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Don’t Leave People Out of the Skills Conversation, Y’all!

In this episode of Transformation Realness, I’m sitting down with Toya Del Valle, chief customer officer at corporate learning platform Cornerstone OnDemand. As one of the leading players in the skills space, Cornerstone has been making major moves to help organizations build workforce agility, including through the acquisition of SkyHive.

Toya’s background is in the high-stakes world of airline transportation, where she supported organizations through 9/11 and the Hudson River landing. “Being an HR leader in that space, it brings the HR, the talent, operations, people learning — it brings it together,” she says. “Cornerstone has been a really great place for me to continue that learning and growth, bring in what I’ve learned through that experience, but then also just fly and do even more with the folks that are here now and the way the world is changing.”

Toya brought some serious realness to our conversation, reminding us that skills are fundamentally about people. It’s not just about finding the right talent or building fancy new tech — it’s about creating a culture where people can thrive and grow within their organization. 

You’ll want to take notes for this one, folks. Toya dropped some serious truth bombs. Special thanks to the team over at Glider AI for making this episode possible as a sponsor!

Why Skills Are More Than Just a Buzzword

We all know that skills are having a major moment right now — but what does it actually mean to build a skills-based organization? “Everyone talks about skills and many folks are trying to figure out: what [are] skills? What [are] competencies? What do I do with it? Is it a buzzword? What really is it?” Toya says.

For her, it all boils down to agility.

In a world where disruption is the new normal, businesses need to be able to adapt quickly to changing market conditions. And the only way to do that is by having a workforce that’s equipped with the skills they need to pivot on a dime. “It’s the absolute glue that’s going to move us forward,” Toya says.

But here’s the thing — you can’t just recruit your way out of a skills gap. As Toya points out, there aren’t enough people in the world to fill every open role, and even if there were, simply hiring someone with the right skills doesn’t mean they’ll thrive in your organization. You’ve got to invest in developing your existing employees, too.

Practicing What You Preach: Building Skills at Cornerstone

I was super curious to hear how Cornerstone was approaching skills internally, given all the work they’re doing to enable skills-based strategies for their customers. And Toya didn’t disappoint. Turns out they’re “drinking their own champagne,” as they say in the biz.

Cornerstone is using their own tech and talent strategies to help their customer success team stay ahead of the curve. “As we continue to build capabilities for the organizations and what the customers expect from us, we have to be able to deliver,” Toya says. “Part of that is ensuring that our team members … know how to utilize AI not just as a tool, but as a transformation journey so they can meet those outcomes.” This includes using AI to personalize learning journeys, identify skills gaps and recommend career paths — all within the Cornerstone platform! 

Toya also shared that Cornerstone is using the data they’ve gathered from their customers and their acquisitions, like SkyHive and Talespin, to inform their own talent strategies. It’s really cool to see them practicing what they preach — and using their unique insights to help their customers do the same.

Customer Success Is More Than Just Checking Boxes

One of the most refreshing things about my conversation with Toya was her focus on value. “We talk a lot in my team about value. How are we bringing value to organizations?” Instead of just checking boxes and delivering features, she’s challenging her team to think about how their work is actually driving business outcomes for their customers.

She shared a powerful example of a banking customer who was struggling with compliance reporting. Instead of just helping them build the right report, Cornerstone’s customer success team dug deeper and realized that the bank’s underlying goal was to open a new branch in an underserved community. By understanding the bigger picture, they were able to deliver a solution that not only helped the bank comply with regulations, but also made a real difference in the lives of people in that community.

I love Toya’s take on customer success as a force for good, and I think it’s something we can all learn from. Let’s move beyond just building features and start thinking about how our work can create real value for our customers and for the world.

People in This Episode

Transcript

Kyle Lagunas:

Hello, my little blueberries, and welcome back to Transformation Realness, the only show all about people who are doing their best to make the world of work less sh*tty and have the guts to share their story: the good, the bad, and most of all, the real. This podcast is produced in partnership with Rep Cap and hosted by yours truly, the unstoppable, unbelievably charismatic Kyle Lagunas, Head of strategy and Principal Analyst at Aptitude Research, the leading boutique research firm covering HR tech and transformation. Get into it. 

Special thanks to the team over at Glider AI, whose sponsorship made our Transformation Ecosystem EP possible.

Today, I am sitting down with none other than Toya Del Valle, Chief Customer Officer at Cornerstone OnDemand. Over her 10 plus years at Cornerstone, she’s overseen their transformation into a powerhouse of skills-based talent strategies. 

But wait — there’s more.

Before Cornerstone, Toya led teams in the airline industry through historic moments, including the Hudson River landing. Yeah, with Tom Cruise, he was there, I think. I saw the movie. We are also joined by Madeline, who, as you recall, is my illustrious, invincible, incredible business partner. Madeline Laurano, Founder and Principal Analyst here at Aptitude. 

In this episode, we are talking with Toya about the future of workforce agility, why skills are more than just a buzzword, and how Cornerstone’s latest moves, including their acquisition of SkyHive, are reimagining what it means to be ready for what’s next. Let’s dive in. 

Hey, everybody, it’s Kyle back for another episode of Transformation Realness live from HR tech with Madeline, my BFF, my OG, my boss. She’s in charge here. Speaking of boss, we also have a boss lady here. Hi, Toya Del Valle.

Toya Del Valle:

Hello. How are you? Great to see you both.

Kyle Lagunas:

We’re actually really excited to be sitting down with you. I mean, honestly, the five-letter word that nobody can stop talking about is skills in our space right now, and one of the leading players in the space, with probably some of the most product innovation, is Cornerstone OnDemand. Maybe you’ve heard of it.

Toya Del Valle:

I have. I’m proud member of the team.

Kyle Lagunas:

Yes. Actually, how long have you been at Cornerstone?

Toya Del Valle:

A bit over 10 years. I’ve heard it’s a real transformation journey of that Cornerstone to today’s Cornerstone to the future of Cornerstone, so pretty excited.

Kyle Lagunas:

She’s ready for it. Well, tell us a little bit about your background, because when we talked before, I was actually stunned and could see some of the best practices you were pulling through into the SaaS space. I think it’d be really helpful for people to know the leadership that you’re bringing to the table.

Toya Del Valle:

Absolutely. Prior to coming to Cornerstone, as I’d mentioned, I’ve been here just over 10 years, I spent 15 years in the airline transportation, so working for the largest carriers in the U.S. and internationally, leading operations teams and also HR and people teams. I was in the airline industry from the 9/11. I was with Northwest Airlines during that period of time, leading in customer care and customer operations. I say that my team and I were the first TSA, in the sense when the airlines operated, we mobilized and did that. I was with U.S. Airways whenever we had the landing on the Hudson and managed that critical incident, which was very successful to the lives of those individuals. When I think about operations-

Kyle Lagunas:

Yeah, Tom Hanks made it through.

Toya Del Valle:

Made it. When I think about the power of operations and what that must be for individuals that are being serviced with the solution, with the product, with the service, and I think about what’s important for success to look like towards an outcome, all of that has come together. Also, being an HR leader in that space, it brings the HR, the talent, operations, people learning, it brings it together. Cornerstone has been a really great place for me to continue that learning and growth, bring in what I’ve learned through that experience, but then also just fly and do even more with the folks that are here now and the way the world is changing.

Kyle Lagunas:

Now, do you see why I wanted to sit down with Toya?

Madeline Laurano:

Yes. I’m so impressed.

Kyle Lagunas:

Honestly, just such a baddie. Well, especially, all right, we started with skills. You guys made a major acquisition that I think really enhanced your go-to-market, your strategy capability around supporting skills-based strategies. Do you want to talk a little bit about SkyHive at all? Yeah. How’s that been going?

Toya Del Valle:

How that fits in? Sure, absolutely. We’ve always had skills embedded into our overall platform with the acquisition of Clustree and how we’ve just been building. But now, with SkyHive, is an absolute game changer to the now and the future of skills. Everyone talks about skills and many folks are trying to figure out what is skills? What is competencies? What do I do with it? Is it a buzzword? What really is it?

Kyle Lagunas:

Why does this matter?

Madeline Laurano:

How do I get started?

Kyle Lagunas:

Yeah.

Toya Del Valle:

How do I get started is number one in that. What SkyHive is doing with us is that it has brought on this magnificent platform of data intelligence that really puts together, not— its skills, but not more than skills in the sense of what is happening in the world, what is needed, what is sitting out there that folks don’t know how to do it, what it is, and how do they embed it into their organizations so they can meet those future needs. 

Instead of skills being a skill, it is a transformation into the workforce agility or the gap that we see within the world of how we move from what we need individuals to do from an organization standpoint and how do we actually get there. It’s the absolute glue that’s going to move us forward.

Kyle Lagunas:

I mean, I think so too. I didn’t see the acquisition coming at all, and I was just like, great work. Really good.

Madeline Laurano:

Yeah. I mean, there are large providers that are tackling skills as you are at Cornerstone, and then there’s providers that are really specific on supporting a skills-based approach to talent. SkyHive was one of those providers, so to see that as being the first company get acquired was very cool.

Kyle Lagunas:

Yeah, I think what I really love about the way you guys are thinking about this skills-based— Any talent strategy, any HR strategy that is designed in a vacuum without context, without connection, without relevance, how’s it going to be impactful? It’s just going to be another HR pet project. We got to make sure that this stuff is actually moving the business in the direction it needs to, getting us more resilient to disruption and helping us to be a little bit more future-proof, and, dare I say, agile. I think that might be a magic word of the day.

Toya Del Valle:

Oh, yes. Skills is about people. It is about people, just like we talk a lot about AI. AI is about people, should be about people.

Kyle Lagunas:

Yeah, yeah, yeah. Yeah, it has to.

Toya Del Valle:

I think you’ve talked about the human first. That’s what it has to be about. All of these are tools and ways of moving from one place to another, but the foundation of that being… Agility, because we have to be agile, because look, we really don’t know exactly what the future holds. We have forecasting, and designs and a hypothesis. This is allowing that agility, that flexibility, to say, “I know that I’m a learner. How do I even be a learner so that I can be prepared for what’s next? How do I pivot?” Those are skills, dare I say, to know how to get into that next phase. All of that is critically important. I’ll also add that as important as recruiting is, and it is very important, companies cannot recruit themselves out of this.

Kyle Lagunas:

No, I totally agree.

Madeline Laurano:

No, they can’t.

Kyle Lagunas:

They’re trying to.

Toya Del Valle:

Some are. It’s not going to work.

Kyle Lagunas:

Actually, I think they’re doing the same thing with skills they did with diversity. They’re trying to recruit their way through diversity and leaving off EIB. They’re missing the whole point.

Madeline Laurano:

Yeah.

Toya Del Valle:

I mean, diversity, you make that a recruitment thing, but you don’t create the right environment for those individuals to join and be a part, not an add, but a part of the organization. Same with anything else. It will not be successful. It’ll not be successful.

Kyle Lagunas:

But so is skills, I think, is actually… I hadn’t really thought about it. We’re trying to just buy skills. 

Especially, are these people going to fit into our organization? What do we do with the people that don’t have the skills that we are actually looking for right now?

Madeline Laurano:

It needs to be dynamic. It changes all the time, so how do we evaluate?

Kyle Lagunas:

Yeah, got to be on top of it.

Toya Del Valle:

And that is that gap. You have to bring people forward. You have to bring people together, because even if you thought you could recruit yourself out of this, there’s not even enough people. It’s like everyone’s going to do it. No, keep that culture within your organization and start showing successful pathways for this is where I started in the organization, this is how I grew into the organization. You begin to create the culture that must be necessary for growth.

Kyle Lagunas:

Yeah. It’s like this is the path to the future for me in this organization. We’re not just talking about workforce agility as an enterprise capability, although it is. It’s like, I want to be future-proof. I want to be recession-proof myself. So interesting. Well, one of the other things that I really like about the work that you’re doing is I feel like you’re practicing what you preach as somebody that is leading the customer organization for… I mean, Cornerstone offers a lot of transformative capabilities. HR struggles with change management, they struggle with long-term program management. I really think you have built out, for your customer success organization, a lot of different capability, a lot of different expertise. It’s like you are leveraging skills-based talent strategies yourself, right?

Toya Del Valle:

Yes. I say that Cornerstone benefits from Cornerstone.

Kyle Lagunas:

Yeah, it has to. In this space, you have to practice what you preach.

Toya Del Valle:

I can’t think of any organization that would say honestly that they’re immune from skills. They’re immune from this gap. They’re not. What we have done at Cornerstone is that we have identified, okay, great. Here’s where we are, here’s what our customers expect of us. This is how the world is changing. How are we going to be ready as we continue to acquire new organizations? As we continue to build capabilities for the organizations and what the customers expect from us, we have to be able to deliver. 

Part of that is ensuring that our team members know how to deliver. They know how to utilize AI not just as a tool, but as a transformation journey so they can meet those outcomes that’s expected of us because we have the data that we have. No one has data like we have related to the customers that are within our own portfolio. The acquisitions, the talent intelligence that SkyHive brings, the data that Talespin brings forward with VR. I mean, all of that is just pretty magical. But if we don’t practice, and enable, and transform our own team-

Kyle Lagunas:

Your team doesn’t know what to do with it, how is your customer?

Toya Del Valle:

They’re just going to be tools, and there’s a lot of tools. The difference between the tools and activation and growth are the humans that will continue to empower them, and including AI that is powered by humans.

Kyle Lagunas:

Yeah. Well, I think it’s really cool to see, at this point, a lot of people are investing a lot in tech innovation. I’m not saying Cornerstone’s not, but at this moment, it’s really important that you all are making significant investments in the customer organization. You have to be there for them. You have to help them-

Madeline Laurano:

Understand what they want.

Kyle Lagunas:

Exactly. You’ve got to be that partner, and you can’t do that by just building more features.

Toya Del Valle:

No, and we talk a lot in my team about value. How are we bringing value to organizations? An example that I would give, say, one of our banking customers, and if someone said… I say, “How are you bringing value to this customer?” In the past, someone may have said, “Well, I helped them with reporting, and they really needed this reporting. It was awesome. It was very necessary for their business.” I said, “Okay, but let’s rethink that. Was it the reporting that was necessary or did you help them ensure they have the right reporting so that they can ensure that they were compliant to the regulators so that they could open up a new branch in a neighborhood that maybe was unbanked?” 

Now there’s individuals in this neighborhood that can bank, and they can build, and have a new school or a new home that they have. That’s the power. That’s how we think about value differently, that yes, we are creating or solving an issue, but what does that issue do for the organization? That’s the value.

Madeline Laurano:

The customer, right. I mean, you have a lot of customers. I think one thing that’s interesting about Cornerstone compared to a lot of other companies right now is you’ve made 15 acquisitions in the past five years, and that’s a hard job for you because you’re dealing with customers that have different products that are now part of Cornerstone. How do you manage, as a chief customer officer, all of these different acquisitions and different customer expectations under this new agile skills-based approach?

Toya Del Valle:

Sure. We definitely have had several acquisitions, and we’ve done it a couple of ways. One of the things [is] that we bring in these acquisitions for a purpose. We’ve been very careful to not disrupt that very specific talent that we brought into the organization. We found a way to really cultivate that talent, and it’s not just taking those individuals and those products and bringing them into Cornerstone. In some cases, we brought Cornerstone into that acquisition as well because we’ve learned from them, so it’s been kind of a two-way learning process so that we don’t lose that magic, lose the reason why we purchased that product. It’s been two-way.

Saying that at the same time, part of our Galaxy that we just released is about bringing it all together. How does learning management align with learning experience? How does our recruiting come together and our performance connect with the learning component? How does talent marketplace align to skills and bring…? That’s exactly what we’ve done. We’ve taken each part of these acquisitions, which have been very strategic, in the sense that they have been add-ons to existing products that we have or the existing products have been able to carry those additional acquisitions through. They’ve all been very purposeful back to the customer to ensure that the customers have what they need to continue their learning journey, to continue their talent journey, again, to hit the future, future-ready, future-proof, future needs, future ongoing.

Madeline Laurano:

Amazing.

Kyle Lagunas:

Toya, I know you’re a very busy woman and this is a busy week, but thank you for spending some time with us. Really appreciate you.

Toya Del Valle:

No, thank you. I really appreciate you all as well. I mean, you have a very powerful platform and you also share a lot of information. It’s very necessary to really demystify some of these different areas of HR tech and talent, and so thank you all as well for the work that you do.

Kyle Lagunas:

Thanks for recognizing it. It’s mission work, isn’t it?

Madeline Laurano:

It is. It’s hard work.

Toya Del Valle:

I don’t know. It’s hard to clarify something that’s super confusing too.

Kyle Lagunas:

My family still thinks I’m a recruiter.

Madeline Laurano:

Mine thinks I fixed cell phones.

Toya Del Valle:

Mine’s like, “Wait, where are you? Where are you today?” I was like, “Yeah.” Yeah, yeah.

Kyle Lagunas:

No. All right. Well, we’ll let you go, get back to the next one. Thank you, Toya.

Toya Del Valle:

All right, thank you.

Kyle Lagunas:

And that’s a wrap. One more episode of Transformation Realness in the books. Big thank you to Toya for joining us today. What an absolute powerhouse. Honestly, she had me rethinking everything. From building resilient teams to redefining value beyond just ticking boxes on functionality — who knew customer success could get so deep? Well, actually, I think all of us did, and I’m glad we went there. 

Big takeaways for me: you can’t just build features or hire your way out of complex challenges. Real transformation in the world of talent and HR starts from within. And, as Toya said, it’s literally all about the people. Whether we’re talking AI, skills or customer success, humans are the ones that are driving the magic.

Thank you all for listening. Whether you’re here for the laughs, whether you’re here for the insights, or maybe just to prove to your family you don’t fix cell phones for a living, I see you. That’s all the time we’ve got for today though. Be sure to like and subscribe, leave a review, tell everybody you know about how wonderful this conversation was. And hey, we’ve got more exciting conversations coming your way, so stay tuned. 

Until next time, keep it real, stay agile, and remember, transformation waits for no one. Catch you on the next episode of Transformation Realness. This is Kyle, signing off. Goodbye. I miss you already.

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New Research: The New Era of Internal Mobility

The past three years accelerated the demand for internal mobility solutions. The movement of talent into new positions is not a new trend. Companies have been hyper-focused on internal mobility and career progression at various times periods of uncertainty. For many companies, internal mobility offers the perfect panacea to challenges facing both recruitment and retention by bridging the candidate and employee experiences and reducing turnover.

We launched a new study on internal mobility this year. And, despite this increased focus on internal mobility over the past few years, only one in four companies are confident with their strategies moving forward and 77% have lost talent due to a lack of career development opportunities. Many organizations have adopted a superficial approach to internal mobility by promoting jobs through internal career sites without offering individuals opportunities and development. For other companies, lack of ownership creates barriers for implementing programs and technology.

Fortunately, some companies are turning to skills-based internal mobility and prioritizing how they reskill and upskill their workforce to adapt to the future of work. They are empowering employees, leveraging technology, and encouraging collaboration across multiple stakeholders. A skills-based approach to internal mobility can help connect talent to the right opportunities, personalize the experience, and continuously update with every interaction. It transforms internal mobility from an employer-led initiative to a talent-first strategy.

As companies look to 2023, internal mobility needs to be more than a rally cry. It needs to be a clearly defined strategic investment that is less about moving an individual from job A to job B and more about driving value for the employee.

Here are some of the key findings from our latest study in partnership with Workday.

Metrics that matter: Companies need to consider a new set of metrics for measuring the success of internal mobility. Metrics should incentivize managers and recruiters to provide growth and opportunities for employees while supporting broader DEI and company objectives.

Internal mobility needs to be talent first: Current internal mobility strategies require employees to do most of the work to find their next opportunities for development. Companies promote jobs and employees are left on their own to find what might be next. The next era of internal mobility must make it simple for employees to understand their opportunities and develop the skills they need to be successful.

Internal mobility must empower hiring teams: One in two recruiters are feeling burned out this year and hiring teams are feeling additional pressure to find quality talent quickly. Internal mobility must be talent first, but it also must empower hiring teams by lifting the administrative burden and making it easier to find talent.

Internal mobility must provide personalization: Most companies are not personalizing internal mobility. Fifty-eight percent (58%) of internal candidates go through the same process as external candidates. Internal candidates are treated like strangers to their employer and often do not receive a response.

Internal mobility is most successful when it involves multiple stakeholders: Nearly 50% of companies stated that leadership and CHROs are either owning or directly responsible for internal mobility efforts. They are driving these initiatives and looking to work closely with key stakeholders and creating opportunities for employees.

Skills are a priority: According to this study, 82% of companies identified skills as a priority. Companies are increasing their investment in skills this year and the number one driver is to provide more career development opportunities for talent.

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Key Takeaways from Eightfold’s Cultivate Event

Last week I attended Eightfold’s Cultivate event in San Francisco. It was an impressive two days focused on the trends impacting HR Technology and the future of work, including skills, AI, and talent intelligence. One theme that stood out was the need to embrace change. With the shifts in the labor market and economic uncertainty, companies need to innovate and rethink traditional processes and technology. Companies at this event were asking the tough questions, finding a better way, and creating agile workforce strategies that harness skills and the power of AI.

Eightfold has set the pace for change and transformation in HR Tech. Its skills-based approach gives companies a complete view of talent while empowering individuals to control their career paths. Its platform includes solutions across talent acquisition, talent management, and contingent workforce management (Flex). These pillars are built on a talent intelligence platform which includes a skills matrix, explainable AI, and talent insights. And last week, Eightfold launched its Skills-Based Talent Planning- allowing companies to stay prepared and agile in determining short and long-term talent needs.

With over 1B profiles, 1M skills, and 1M titles, Eightfold has access to more data and intelligence than most of its competitors. Here are my top takeaways from Cultivate.

A Skills-Based Approach to Talent is Not Optional: Every company attending this conference was focused on a skills-based approach to talent. Skills are not a passing trend. It is the number one conversation happening in HR Technology today, and organizations that adopt a skills-first approach will be included. CEO Ashutosh Garg kicked off the event by discussing how skills and the power of AI are changing the nature of work. A skills-based approach can help connect talent to the right opportunities, personalize the experience, and provide more visibility into the workforce’s capabilities. Employers benefit from improved efficiency and stronger talent pools, while individuals benefit from greater opportunities to control their career paths. Skills provide a roadmap for the future and a bridge between talent acquisition and talent management. Aptitude Research found that companies that invest in skills development are:

● Twice as likely to improve retention

● Twenty-eight percent (28%) more likely to improve DEI initiatives

Skill-Based Talent Planning: One of the most exciting takeaways from the event was the announcement of Eightfold’s Skills-Based Talent Planning. This product was heavily influenced by customer input and direction and aimed to give companies the data and action they needed to plan. Many companies do not have visibility into talent, and workforce planning uses Excel spreadsheets once a year. As a result, decisions are made rapidly without any data or insights, often resulting in losing quality talent, layoffs, and missed opportunities. A skills-based approach to strategic workforce planning allows business leaders to understand how macro trends impact the needs of their organization. Eightfold feeds this insight into its Talent Acquisition, Talent Management, and Talent Flex solutions, allowing organizations to execute skills-based talent strategies at scale. Our latest study on strategic workforce planning found that although 85% of companies are investing the same or increasing their investment, only 14% take a strategic, long-term approach to their workforce planning initiatives. A skills-based approach is a game changer. It goes beyond providing insights and gives companies an action plan. Some of the benefits and differentiators include:

  • Scenario planning for the time required for skills and proficiency to develop in existing and emerging areas;
  • Redesign roles for the future and plan for how organizations should evolve over time;
  • Capture progress and fully execute on a coordinated talent plan by integrating with Eightfold Talent Acquisition, Career Hub, and the entire Talent Intelligence Platform.

Companies Need to Consider Providers with a Strong Commitment to Responsible AI: Companies invest in AI in talent acquisition and management, but not all AI providers are the same. Companies must consider ethical AI as they evaluate providers and understand if products operate transparently, are backed by explanations, describe the methodology, and frequently publish data. In addition, responsible AI builds confidence with employers and candidates who want to understand how their data is used. Scott Sumner with the Defense Innovation Unit under the Department of Defense (DoD) shared how responsible AI was an important consideration when evaluating Eightfold as the provider for its GigEagle program. GigEagle using Eightfold’s AI matching will increase DoD’s ability to effectively leverage its abundance of talent currently locked into supporting singular units. In addition, GigEagle will focus on staffing short-term “gig” project needs, ranging from four hours to several months, many of which can be staffed remotely.

Partnerships are Helping to Drive Change: Eightfold and its clients are not operating in a vacuum. They are part of a larger ecosystem that drives change and transformation in how companies recruit and retain talent. Partners that include Deloitte, EY, and Magnit are partnering with Eightfold to provide a skills strategy for clients to ensure they are changing their mindset and optimizing their technology investments.

It is an exciting time to be in HR Tech!

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Blog

Countdown to the HR Technology Conference: Skills-Based Hiring

It is hard to believe that the HR Technology Conference is only 8 weeks away. I love this conference and the opportunity to reconnect with friends and learn about new (and old) technology providers. I am thrilled to be presenting new research at the event and I will be posting a series of blogs leading up to September on TA tech trends.

This first post will focus on a topic that is gaining momentum in talent acquisition… skills-based hiring. Every provider seems to be using skills in their marketing messaging, but few providers have invested in a robust skills ontology and capabilities to improve both the employer and candidate experiences.

Skills are quickly becoming the currency for the future of work. A skills-based approach can help connect talent to the right opportunities, personalize the experience, and provide more visibility into the capabilities of the workforce. Employers benefit from improved efficiency and stronger talent pools, while individuals benefit from greater opportunities to control their career paths. Skills provide a roadmap for the future and a bridge between talent acquisition and talent management.

We published a study (in partnership with Beamery) and found that companies that invest in skills development are:

  • Twice as likely to improve retention
  • Thirty-four percent (34%) more likely to improve quality of hire
  • Twenty-eight percent (28%) more likely to improve DEI initiatives

Skills level the playing field for both internal and external talent. Evaluating skills means looking      beyond what is found on a resume or employee profile to get deeper insights about the individual. But, many companies are not always clear where to start with skills development. Lack of ownership and confusion around how technology fits in have added to this uncertainty. Talent marketplaces are gaining momentum as the vehicle to deliver a skills-based approach, yet not every company understands the impact of these solutions. For companies to compete for talent and provide fair and equitable experiences, skills must be part of the equation.

Here are some of the key findings from our research…

The Demand for Skills Is Being Driven From the Top: The focus on skills development is being driven by executives and CHROs. According to this study, 65% of CHROs say that upskilling and reskilling is the most important priority for 2022. CHROs are two times more likely to be involved in technology decisions that focus on skills than other areas of TA technology and 75% are interested in talent marketplaces to deliver on a skills strategy. CHROs are setting the course but oftentimes, talent acquisition and talent management must execute the strategy. Realistic expectations and clear communication will help these leaders achieve results and provide a more successful approach to skills.

Skills Unify a Talent Strategy: With equal pressure to recruit and retain, talent acquisition and talent management often still operate in silos with competing interests. A skills-based approach helps unify talent acquisition and talent management initiatives – providing consistency in data and experiences. Companies must empower their talent teams with a focus on skills. According to this study, companies with a skills-based approach see greater collaboration between talent acquisition and talent management.

Not All Providers Are Approaching Skills the Same Way: Technology allows companies to scale their approach to skills, provide opportunities and personalization to every individual, and leverage artificial intelligence (AI) and machine learning (ML) to draw deeper insights. Most importantly, it provides context to skills by inferring insights about the individual and employer. Although several technology solutions are aiming to address skills today, not every solution provides value. A successful skills-based approach requires a commitment from a solution provider to build a skills ontology, invest in talent intelligence, and apply AI inference so that skills are dynamic and personalized. With companies increasing their investment in skills, they must carefully consider providers that demonstrate expertise.

A Skills-Based Approach Benefits Employers and Individuals: Skills are not just a benefit to an organization. They give employees the resources they need to manage their careers and provide more opportunities for personalization and inclusivity. To truly understand an individual, however, companies should not stop with skills. They should consider the qualities that will make someone successful and happy in the work they are doing.

Skills Can Greatly Impact Internal Mobility Efforts:  The most obvious use case for a skills-based approach is internal mobility. Companies are looking for better ways to promote and develop their workforce while supporting talent acquisition initiatives. With 70% of companies increasing their investment in internal mobility efforts, many are just promoting jobs or leveraging internal career sites. Skills offer a more substantial approach to internal mobility by providing employers with a deeper understanding of their workforce and empowering individuals with the tools they need to be successful.

Providers to watch (in alphabetical order): Beamery, Boostrs, Eightfold, HiredScore, Oracle, TaTio, TechWolf, Workday