Skills Management Technology Landscape: Lecture by Steve Hunt

Introduction

• Presenter: Steve Hunt, Chief Expert for Working Technology at SAP
• Focus: Based on the paper "The Skills Management Technology Landscape"
• Series: Second paper in a series on skills management
  • Previous paper: Impact of ontologies on skills management
• Aim: Overview of current skills management solutions in the market and strategies for skills management technology

What is Skills Management?

• Definition: Methods to ensure a company's workforce has the necessary knowledge, qualifications, and technical expertise to execute its strategy
• Historical Context: Practices have existed for 2500 years (e.g., Chinese government assessments in 300 BC)
• Importance: More crucial in the modern economy due to the skills crisis

The Skills Crisis

• Definition: Shortage of people with required knowledge and skills
• Causes: Two Talent Tectonic Forces
  1. Digitalization: Technology is accelerating organizational change and creating a demand for specialized skills while making others obsolete
  2. Demographics: More people aging out of labor markets versus new entrants due to declining birth rates

Skills vs. Competencies

• Skills: What you know how to do (e.g., Python coding, speaking Japanese)
• Competencies: How you apply knowledge (e.g., building relationships, planning)
• Challenges in Skills Management:
  • Numerous skills needed in an organization
  • Rapid obsolescence and emergence of new skills
  • Specialized tools required for skill development

Differences in Management

• Skills: Specific, objectively measurable, can be developed through structured training
• Competencies: Behavioral, context-based, developed through self-awareness and job training

Challenges in Skills Management

1. Identifying necessary skills
2. Measuring individual skills
3. Matching skills to job roles
4. Certifying skill proficiency
5. Developing new skills
6. Keeping track of regulatory compliance and proficiency levels

Skills Management Solutions

Types of Technology

1. Workforce Intelligence & Skills Intelligence: Understanding what skills a company has and needs
   • Tools: Workforce analytics, skills ontologies, inferred profiles
2. Validation: Ensuring skill proficiency
   • Tools: Tests, simulations, computer adaptive testing
3. Matching: Assigning skills to job opportunities
   • Methods: Tag-based, ontology-based
   • Applications: Full-time positions, internal projects, contracting roles
4. Confirmation: Proving proficiency, especially in regulated industries
   • Tools: Checklist demonstrations, validated learning
5. Development: Helping employees gain new skills
   • Methods: Training programs, coaching, social learning, simulations
6. Skills Assignment: Allocating the right skills to the right jobs
7. Evaluation: Financially rewarding skill development
   • Methods: Agile, ongoing compensation management
8. Data Governance: Managing and securing skills data
   • Tools: Centralized HR platforms, talent intelligence hubs

Strategies for Choosing Solutions

• Solutions generally fall into three categories:
  1. Specialized Solutions: Focus on one or two activities
  2. Ontology-Based Solutions: Support multiple activities with sophisticated methods
  3. Platform-Based Solutions: Integrate various tools and data for comprehensive management
• Selection depends on specific company needs and existing challenges

Future Market Trends

• Consolidation and Innovation: Some solutions will merge, fueling new innovations
• Core HR Platforms: Will play a crucial role in integrating skills management with broader talent strategies

Final Thoughts

• Importance for Companies and Society: Effective skills management is critical not just for organizational success but also for employees’ careers and societal well-being
• Action Steps: Companies need to invest in skills management solutions

Resources

• Further Reading: Paper detailing more examples and another paper on skills ontologies

Conclusion

• Key Message: Addressing the skills crisis with effective management strategies and technology solutions is essential for companies, employees, and society as a whole.