Why skills matter more than job roles: The importance of the skills-based organizational model
The skills-based organizational model is taking over. As we embrace the technological age, job roles and job descriptions change quickly. Meaning, the skills required to perform them have to be adapted at an ever-growing rate. To avoid skills gaps, companies need to shift focus from traditional roles to being more adaptable and agile.
As a result, a shift is taking place where businesses are adopting a skills-based approach. This means looking at employees in terms of the current skills they possess, and identifying the right skills for them to learn. Not focusing only on experience within job roles.
This article will discuss the skills-based organization, the benefits of a skills-based approach, and the best ways for businesses to become agile and implement changes moving forward.
Table of Contents:
- What is the skills-based organizational model?
- Breaking down the skills-based organization
2.2 Squads
2.2.1 What is a squad in a skills-based organization?
2.3 Tribes
2.3.1 What is a tribe in a skills-based organization?
2.4 Guilds
2.4.1 What is a guild in a skills-based organization?
2.5 Chapters
2.5.1 What is a chapter in a skills-based organization? - The benefits of the skills-based approach
3.1 Adaptability
3.2 Accelerate employee development
3.3 Cut talent acquisition costs - What is a talent-management solution and why is it useful?
4.1 How DevSkiller TalentBoost can help you transition to the skills-based model?
4.2 What makes DevSkiller TalentBoost unique? - Summary
1. What is the skills-based organizational model?
There is an old saying, that “if you bend, you might not break.” Age-old advice for anyone in a difficult situation to try to be more flexible. This is exactly what is happening to businesses that are currently adopting skills-based practices. Global companies like Spotify, Apple, and Cisco have implemented the skills-based approach, to ‘bend’ to the demands of the changing world.
While some leading organizations, particularly in the tech sector, have seen significant success with a new operating model based on skills-based practices, most organizations continue to focus on traditional job titles and role-based practices. Only a small few organizations have tapped into the potential that the skill-based approach brings. As the World Economic Forum reported,
“Shifting to a system where skills are the core currency of the labor market thus has the potential to tackle existing inefficiencies in job-fit between employers and employees.”
The traditional operating model for work, based on job experience, is so ingrained into business culture that it is difficult for some organizations to even imagine an alternative. It is the common language of business. In jobs-based practices, for decades there have been those responsibilities that a role entails, and those that it does not. That system is familiar, it is tried and tested, but it is also rigid and leaves little room for organizational agility.
The skills-based organization, by contrast, is a shift to developing talent in-house. It is a way to organize work so as to increase flexibility and create agile organizations. Skills-based approaches to business are not about breaking the wheel, but modifying it for modern roads.
“Few organizations will be willing to abandon jobs and hierarchies entirely. But there might be certain spots in your organization where doing so, either fully or partially, will yield significant benefits.” – Deloitte
The traditional system is under scrutiny because working life has changed and businesses, particularly those in the tech industry, need a more agile operating model for work, that can keep up with the changing demands of the modern world. Taking a skills-based approach, focused skills-based talent practices, is the answer. In a critique of the traditional working model, Syzygy wrote:
“Much-needed actions are usually taken too late, and it’s hard to say if and when they were taken, or they are not taken at all. The flexibility of the entire organization suffers.” – Syzygy
Source- World Economic Forum
Most tech jobs (and skills) advance so quickly, they are in a constant state of evolution. According to the World Economic Forum, by 2025, companies estimate a large percentage of workers will require reskilling. They go as far as to say, “94% of business leaders report that they expect employees to pick up new skills on the job. “
As technology undergoes rapid advancement in every sector, new job titles are being created every day, and the skills required to perform traditional roles are in flux. Big businesses are realizing this change and the pressure is on to keep up.
“60% of HR leaders report pressure from the CEO to ensure employees have the skills needed in the future.” – Gartner
The traditional means of HR leaders hiring and retaining employees—by focusing on resumes and previous experience—is coming to an end. More than ever, it is important to make sure employees have the skills required to perform. That the talent pool is being utilized based on skill sets and not mere experience.
The skill-based organization is a shift to developing talent. A shift that allows businesses to match skills to relevant employees. By doing this, it becomes easier to divide up the work a company does; to make sure all the bases are covered. Entire skill sets can be created around one role or project and new skills can be learned as and when required. Whenever a project needs to be completed, it is simply a case of finding the right employee with the right skills. If no employee possesses the exact skills required, it is easy to identify who is the closest match, and then that employee can be upskilled if necessary.
2. Breaking down the skills-based organization
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More companies need to take a skills-based approach. Whereas traditional role-based organizations work on a fairly rigid, hierarchical system, skills-based organizations are part of a new operating model, based around teams all pulling in the same direction.
“The skills-based organization turns talent management on its head, redefining and reimagining every talent practice to be based more on skills and less on jobs.” – Deloitte
Agile businesses divide work into tasks and assign these tasks to those people with the relevant skills to be able to complete them—regardless of their job role within the company. This system might see an employee who usually works in marketing, working alongside an employee who usually works in customer service. Although these two spheres may not usually cross over, for the duration of a particular project this might be necessary, as both possess skills that are integral to the successful completion of the project.
Skills-based (team-based) organizations are divided in particular ways so as to allow for agility and flexibility.
“Team-based organizational structures are made of teams working towards a common goal while working on their individual tasks." Creately
If you are implementing a skills-based organizational model into your business, it is recommended to follow a similar approach when it comes to organization.
If you are familiar with agile business practices, you may have already heard terms like ‘sprint’ and ‘scrum’. Sporting metaphors transferred to business. A scrum in rugby or the NFL is the moment a small group of players converges together to discuss their next play. In modern business, this is the same, a group of employees getting together to discuss what they have coming up.
Skills-based organizations build on this idea and take it further, by introducing squads, tribes, and guilds. It is an operating model becoming particularly popular in the technology industry, where advancements happen at such a rate, that a fluid approach to business is essential. This allows for even greater agility and most importantly, success, moving forward.
2.2 Squads
2.2.1 What is a squad in a skills-based organization?
Consisting usually of a small group of around 6 people, a squad is a term used to describe a selection of employees with different backgrounds and approaches, working together to come up with innovative solutions to problems. A key factor in the squad, is a horizontal approach to work, as opposed to a linear one.
The thought process behind the squad is that workers in the same sector may approach a problem with a similar mindset. Whereas, workers from different sectors, will likely have different approaches. It is a way for a business to ‘think outside the box.’ There will usually be no hierarchical structure like with the traditional work model, instead, a project manager may be appointed on a project-by-project basis to oversee development.
“The squad methodology organizes the company into self-managed teams with specific objectives.” —MJVinnovation
2.3 Tribes
2.3.1 What is a tribe in a skills-based organization?
A tribe is a set of squads that work on different tasks in a similar field. Each squad will have similar overall goals and will communicate closely together while undertaking separate tasks.
2.4 Guilds
2.4.1. What is a guild in the team-based organizational model?
A guild is a group assembled from different squads who can converse to work on a common topic. A guild can consist of employees from various tribes.
2.5 Chapters
2.5.1 What is a chapter in a skills-based organization?
Chapters are members of the same tribe, with similar skills who cross over from their squads to cooperate on like-minded projects.
Below is a diagram showing an example of the agile setup used at Spotify.
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3. The benefits of the skills-based approach
3.1 Adaptability
One huge benefit of the skills-based approach is adaptability. With this new operating model, agile teams can be formed quickly without the need for permissions to be granted from above. Without a hierarchical system, squads can operate independently of each other, while still under the overall umbrella of the tribe.
3.2 Accelerate employee development
For digital skills, growth is non-linear because having pre-requisite skills greatly reduces the learning curve.
Non-linear career paths have a higher growth potential than those that still follow the old model of career development. Actionable, non-linear career paths enable systematic feedback and development conversations. Employee development can happen at a much faster pace, driving your business forward.
3.3 Cut talent acquisition costs
The global talent shortage challenges the traditional definition of talent acquisition, where recruitment focuses on candidates from outside the organization. A skills-based organization allows a company to easily identify those employees who possess a skillset closest to what is required for a project. Without the rigidity of traditional sectors, it is possible to single out employees for reskilling opportunities, therefore increasing internal mobility. This in turn, can boost employee morale as it shows that growth and development within the company is a priority.
Internal mobility of employees has become the focus for many talent acquisition professionals to manage talent shortages and reduce external hiring costs.
The skills-based organizational model gets results. Take a look at this data provided by Deloitte:
Source – Deloitte
4. What is a talent-management solution and why is it useful?
It is all well and good to say businesses should map out the skills of their employees and adopt more agile talent strategies, but this is also quite an undertaking. Working out the competencies of every employee within your organization and then creating a roadmap to use this information to keep track of all the new skills being learned, is no easy task. This is where a talent-management solution comes in.
A skills-management tool maps out your entire workforce’s skills. It creates a clear path to success by showing the employer exactly what new skills they need to develop. This, in turn, boosts employee engagement and retention. A skills-management solution creates clear learning and development objectives for employees, piquing their interest and ensuring workers progress within your company.
Not only that, but you now have a clear overview of the exact areas where your company needs to strengthen. You can use this data for skills-based hiring, or you can plug skill gaps by identifying those employees already within the company, that possess the most relevant skill sets.
4.1 How DevSkiller TalentBoost can help you transition to the skills-based model?
DevSkiller TalentBoost is a スキル管理ソフトウェア built to define, measure, and manage digital skills. The platform enables the adoption of a skills-based approach to work, through extensive skills mapping and スキルマネージメント. It provides businesses with a detailed skills hub, where they can easily keep track of skill development across the board.
4.2 What makes DevSkiller TalentBoost unique?
DevSkiller TalentBoost was built using 10+ years of skills assessments from a database of over half a million records. DevSkiller is not only a skills management software provider but your strategic partner throughout the entire change process. Our consultancy services will help facilitate the adoption of the skills-based model at your organization.
With DevSkiller TalentBoost you get:
- Predefined skill maps of 3000+ skills
- 500+ skills groups
- 9 out of 10 engagements for employee self-assessment
- Advanced reskilling & upskilling insights
- Skill level assessment and visualization can be viewed on employee, team, and company level
- Actionable career paths for any digital role
Summary
The skills-based organization is the business model of the future. It is a way for modern tech companies to adapt to the ever-changing technological industry. Organizing employees into groups like tribes, squads, and guilds can help. However, skills mapping an entire company’s employees is an extensive task and to undergo such a transformation seamlessly requires a skills management solution. A solution like DevSkiller TalentBoost can extensively map out employee skills, and create a clear roadmap of development, providing information on exactly what is needed to succeed in a project, and the skills the employees involved, need to develop
Learn more about DevSkiller TalentBoost
Feature image – Gerd Altmann from Pixabay
