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1、2023/2024 Skills Snapshot Survey Report12023/2024 skills snapshot survey report Skills-powered practices,future pay and effectiveness2023/2024 Skills Snapshot Survey Report2Executive SummaryThe 2023 Skills Snapshot Survey,conducted by Mercer,highlights the benefits of skills-based talent and reward

2、practices,including improved employee retention,enhanced workforce agility and greater flexibility for evolving market demands.It provides recommendations for implementing skills-based talent approaches,such as building a skills foundation,aligning key performance indicators and defining success met

3、rics.We also share the challenges,including data silos,differing skill lists and classifications across different groups.The report concludes with a call to action for companies to move toward becoming a skills-powered organization and provides steps to get started.Contents3 On the HR agenda:Progres

4、sing talent strategies4 Bridging the skills gap6 Building a skills foundation 7 Unraveling the skills mapping dilemma 8 Determining the frequency of skill assessment9 Embracing transparency 10 Navigatingskillproficiencydispersions11 Skills-based rewards:a nascent trend with promise 12 Overcoming bar

5、riers to progress 13 Make the move toward a skills-based talent strategy 14 Contributors2023/2024 Skills Snapshot Survey Report3On the HR agenda:Progressing talent strategies As companies evolve their talent strategies,skills have become a common theme.The quest to identify,use,validate,develop and

6、reward skills as part of core people practices is an established trend that is gaining momentum.Mercers fourth annual Skills Snapshot Survey reveals encouraging progress,with many organizations embracing platforms and data to action skills-based strategies.Drawing on responses from more than 1,400 t

7、alent,rewards and HR team leaders from more than 60 countries,our 2023 survey highlights a positive shift toward skills-based transformation.In fact,roughly two out of three employers now report integrating skills in career development,talent acquisition and performance management.To support increas

8、ed adoption of skills-based practices,45%said they have a form of skills library they use within their organization,and nearly two-thirds of respondents(64%)monitor the market demand and availability of skills,either formally or informally.Further,14%have already established formal processes for tra

9、cking skill trends,such as leveraging technology and data to make strategic decisions up from the 8%reported last year,indicating tangible progress in this transformative journey.2023/2024 Skills Snapshot Survey Report4Bridging the skills gapLeaders feel most at ease identifying and applying skills

10、within their specific jobs or departments rather than comprehending the skill landscape across the entire company.For instance,72%of the respondents are highly confident in recognizing the critical skills for their respective roles,and 63%feel the same about their departments.This confidence diminis

11、hes to just 35%when considering the company as a whole.To identify and leverage skills effectively,organizations must strive to get as close as possible to the people performing the jobs,as this allows for a deeper understanding of the skills used in practice and paves the way for more accurate vali

12、dation.Currently,most companies are focused on building a foundational skills taxonomy,a cornerstone of constructing comprehensive career frameworks.Mercers 2023 Global Talent Trends indicates that establishing skills-based practices is a top-five priority for HR leaders.Skills are being applied to

13、the following talent management practices:Career development(72%)Talent acquisition(69%)Performance management(64%)Learning(59%)Career pathing(50%)Rewards(49%)Succession management(48%)Workforce planning(42%)Projects and gigs(23%)Work design(22%)Learn about Arcadiss skills journey and its skills-pow

14、ered organization ambition on its website.Move from jobs to skills with skills-based talent management()Making work work,episode 5()Amy Baxendale,Global Capability and Workforce Readiness Director at Arcadis,cites transforming access for our people to enable personalized learning,growth opportunitie

15、s and diverse career paths as the primary reasons for advancing skills-based practices at Arcadis.2023/2024 Skills Snapshot Survey Report5The limited but growing use of skills in workforce planning,projects and gigs;and work design suggests companies start with use cases that are simpler and less di

16、sruptive.For instance,increasing projects and gigs requires changing how talent flows to work;work design changes what,whom and how work is performed;and workforce planning has far-reaching downstream impacts on talent assessment,development and flexible talent pools.Accordingly,skills-based practic

17、es related to employee attraction,development and retention are already the norm.Discover Mercers Work Design Explore now Benefits of skills-based practicesAttract and retain critical skillsWorkforce agility/-flexibilityOtherWorkforce productivityEmployee development/opportunityCareer/learning cultu

18、re2023/2024 Skills Snapshot Survey Report6Building a skills foundationAt the heart of any successful skills-based transformation lies a simple list of skills,which becomes a taxonomy(i.e.,a library or catalog)when properly organized.We recommend that organizations apply a skills taxonomy to jobs to

19、help managers and employees better understand the skills expected in a given role.This serves as the cornerstone for career-pathing,upskilling and reskilling initiatives.Our research indicates that 45%of companies have a skills taxonomy in place that covers a portion or all of their organization.Of

20、those,two in three use a single skills catalog for all groups and levels,whereas one in three uses multiple catalogs for different groups and levels or within other systems.Data silos and the existence of differing skill lists and classifications across different groups can compound the challenge of

21、 building a skills foundation.These discrepancies can hinder upskilling and reskilling initiatives that support lateral and diagonal movements within the organization,causing talent blockages for individuals holding adjacent skills.To combat these challenges,organizations should promote consistency

22、in skills framework and governance so that all stakeholders are using the same language.Lay the groundwork for skills-based decisions A career framework defines an organizations job architecture mapped to a skills taxonomy for workforce planning,capability development,performance management and cost

23、 optimization.It delivers the information and insights needed for effective workforce analytics;selection and retention;succession management;rewards;and career management and development.Discover Mercers Skills Library.Explore now2023/2024 Skills Snapshot Survey Report7Unraveling the skills mapping

24、 dilemmaCompanies have made notable strides in identifying the skills required for specific jobs,with 47%of respondents undertaking this crucial task.However,less progress has been made when mapping those skills to individual employees(28%).Interestingly,among those who have successfully mapped skil

25、ls to jobs,58%have completed mapping for all job families and job levels.Twenty-nine percent have prioritized technical functions(for example,IT,data science,engineering)for skill mapping over other functions,suggesting prioritization of critical roles and specialized skill sets within a company.Mos

26、t companies(63%)have not yet established an ideal number of skills for each job.This reflects a lack of maturity in forming a comprehensive perspective on what makes up a desirable,manageable and meaningful number of skills per job.Additionally,70%of companies have not identified the ideal number of

27、 skills for individual employees.Our research suggests that companies are satisfied with a slightly lower number of skills being tied to individual employees(the reality)rather than benchmarking to the job or role(the ideal)that they perform.Because there are thousands of skills and new ones are bei

28、ng developed every day,focusing on a critical few has enabled leading companies to begin the transformation without being crippled by complexity.For the companies that have standardized the ideal number of skills,15%believe that 15 skills per job(or 11%for the employee level)is sufficient,and 15%sai

29、d 610 skills per job(or 13%per employee level)is right for them.In our experience,the average number of skills for a job typically hovers at about 20,and structuring according to a metric such as frequency rank or importance helps prioritize and organize.The appropriate number of skills varies from

30、one organization to another and depends on unique context and requirements of each.Job-based mapping(72%)and manager identification(65%)are the top methods used to map skills to individuals.Only 8%of respondents are using skills inferred through artificial intelligence(AI).Continuous skills data ref

31、resh is a minority practice,which implies that the technology-enabled solutions equipped to enable real-time skill updates are not yet widely adopted.The most up-to-date data on skills at the employee level exists in HRM systems(46%)and rsums(24%),although 22%said they do not have a formal method fo

32、r capturing skills data.What to focus on Companies that are leading the transformation to a skills-focused talent strategy address the following questions:1.What skills do we need,and how will we incorporate a skills taxonomy into our job architecture?2.What skill level do we expect for each role?3.

33、How do we assess the skills that will drive our business forward?4.How will we reward for top skills?5.How will we operationalize our skill-based strategy?2023/2024 Skills Snapshot Survey Report8Determining the frequency of skill assessmentAccording to our survey,opinions on skill assessment frequen

34、cy vary,with 33%of respondents favoring an annual assessment,21%believing continuous assessment is needed,and 10%suggesting biannual assessments.Twelve percent dont perform any assessment at all.Most companies that do assess use an employee self-assessment supported by manager validation(69%).These

35、findings are consistent with prior years.Leading employers are utilizing a segmented assessment strategy that prioritizes different assessment methods based on multiple factors,including the use case for skills(will it directly impact selection,development,rewards,etc.);type and criticality of skill

36、;and the maturity of skills-based practice.Assessment vendors are increasingly incorporating the latest technology to support a positive employee and candidate experience through simplicity and accessibility.2023/2024 Skills Snapshot Survey Report9Embracing transparencyTransparency of skills-based p

37、ractices plays a vital role in shaping the success of HR processes and empowering employees to propel their careers.Sixty percent of employee skill profiles are visible only to HR,leadership and line managers,although respondents share that 27%make their employee skills profile visible to all.Only 1

38、3%make their employee skills profile visible only to employees.This indicates that the current primary focus of skills profiles is to drive internal HR functions.We expect transparency to expand as the market for skills-based practices matures.Over time,companies will do well to expand this line of

39、sight to enable better career pathing,upskilling and reskilling and to enhance visibility of each employees unique skills across the organization and to promote inward mobility.2023/2024 Skills Snapshot Survey Report10Navigating skill proficiency dispersionsProficiency frameworks can be an important

40、 part of any skills-based approach because they enable differentiation between various levels of competency or expertise with respect to any given skill.However,half of companies currently do not define and manage skill proficiency levels,and only 21%manage them centrally.Compounding the challenge,5

41、0%of companies do not apply a formalized proficiency scale across all skills,making it difficult to compare skills across departments and employees.For the companies with established proficiency levels,most use a scale of three or five levels.In our experience,proficiency frameworks are unique to ea

42、ch organization,and there is no market-predominant structure.When organizations do use proficiencies,they are applied to a broad range of talent practices.Top five talent practices using proficiency scales 1.Career development(73%)2.Talent acquisition(68%)3.Performance management(68%)4.Succession ma

43、nagement(53%)5.Career pathing(52%)Discover Mercers Skills Library Mercer Skills Library includes recommended proficiency ranges based on a five-level scale.Explore now2023/2024 Skills Snapshot Survey Report11Skills-based rewards:a nascent trend with promise Although skill-based approaches are gainin

44、g traction,skills-based rewards programs remain a minority practice,with 83%of companies yet to implement them.That said,our respondents are clearly optimistic about opportunities in this area,stating that their objectives for linking rewards to skills are to:1.Attract and retain premium skills(84%)

45、2.Incentivize skill development(65%)3.Incentivize career progression(54%)4.Develop a fairer approach to pay(44%)5.Develop a better investment model(24%)Explore Skills Pricer Determine which skills are most valuable to your organization.Explore nowAnshul Sheopuri,Vice President and Chief Technology O

46、fficer,Data and AI at IBM explains why the opportunity to link pay to skills is so great:For any company of our size,compensation spend is such a huge portion of our expense that even if we spend our money 1%better in terms of efficiency,as well as improved outcomes in terms of retention of key skil

47、ls,the payback is huge.To learn more about how IBM incorporates skills into its rewards program,view an interview series with Mercer at Skills Edge interview series.Technical or hard skills are most commonly linked to rewards(74%),followed by qualifications and certifications(47%).The impact of skil

48、ls on pay is evident in yearly salary increases(41%),new hire salaries(34%)and retention bonuses(33%),compared with annual bonuses(31%)and sign on bonuses(21%).Skills are being used as an input into year-end merit processes,but they are not yet replacing traditional practices.Thirty-eight percent of

49、 respondents said that the presence of critical skills would give access to higher pay levels;however,performance is still the primary driver of success.A further 27%said the salary review would be driven equally by both skill-based and traditional inputs.We anticipate that skills will be increasing

50、ly emphasized in the year-end merit process over time.Still,it is not likely to fully replace well-established inputs such as base pay competitiveness,career potential and individual employee performance in the near-term.Reinvent rewards with pay for skills Discover Mercers Skills Pay Planner.Explor

51、e now2023/2024 Skills Snapshot Survey Report12Overcoming barriers to progressWhen asked what is getting in the way of moving to a stronger skills orientation of their talent strategy,respondents shared that HR capability or capacity was the top barrier(41%),followed by too much change(36%).More than

52、 one in five respondents(22%)said they have not discussed a skills program yet,suggesting that they have not reached a level of strategy or systems maturity with skills to have made significant inroads.Most companies(64%)are not using technology to enable skills identification and mapping,similar to

53、 the 2022 findings.Fewer than one in five(19%)are using technology provided by a vendor.2023/2024 Skills Snapshot Survey Report13Make the move toward a skills-based talent strategyTo get started on a skills-first journey without becoming too overwhelmed,Mercer recommends the following five steps:1.B

54、uild the business case Listen to the needs of the business and identify a problem that can be addressed by skills-based practices.Identify the benefits and quantify the potential impact to garner support.Prioritize opportunities where near-term ROI can be demonstrated.2.Align the key performance ind

55、icators(KPIs)Agree on what success looks like and align on KPIs that will measure the progress toward your objectives.Prioritize competing objectives in order to invest time and resources accordingly.Develop a clear roadmap of the steps required to achieve the prioritized objectives.3.Design with en

56、d in mindIdentify the steps required to deliver.For most,this plan includes mapping skills to jobs as a catalyst to link skills to individuals and people programs.Consider the desired employee experience and how existing and emerging technologies can deliver a premium digital experience in the near-

57、term or over time.Anticipate the need to pilot the work in a specific area or department with the goal of expanding and building on initial successes.4.Prioritize change management and communications From the beginning,invest heavily in stakeholder management,engagement and communication ensuring em

58、ployees and leaders and stakeholders are well informed about the purpose,benefits and expected outcomes.Identify short and long-term wins to maintain enthusiasm and momentum.5.Drive and sustainBuilding on early pilots or minimum viable products(MVPs),commit to continuous improvement.Establish govern

59、ance,methods,and tools to reach evergreen status with minimal human burden.No two journeys are the same;each organization embarks on their journey in their own unique way there is no one prescribed approach.The key is to begin by addressing the pivotal pain points that are crucial for your organizat

60、ion.Solving for the challenges your business has today is the right place for you to start.Amy BaxendaleGlobal Capability and Workforce Readiness Director,Arcadis2023/2024 Skills Snapshot Survey Report14ContributorsBrian Fisher Career and Skills Frameworks Solution Leader Melba Gant Skills-Edge Prod

61、uct Manager Vasilis HatzopoulosSkills-Edge Lead Data Scientist Katie Jenkins Skills-Edge Product Director Heather Ryan Global Product Leader Peter Stevenson Skills-Edge Go-to-Market Leader 6013797A-CR 2023 Mercer LLC.All rights reserved.At Mercer,we believe in building better futures.Together,were r

62、edefining the world of work,reshaping retirement and investment outcomes,and unlocking real health and well-being.We do this by meeting the needs of today and tomorrow.By understanding the data and applying it with a human touch.And by turning ideas into action to spark positive change.For over 75 years,weve been providing trusted advice and solutions to build healthier and more sustainable futures for our clients,colleagues and communities.Welcome to a world where economics and empathy make a difference in peoples