The impact of a skills-first approach on employee retention and satisfaction

So much positivity can come out of a skills-first approach to business operations, especially when it comes to employee retention and satisfaction. Technology has massively shifted the way we can build knowledge and receive education — that’s the long-winded way of saying academic achievements hold a different weight than before when it comes to demonstrating skill (but that doesn’t mean it’s not valuable!). 

You’re more than just your academic accomplishments.

The skills-first approach redefines workforce management by focusing on the diverse capabilities and potential of individuals. From the recruitment stage, this signifies the organization’s determination to create a culture of inclusivity and diversity by valuing skills. The result? A more dynamic workforce, where employees, regardless of their educational background or previous job titles, find opportunities to grow and excel based on their competencies. 

So, what happens when you adopt a skills-first approach? 

As an organization, you:

• start to pay attention to the individual strengths of your employees and make use of them as efficiently as possible.
• tailor employees’ career development to their specific skills and aspirations, so they continue to grow their skillset.  
• identify ways to upskill your workforce, so that you can keep pushing for efficiency and innovation.

What does that do for the employees? 

• Acknowledging their strengths can enhance their sense of worth and belonging. 
• Taking time to personalize their career development shows that the organization values their contributions and wants them to grow with your organization.
• Employees engaged in using and improving their skills are less likely to seek fulfillment elsewhere.
• Encouragement to take on opportunities for skill enhancement and upskilling can instill a sense of achievement and motivation.

Recognition and appreciation of their skills, strengths, and potential is a powerful motivator that stems beyond monetary rewards and taps into higher levels of need fulfillment like a sense of achievement, purpose, and respect (hello Maslow’s hierarchy of needs). Don’t overlook the importance of these!

We’ve shared our take on becoming a skills-first organization, how you can build a skills-first culture, and how a skills-first approach to hiring can benefit your business. What’s left now is to take action. If you’re looking to improve employee retention and satisfaction beyond monetary and fringe benefits, consider growing the organization with your employees — give them more reasons to stay by showing the value and potential you see in them. 

We’re here to help businesses identify the skills they have and support their training efforts to develop the skills they need — through Skills Intelligence! Skills Intelligence empowers organizations through data-driven insights to make critical workforce transformation decisions. Reach out to us and let’s help you and your employees grow together.