For decades, most companies have organised work around fixed job titles and rigid roles – but research shows this jobs-based model can actually hold back agility, innovation and inclusion. In a skills-based organisation, by contrast, each role is defined by the skills and competencies needed, not just a title. As Deloitte puts it, forward-thinking firms are placing “skills, more than jobs, at the centre” of how they manage people (deloitte.com). In practice, this means employees are matched to tasks and projects based on their strengths and capabilities, allowing teams to reconfigure rapidly as priorities change.
The need for a skills-first approach is urgent. The World Economic Forum reports that 44% of workers’ skills will be disrupted in the next five years, and about 60% of employees will require training by 2027 just to keep pace (weforum.org). In other words, continuous upskilling is no longer optional – it’s critical. Learning & Development teams must therefore link training closely to strategic skills so that people stay employable and engaged.
Why Skills-Based Learning Matters
Early adopters of skills-based practices are already seeing measurable benefits. For example, research finds that organisations shifting to a skills mindset are much more likely to:
- Move faster: By aligning people to projects by skill rather than slotting them into static roles, companies become more nimble – roughly 57% more likely to anticipate and respond effectively to change.
- Boost productivity: Teams unlock hidden talent when employees can apply skills across functions. Such organisations are about 49% more likely to maximise efficiency by using everyone’s full abilities.
- Improve diversity and inclusion: Hiring and deploying people based on skills (not pedigree or network) removes biases. Skills-first companies tend to have 47% more inclusive cultures, because leaders focus on what people can do rather than where they’ve been.
- Retain and attract talent: A skills-centred environment gives people clarity on growth and career paths. In fact, these organisations are 107% more likely to place talent in the right roles and 98% more likely to retain high performers. Put simply, investing in people’s development makes your company known as “a place to grow,” which in turn boosts loyalty and engagement.
These advantages – agility, efficiency, fairness and better retention – add up to a stronger business. They show why we at DCo encourage every client to build on skills, not just job descriptions, when planning their workforce and learning strategy.
Real-World Success Stories
Some leading organisations are already making this shift. Unilever, for example, no longer treats each job as a fixed chunk of work. Instead, it has created an internal talent marketplace where people move fluidly onto projects that need their skills. Employees may take on short-term assignments (even as “U-Workers” on retainer), letting the company break down silos and tap expertise wherever it’s needed. Unilever leaders report that viewing roles as collections of skills has unlocked new opportunities and faster innovation.
Another example comes from the commercial sector. Property services firm Cushman & Wakefield adopted a skills lens to widen its recruiting pool. They identified transferable skills in former military personnel – like leadership, project management and engineering – and mapped those to open roles in real estate. In doing so, they filled crucial positions from an underutilised talent pool that traditional hiring might have overlooked. In crisis situations, even airlines have embraced skills-first thinking – when Covid disrupted travel, Virgin Atlantic redeployed furloughed flight attendants to assist at hospitals, illustrating how workers can add value beyond their usual jobs.
These stories show that companies focusing on skills can become more flexible and innovative. By viewing every employee as a bundle of talents, they match people to work in new ways – and DCo has supported clients in doing just that.
Bringing Skills to Life: A DCo Approach
At The Development Company (DCo), we believe the shift to a skills-based organisation starts with clarity. First, define what skills really matter for your business. This means creating a clear skills framework or competency model. Deloitte advises to “start with the skills framework” – lay out each role’s expected skills and proficiency levels. Group similar roles by common competencies and build consensus across the leadership team. This framework will serve as your guide for all people decisions.
Next, assess where your people stand today. We often use development centres and 360° feedback to get objective data on employees’ strengths and gaps. DCo’s Development Centres, for example, are like assessment centres aimed at growth: we simulate work exercises and measure how participants demonstrate the required skills. Each person then leaves with a tailored development plan. These insights let us pinpoint exactly which training or coaching each team member needs.
We also leverage tools like Everything DiSC® to boost collaboration. DiSC profiling helps individuals understand their own working style and how to adapt to others. In one client organisation, rolling out DiSC-based management training led to markedly better communication and trust across teams. Teams that “speak the same language” about how they work together are much more effective – and this is essential in a skills-based environment where cross-functional teamwork is the norm.
Finally, learning must be strategically aligned. We design training programmes that build the skills in your framework. For example, DCo runs workshops on core skills (communication, leadership, technical topics) that employees need for their evolving roles. We also offer coaching and mentoring to help people translate new skills into their everyday jobs. By linking our courses to the skill model, every course, webinar or coaching session we deliver directly contributes to your organisation’s goals.
Getting started can seem daunting, so we recommend a staged approach. Roll out the skills model in one department or function first, then expand. Invest in a central skills database or “talent bank” to track people’s abilities over time. Be prepared to iterate – the skills architecture should evolve as your business changes. At each step, communicate the benefits: when employees see how learning new skills helps them take on interesting projects or advance their careers, the culture will naturally shift.
Steps to begin your skills journey:
- Define your skills framework: Develop a clear competency model that lists the skills (and proficiency levels) needed for each role. This becomes the blueprint for hiring, development and progression.
- Assess current skills: Use tools like development centres, surveys or skills audits to map what your people can do today. Compare this to your framework to identify gaps.
- Pilot and iterate: Try the new approach in one team or function first. Provide targeted training or coaching (for example, using DiSC or bespoke programmes) to address gaps, then refine the framework based on feedback.
- Scale and embed: Gradually roll out skills-based hiring and career planning across the organisation. Link performance reviews and promotions to skill development. Celebrate successes (e.g. internal transfers or promotions gained through skills growth) to reinforce the change.
Throughout this process, DCo is here to help. We can facilitate skills mapping workshops, run assessment/development centres, deliver DiSC sessions, and build tailored learning paths. Our expertise in psychometrics and competency-based coaching means we’ll keep your people at the centre of the change.
Conclusion
Moving to a skills-based model is a journey, but it’s one we’ve seen pay off again and again. By focusing on skills – and investing in the right training and support – you unlock agility and employee potential. People feel valued as whole individuals with clear development, and companies become more innovative and resilient. As research shows, organisations that put skills first consistently outperform their peers on metrics like productivity and retention.
At DCo, we believe building a truly skills-first organisation is a journey best undertaken together. We partner with HR leaders, L&D professionals, and executives to design tailored skills frameworks, run engaging development centres, and introduce DiSC programmes into your culture. Whatever your goals – from aligning learning strategies with your business objectives to building future-fit teams – our team is here to help.
We’d love to continue this conversation. Feel free to drop us a line or schedule a chat to explore these ideas further – no pressure, just a friendly conversation about how we can support your organisation’s journey to become more skills-driven. Let’s build something great together.
