Candidates’ years of experience and academic qualifications are relevant, no doubt. But it’s not the only thing you should rely on when hiring talent: it ‘s the person’s skills that really matter.

This paradigm shift marks the move towards a skill-based economy, where the focus is on the real and demonstrable potential of each professional.

 

What do we mean by skill based economy?

The skill based economy is an economic model in which technical, digital technical, digital, social or cognitive skills become the backbone of employment, talent development and business competitiveness.

In this economy, the important thing is not to have a degree or diploma, but the ability to apply knowledge and adapt to change. Companies that adopt this approach seek to identify, measure and enhance specific skills, aligned with the real needs of their teams and their strategic objectives.

 

5 advantages of the skills economy for the organization

1. Better match between talent and position: priority is given to what the person can contribute, beyond his or her previous track record.
2. More agile and accurate selection processes: by assessing concrete skills, subjectivity is reduced.
3. Reduced staff turnoverTeams are built based on the actual fit with the functions.
4. Greater diversity of profilesopportunities are open to people with self-education or without higher education degrees, for example.
5. More effective internal development: by knowing the skills available, it is easier to design realistic growth plans.

 

Basic principles of the skills-based economy

• Find out what your team can do. Often the talent is already there, but we don’t see it. Mapping the skills of each person allows us to identify strengths, detect shortcomings and make fairer decisions.

 

• Evaluates in a clear and unbiased manner. To work with solid criteria, you need to measure skills objectively. Adaptive tools, without bias or automatic filters, allow you to understand precisely what each person excels at and what they can improve.

 

• Promotes a culture of learning. The skills economy are based on constant improvement. Offer your team real opportunities to keep learning, whether through structured training or day-to-day experiences. Learning should not be an extra, but part of the professional journey.

 

• Facilitates movement within the company. When you know what your team is good at, you can move talent from one role to another without the need to hire from outside. Promoting internal mobility based on skills, not just position or seniority, improves motivation and optimizes resources.

 

• Make decisions based on data, not intuition. Having visibility into the actual skills of the team allows you to better select, design useful training and plan ahead with more confidence.

 

How to implement the skills based economy in your company?

The first step is to understand the talent you already have. Betting on a skills economy involves objectively identifying and assessing skills before hiring or restructuring. This way you can meet real needs, reduce turnover and leverage internal potential. ¿We help you?