosted internal mobility by 42%, and saved around $1,000 per employee annually on talent management. Visit techwolf.com for more information.