A recent survey found that the majority of employees prefer to stay with companies that adopt a skills-first approach.
The survey report unveils that 83% of employees are likely to stay with companies that adopt a skills-first approach. At the same time, 87% of the employees believe that their organisations do not fully use their skills.
The findings from the EY and iMocha’ ‘Tech skills’ series titled, ‘Driving economic impact and realizing value with skills intelligence’, show that organisations embracing a skills-first approach can experience up to 5x higher transformation efficiency compared to traditional role-based methods.
The report highlights that 63% of HR leaders observed a positive impact on talent retention, and 58% saw improvements in employee performance due to Skills First Transformation (SFT) initiatives.
It further notes that traditional methods often overlook the full spectrum of costs associated with workforce transformation. Skills intelligence provides a more accurate and holistic view, enabling better cost management, and can yield up to 5x times the efficiency in transformation efforts, a crucial advantage as industries grapple with rapid technological changes.
With increased accuracy from skill intelligence in hiring, training, and employee attrition across organisations, the economic loss due to friction in workforce transformations can potentially be reduced significantly, while improving employee engagement from its low global average of ~23%.
“As skills intelligence gains traction, leaders need concrete data on its impact to move beyond initial trials. Companies should monitor their accuracy rates in hiring, training, and attrition to gauge their true costs and the improvements possible with skills-first transformation (SFT). As more organizations embrace SFT 2.0, we’ll see industry benchmarks emerge, reflecting the real-world impact of skills intelligence,” said Priyanka Gupta, Partner, People Advisory Services, EY India.
“The report demonstrates that a skills-first approach not only addresses the pressing challenge of the skills gap but also unlocks significant economic value by improving the accuracy and efficiency of workforce transformations,” said Amit Mishra, CEO of iMocha.