As AI redefines the structure of work and the skills required, five shifts are presented for companies seeking to adopt a skills-first approach. Research by SkillsRight and commentary from the authors call for the integration of recruitment, development and workforce planning.
AI is reshaping the structure of work and is expected to increase the value of skills such as analysis, judgment and communication, while delegating many routine tasks to AI. As they introduce AI, companies are working to redefine the skills employees need to succeed, and are expected to use skills-first frameworks for recruitment, development and placement.
A study by the nonprofit organization SkillsRight found that 86% of hiring managers support a skills-first approach, while only about one-third apply it consistently in practice. The study points out that implementation requires significant effort and organizational change. Traditional ATSs and HR systems have not kept pace with skills updates, while efforts to improve the interpretation of credentials and the use of new assessment tools are advancing.
While the importance of durable skills such as judgment, critical thinking, adaptability and communication is growing as the essential skills of the AI era, concerns have been raised that current recruitment systems cannot adequately assess them. SkillsRight is working to connect the skills required for jobs with candidates' capabilities through Durable Skills assessments, work simulations and precision matching.
Five shifts are identified as necessary for companies to establish and scale a skills-first approach: 1) address organizational culture, 2) update infrastructure and establish systems to manage skills data, 3) broaden the scope of ownership, 4) apply the approach across the organization and practice it throughout the lifecycle, and 5) incorporate progress into existing KPIs and measure it. Through these measures, companies should aim to make decisions without relying on whether candidates hold degrees.