Skills intelligence: what is it and why does it matter?

As AI quickly goes mainstream, many executives are coming to the same conclusion: their workforces will need new skills to harness these innovations effectively. From mastering prompt engineering to learning how to spot hallucinations, there’s a breadth of new knowledge that’s quickly becoming table stakes.

Rather than guessing which employees might possess these skills, savvy executives are harnessing a new generation of AI-powered skills intelligence systems to shed light on the capabilities their workforce has and the knowledge they will need.

While these platforms can become game-changers for impactful skills transformations, only 6% of companies currently have systems for real-time skills insights. If your organization hasn’t tapped into these platforms already, here are a few reasons why prioritizing skills intelligence will prove to be a smart move for your people and your business.

What is skills intelligence?

Skills intelligence describes the process of learning who has what skills, analyzing how these people can apply those skills throughout your organization, and making talent and resource management decisions based on this intel. Leaders can harness insights derived from skills intelligence systems to ensure their upskilling and reskilling strategies align with existing knowledge gaps and future skill needs. They can also use these platforms to identify skill-building opportunities such as projects and gigs that will help employees hone the knowledge they need to move into higher-priority roles within their business.

The growing importance of skills intelligence in modern workplaces

While gaining an understanding of workforce capabilities has always been beneficial, skills intelligence is quickly becoming a necessity in the new world of work. As the half-life for learned knowledge shrinks and the pressure to do more with less mounts, leaders must ensure that no skill within their organization goes underutilized.

Every employee has a rich array of expertise that extends well beyond the jobs they were hired to do—and the only way to gain insight into all these capabilities is by harnessing skills intelligence systems. These platforms use employees’ LinkedIn profiles and CVs to capture all the knowledge people have acquired, even if this expertise falls outside of the roles they were hired to perform. As a result, skills intelligence systems capture everything employees bring to the table—and empower leaders to tap into this comprehensive knowledge base.

Why skills intelligence is essential for future-proofing the workforce

If you’re looking to pivot ahead of the curve in the age of AI, think of skills intelligence as your secret weapon. There are five key reasons why skills intelligence is essential for future-proofing your workforce:

#1. Become a skills-based organization

As organizations race to embrace AI, many leaders are implementing skills-centric strategies to ensure their workforces have the capabilities needed to harness these innovations successfully. 61% of business executives say new technologies such as automation and artificial intelligence that require new skills will be a primary driver of their organization adopting a skills-based approach. Businesses that wish to become skills-based must turn to AI-powered skills intelligence systems to gain a 360-degree view of their workforces’ capabilities so that leaders can in turn begin deploying people to opportunities based on their skills and capacities.

#2. Improve workforce agility and adaptability

Skills intelligence systems enable leaders to take skills-based approaches to workforce planning, which will in turn empower them to develop learning pathways that encourage employees to continuously hone new skills.

By aligning workers to projects and tasks based on their abilities—rather than job titles—skills-based organizations are better equipped to pivot and react to challenges in record time. Skills intelligence systems can forecast which capabilities are on the rise and decline so leaders can evolve their upskilling and reskilling initiatives accordingly.

#3. Improve talent acquisition and retention

Employees recognize that they will need to hone new skills to stay relevant—and they’re looking to their employers to put these learning opportunities within reach. 94% of workers believe they will stay with a company longer if it invests in helping them learn and develop new skills. When companies use skills intelligence systems that identify emerging knowledge gaps, leaders can create targeted training programs to ensure employees are learning the skills and capabilities their organizations need most.

#4. Identify critical skill gaps

When organizations implement skills intelligence systems, leaders don’t just get a complete understanding of the knowledge their workforce currently has. Instead, they’ll also gain insight into emerging knowledge gaps so they can create new learning pathways to prevent these talent shortages from snowballing into larger problems. Proactively addressing these skill gaps will help workforces maintain their performance and productivity and ensure their organization has the talent needed to achieve its business objectives.

#5. Reduce total costs and time to hire

Without an in-depth understanding of all the skills within their workforce, leaders run the risk of overspending to hire for in-demand capabilities when someone within their organization already possesses the knowledge they’re looking for. Skills intelligence systems can spotlight which skills are on the rise and identify transferable skills so executives can redeploy internal talent rather than turning to external hiring processes that are costly and time-consuming.

Key components of skills intelligence

While skills intelligence systems vary, most top-performing platforms include the following:

#1. Skills profile

A skills profile is a singular view that captures all of an individual’s skills, abilities, and experiences. They might include a summary of an employee’s work experience and certifications, as well as technical skills and any other relevant information that highlights expertise.

The purpose of a skills profile is to provide a comprehensive overview of an employee’s qualifications, enabling leaders to search for critical skills and gain a roster of qualified talent across the company. As executives begin restructuring jobs or considering ways to move talent from outdated jobs to high-priority roles, skills profiles provide a skills-based view of how to build a redeployment plan.

#2. Skill benchmarking

Since today’s talent landscape is hyper-competitive, leaders need insights to understand exactly how their workforce’s skills stack up against others in the market. Skills intelligence systems should help executives assess the market value of a job and identify whether a capability is on the rise or on the decline. Some systems even provide insights into how the competition is positioning their jobs so businesses can pivot ahead of the curve and make informed L&D decisions to prioritize skill development effectively.

#3. Job architecture management

Even as organizations look to skills-based models, executives still need a framework to understand how roles are structured and a skills-based view of what each role means. This helps them identify what skills employees will need to possess and where their requirements for various roles may be outdated—which is exactly what a job architecture management system provides.

Although job architectures are considered to be the backbone of an organization, manual ones can quickly become outdated and often fail to capture the breadth of employees’ skills. To successfully enact skills-based strategies, leaders must look beyond business units and job codes and harness tools that enable them to deploy talent to projects and tasks at the skill level. These systems also help executives identify roles that may need to be discontinued and those that are on the rise to create efficient and future-looking organizational models.

How to implement skills intelligence into your organization

When it comes to skills intelligence, not all systems are created equally. To ensure a seamless implementation process, leaders must take a variety of considerations into account. From a technical perspective, executives must ask prospective vendors about their experience working with enterprise customers as well as digging into the details about how their systems work and their commitment to harnessing AI ethically.

Beyond learning about the technology, leaders should also prepare for a considerable change management journey. Rather than simply searching for a technology provider, prioritize finding a trusted partner that will work with your organization to ensure you’re deriving maximum value from your skills intelligence system. Consider asking all prospective technology vendors about their change and enablement services, the resources they have available for change management, and whether or not they have a customer community to allow users to share their ideas and experiences.

If you’re looking to learn more about AI-powered skills intelligence systems and uncover which option is best for your organization, check out our Skills intelligence buyer’s guide.