Strategic Shift: Skills-Powered Organizations in the Age of AI 

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Today’s workforce challenges 

As technology advances, organizations must adapt to new work options like GenAI, machine learning and automation. To succeed, companies need the knowledge and skills to strategically deploy and effectively use these technologies, while also understanding their impact on human work.

Benefits of a skills-powered approach

When implemented correctly, a skills-based approach offers a wealth of strategic and economic benefits.
  • For employers
    • Stronger recruiting, hiring, and retention capabilities
    • Increased workforce productivity and agility
    • More effective and efficient talent development and deployment
    • Optimization of overall labor costs
  • For employees
    • Greater transparency around career progression requirements
    • Expanded, more democratic access to career 
    • Improved access to training for developing marketable skills
    • Increased workforce engagement
By making skills the backbone of their talent practices, organizations can better allocate people to projects, help employees explore different career paths, and gain the flexibility to allocate their capital more effectively as their needs change.
Bradford Bell

Professor of Strategic Human Resources, Cornell University

Strategic Shift: Skills-Powered Organizations in the Age of AI

Six in 10 workers require additional training before 2027. Find out how organizations can bridge skills gaps through data-driven strategies, buy-in, communication, goals and training.
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Checklist: Building a skills-powered organization 

✓ Create a framework

✓ Decide on the technology

✓ Develop a skills taxonomy

✓ Emphasize upskilling and reskilling

✓ Identify key outcomes and desired experiences

✓ Develop a change management plan

✓ Start small

✓ Document your progress

✓ Keep expanding your efforts

✓ Integrate it into the business

Mercer is proud to sponsor MIT SMR Connections for this skills strategy guide.
About the author(s)
Ravin Jesuthasan

is Senior Partner, Global Transformation Services Leader at Mercer

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Find out how organizations can create both the means and the enthusiasm to propel them to the skills-powered transformation they need by implementing a data-driven strategy, working to gain buy-in, establishing honest two-way communication, setting small-scale achievable goals, and providing useful training.
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