In a time of rapid digital change, Chris Chesterman examines the ways in which organisations can maximize their human capital through a shift from traditional job roles towards focusing on a dynamic and skills-based approach. He also explores how L&D can use emerging technology to drive measurable increases in skills and abilities.
Human capital remains the most important currency in business, despite all the technological advances we have made over the last 20 years. Companies cultivate talent, identify the best performers, try to retain them, and give them opportunities to grow, upgrade their skills, and take on greater responsibility.
This is done through the use of job structures: these are constructs that bundle (usually related) responsibilities in a more logical manner.
What are the current ‘jobs?’
This logic, however, has been questioned in recent years. It is argued that work is just a collection of tasks and skills. As a manager breaks down a goal into smaller parts to create a project plan, jobs can also be broken into tasks. Just because someone has done a certain task in their role does not mean they are the right person to do it.
It is possible to use your resources more efficiently and effectively by viewing work as a set of tasks that need to be completed and by assessing the skills within your organisation. You can plan your recruitment and L&D efforts with precision by assessing the skills that you will need in five, ten or twenty years.
Now is the right time. Is there any business sector that is not affected by the digital transformation? It’s important to provide your employees with opportunities to upgrade their skills if your human capital is your main asset. You need that knowledge for your business, whether it is a new application in generative AI or the skills needed to market your brand and sell products in an ever-changing digital environment.
Can we map our skills?
It seems like a large consultancy firm would need several months to create a taxonomy that identifies the skills and competencies your business needs, then map each employee to a competency model.
This can be a formidable barrier depending on the size and scope of your organization. Digital transformation helps create an environment that encourages skills-based thinking. It also offers ways to overcome these barriers.
AI can be used to collect data from recruitment resources to build dynamic, reactive systems. These systems will highlight the skills in demand on the job market and show you the skills you are searching for, but may not know you require.
These waters will present opportunities for L&D professionals. L&D professionals will see opportunities in these waters. Instead of discussing engagement and learning content types, they could discuss measurable skill growth across the business. Salespeople with improved negotiation skills; staff who interact with customers with better communication and product knowledge; and marketing people with strong tech and data skills.
Line managers will testify to the fact that they have seen measurable improvements in their ability, and this is reflected in the bottom line. If L&D leaders are able to position themselves as enablers, they will be able to drive a dynamic and evolving capability that yields measurable advantages.
What are the benefits to our people?
Business-wide possibilities are created. Internal recruitment is benefited by a pool that is constantly updating and improving their capabilities. This allows them to quickly adapt to changing roles, as the market or technology demands. The managers have a better understanding of their skills and can discuss this with employees during performance discussions. You create the conditions that allow the organization to grow, instead of waiting for it to happen.
L&D may have the responsibility for skills, but we are all responsible – the CEO needs them to realize his vision of success and the manager needs to use them every day. We shouldn’t overlook the enormous benefit that employees receive from being able take a proactive approach in how their work develops.
Employees who are willing to grow their skills will be more flexible in this environment, even if you ignore the argument that technology is encroaching upon jobs. If you and your colleagues agree that the purpose of an organisation should be to create value for employees and shareholders, offering opportunities to learn, develop, or upskill is a strong argument.
What makes this initiative different from the usual L&D initiatives we have?
Our landscape is changing. As a species we create change through technology or it is imposed upon us. (It’s only been five years since Covid began. This change still has an impact on the way we work. If we put skills at the core of our work, we can create a new level of adaptability to change. The skills-based approach helps us see what is really needed to be successful. It is a part of core HR, learning and offers a fresh perspective on employee-manager relations. Yes, this has historically been a difficult process. Even creating a language framework that described skills in a consistent manner could have taken many months of hardwork and cooperation between departments.
This is no longer true. In minutes, you can create a personalised skills gap analysis. There are already language models that can be easily adapted and tailored. It is still necessary to persuade the leadership, engage managers and employees, and find insights from all the new data. The technology can take care of the admin. Leaders in L&D need to set the course.
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