From philosophy to contemporary research: People flourish in skills-based organizations 

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In our quest to understand human flourishing and organizational success, we often overlook a fundamental truth: skills development isn't merely about acquiring capabilities — it's about creating the conditions for meaningful existence. Drawing on both philosophical insights and contemporary organizational research, we can see how skill development shapes our experience of the world and enables genuine impact.

The phenomenology of skill

Martin Heidegger's philosophical insights, particularly as interpreted by Hubert Dreyfus, offer a profound window into how skills shape our experience of reality. When we first encounter a tool or practice, it stands before us as something alien and explicit — what Heidegger calls "present-at-hand." Think of a novice driver constantly thinking about every movement or a beginning pianist painstakingly placing each finger. But as we develop mastery, something remarkable happens. The tool or skill becomes "ready-to-hand" — it withdraws from our explicit awareness and becomes an extension of ourselves. Experienced drivers don't think about driving; they simply navigate through traffic as naturally as walking. The skilled pianist doesn't consciously place fingers; they express music directly through their embodied understanding.

The organizational revolution: Skills at the center

This philosophical understanding aligns powerfully with the transformation that Ravin Jesuthasan and other Mercer experts have identified in modern organizations. Jesuthasan argues we're witnessing a fundamental shift from traditional job-based models to skills-based organizations. This isn't just a change in HR practices — it's a complete reimagining of how work creates value and meaning.

Key aspects of this transformation include:

  1. Skills as currency
    Rather than static job descriptions, organizations are beginning to view skills as the fundamental unit of work. This creates more fluid, adaptive organizations where talent can flow to where it creates the most value.
  2. Work decomposition
    Jesuthasan emphasizes that organizations are breaking down traditional jobs into their component skills and tasks, allowing for more flexible and meaningful work arrangements.
  3. Skills marketplace
    Progressive organizations are creating internal skills marketplaces where employees can apply their capabilities to various projects and challenges, increasing both organizational agility and individual meaning.

From philosophy to practice

The convergence of philosophical insight and organizational practice reveals key mechanisms through which skills create meaning. As we develop skills, we experience ourselves as capable actors rather than helpless observers. In a modern, skills-based organization, this means being able to contribute across traditional role boundaries.

Skills enable us to contribute meaningfully to our organizations and society. Mercer's research shows, organizations that enable employees to apply their skills flexibly see higher engagement and impact. 

The skills-based approach that Jesuthasan advocates creates natural pathways for development. Rather than waiting for promotional opportunities, employees can continuously expand their skill sets and increase their impact.

The future of work and meaning

Mercer's research into skills-based organizations reveals several crucial insights about the future of meaningful work, including the democratization of opportunities, adaptation of capabilities and enhanced innovation.

When organizations focus on skills rather than traditional credentials or career paths, they create more inclusive environments where talent can emerge from anywhere. There is no restriction on switching departments or roles because the experience you have gained in skills is valued more than years spent in roles or jobs.

Skills-based organizations are better equipped to handle change. As Jesuthasan notes, they can rapidly reconfigure their capabilities to meet new challenges because the workforce already has the skills you seek rather than job titles, as was previously the case. When people can apply their skills across traditional boundaries, organizations see increased innovation and problem-solving capability

Practical implications

Having said that, based on Mercer’s Global Talent Trends 2025 pulse survey, only 35% of respondents in Asia (35% globally) say they have started on becoming a skills-powered organization through developing skills.

For organizations seeking to create more meaningful work environments, this understanding suggests several key priorities including creating systems to make skills visible and accessible across the organization, fostering environments where skill development is continuous and celebrated as well as enabling people to apply their skills where they can create the most value and meaning.

These elements can be created within your organization as you shift towards becoming skills-based but they must be embraced by leadership and clearly communicated to your workforce if they are to flourish and have the maximum benefit. 

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Looking forward

As we navigate an increasingly complex world, this integration of philosophical understanding and organizational practice becomes crucial. The skills-based organization that Mercer envisions isn't just more efficient — it's more human. It creates conditions where people can develop and apply their capabilities in ways that generate genuine meaning and impact.

The future of work isn't just about new technologies or business models — it's about creating environments where human skills can flourish and create value in ever more meaningful ways. As organizations continue to evolve toward skills-based models, they're not just changing how work gets done — they're creating new possibilities for human flourishing and meaningful contribution.

About the author(s)
Lewis Garrad

Partner, Asia Career Practice Leader

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