As the competition for skilled talent grows, more and more HR teams are using skill data to reshape their approach to conventional practices like hiring and workforce development.
Innovation doesn’t stop there, however–now, industry leaders at companies like IBM and Johnson & Johnson are leveraging skill data to drive measurable business outcomes across their organizations. In the process, they’re transforming everything from workforce planning to diversity, equity, and inclusion initiatives, creating programs that are strategic, scalable, and effective.
Curious to learn more? Here’s a closer look at how you can use skill data to:
1. Design Smart Compensation Packages
Modern HR organizations have moved beyond conventional compensation models. By analyzing skill data, companies like Siemens are identifying precise market rates for high-value skills and developing sophisticated compensation frameworks to win top talent. According to Michael Folawaczny, the company’s Global Head of HR Corporate Development, “Using a skill-based pay system leads to possibly fewer, and more highly paid, more productive, and smarter employees.”
2. Cut Time-to-hire with Precision Recruiting
Consider this: 69% of recruitment professionals now rate skill verification as a critical practice for making hiring decisions (LinkedIn Research). Forward-thinking HR teams are revolutionizing their recruitment strategy by implementing robust skill-based screening processes. Rather than relying solely on resumes, they’re using validated data to identify ideal candidates, significantly reducing both time-to-hire and the cost of mis-hires. In USA Today, former IBM CEO Ginni Ronetti highlighted their skill-based approach to recruitment, noting, “As many as one-third of [our] employees don’t have a four-year degree. What matters most is that these employees – with jobs such as cloud computing technicians and service delivery specialists – have relevant skills.”
3. Supercharge Employee Learning & Development
The World Economic Forum predicts that 44% of workers will need to learn new core skills to succeed in their roles between 2023 and 2028—up nine percentage points from its last five-year projection. Progressive HR teams are addressing this challenge by implementing sophisticated learning programs based on skill insights. By matching employees with targeted development opportunities, they’re driving both engagement and measurable performance improvements. Novartis is no exception–their employee mentorship program relies on a skill database to match internal mentors with mentees across roles and countries.
4. Future-Proof Your Workforce with Reskilling
Leading organizations like Johnson & Johnson are taking a proactive stance on workforce development. Through comprehensive skill assessments and analyses, they’re identifying emerging capability requirements well before they become critical gaps, creating new learning opportunities for employees in the process. It’s nothing short of a paradigm shift for ambitious employees. According to Christina Norris-Watts, Head of Assessment at People Practice at Johnson and Johnson, “Our hope is we’re thinking less about the job title you want next […] and instead, more about the skills you want to grow.”
5. Build Data-Driven Teams that Deliver
High-performing organizations are revolutionizing team formation through skill analytics. By mapping complementary capabilities across team members and identifying critical skill gaps prior to project initiation, they’re optimizing team composition for success. This analytical approach to team building is driving results at global real estate firm Cushman & Wakefield, who recently used skill data to analyze new team configurations and recruit internally “from an underutilized talent pool.”
6. Master Advanced Workforce Planning
Contemporary workforce planning has evolved into a data-driven discipline. HR teams are now utilizing sophisticated skill analytics to forecast talent needs, identify roles at risk of skill obsolescence, and develop targeted talent pipelines. According to Anish Singh, Head of HR for Unilever in Australia and New Zealand, the company’s strategic plan is to “reskill or upskill our employees with future-fit skills by 2025; pioneer new models to provide our employees with flexible employment options by 2030; and help equip 10 million young people with essential skills by 2030.” Teams like Singh’s are making informed decisions about workforce development and talent acquisition, ensuring alignment with long-term business objectives.
7. Drive Evidence-Based DEI Initiatives
Progressive organizations are enhancing their diversity, equity, and inclusion strategies with skill data. Marissa Morrison, VP of People at ZipRecruiter, explains their approach: “By focusing on the capabilities and competencies that candidates bring to the table, we not only ensure an organization’s ability to adapt and thrive, but also pave the way for a more equitable and inclusive workforce.” By identifying skill-based barriers to advancement and implementing targeted hiring programs, they’re creating measurable progress in DEI objectives. This data-driven approach is transforming DEI from an aspiration into a scalable business initiative.
8. Retain Top Talent with Clear Growth Paths
Research consistently shows that career stagnation drives talent attrition. Leading HR teams are leveraging skill data to create clear progression pathways and identify high-potential employees based on capabilities rather than tenure. By implementing data-driven succession planning, organizations are significantly improving retention rates while ensuring leadership continuity. In fact, Trane reported a 2x increase in employee retention after implementing an internal skill development and career planning system for employees.
9. Analyze Markets for Future-Ready Workforce Planning
With 89% of talent leaders emphasizing the importance of skill data for future planning (LinkedIn), organizations are prioritizing workforce agility. By monitoring emerging skill trends and implementing proactive development programs, they’re building adaptable teams capable of responding to market changes. This focus on agility is becoming a critical differentiator in competitive markets, which explains Microsoft’s recent partnership with General Assembly to focus on upskilling in AI and cloud-related subjects for over 15,000 employees.
10. Create a Culture of Continuous Learning
Forward-thinking HR leaders are transforming their approach to workplace culture by embracing continuous learning. Major players like Atlassian, Google, and LinkedIn all encourage employees to dedicate between 5 and 20% of their time to pursuing personal learning and development goals or side projects. As a result, they’ve been able to ship more features and have seen improvements in employee morale. By aligning workforce development initiatives with cultural objectives, they’re making an impact.
The Path Forward
As industry leaders have shown, skill data isn’t just another HR asset–it’s your secret weapon for building and retaining high-performing teams.
Ready to transform your HR strategy with advanced skill analytics?
