As National Apprenticeship Week draws to a close, Nichola Hay examines the role of skills in organisations and how placing greater emphasis on skills rather than predefined roles can create a more dynamic and flexible workforce strategy.
The current economic landscape presents significant challenges for both businesses and the workforce, as highlighted in the recent Future of Jobs report from the World Economic Forum. The report identifies five key factors reshaping the global labour market, each bringing its own opportunities and challenges. The interplay between these drivers creates complex patterns of job creation and displacement, with varying impacts across industries and regions.
Technological advancements are expected to generate 10 million jobs in digital and tech, while the green transition will create five million jobs through the urgent need to address climate change. These transformative shifts have led policymakers to focus more on the role of skills in navigating an ever-evolving economy.
Transforming role of skills
HR professionals lack confidence of future skills needs, says LinkedIn
The pace of workplace change is accelerating at an unprecedented rate. For example last month, the government introduced the AI Opportunities Action Plan, outlining the UK’s strategy to become a global leader in AI. The plan aims to train “tens of thousands” of AI professionals by 2030.
Further evidence of skills challenges comes from Skills England’s Occupations in Demand index, which reveals that 7.8% of the UK’s working-age population are employed in critically demanded occupations, with an additional 38.5% in roles experiencing elevated demand.
At the same time, key industries such as finance, technology, and sustainability are struggling to fill vacancies, underscoring the urgent need for a new approach.
The rising importance of skills
In the context of recruitment, reskilling, and upskilling, the value of skills is more critical than ever. Businesses are increasingly recognising the skills they need in order to thrive, prompting a shift in how skills are viewed within organisations. Instead of focusing solely on job roles, companies are beginning to prioritise key competencies and abilities.
A growing trend we are noticing is the move towards skills-based organisations (SBOs), which place greater emphasis on skills rather than predefined roles. This approach aligns workforce planning, attraction, recruitment, professional development, performance management, and succession planning with the organisation’s skill requirements.
The shift to a skills-based model
Becoming an SBO means moving beyond rigid job descriptions to a more dynamic and flexible workforce strategy. This shift enables organisations to respond quickly to market changes, deploy talent more efficiently, and create clearer career growth pathways for employees. By prioritising skills, businesses can improve resource utilisation, enhance internal mobility, and build resilience against emerging challenges.
A skills-centric business model also allows employees to transition between roles more easily, leverage diverse skill sets, and foster a culture of continuous learning. By adopting a structured approach grounded in a clear understanding of required skills, organisations can optimise development investments while providing employees with defined career trajectories. This can result in improved operational performance, reduced skill gaps, and a workforce that evolves in alignment with business needs.
Apprenticeships as a strategic solution
National Apprenticeship Week presents an opportunity for organisations to rethink how they can bridge skills gaps through structured development programmes. As companies transition to skills-based models, apprenticeships offer a natural and effective framework for acquiring new talent and enhancing existing workforce capabilities.
By integrating apprenticeships into their talent strategies, businesses can maximise their investment in skills development while contributing to broader economic transformation. This structured approach aligns with national and global initiatives, ensuring organisations remain agile, competitive, and prepared for the future of work.
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