Are you feeling the shift in your organization?

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I’m feeling it as I work and speak with leaders at organizations all over.  But what is it?

You are likely feeling a shift or change too. It’s the need to build internal talent capabilities through upskilling and reskilling.

The good news is that more companies are investing in reskilling their talent, the bad news is that too many companies are restructuring employees out of the organization if they do not have the skills needed for the future.

Layoffs are increasingly influenced by the alignment of employees' skills with organizational needs. Workers in high-demand, future-oriented skill clusters are more likely to be retained, while those in roles with declining demand or that can be automated are at greater risk. Many companies are shifting toward a skills-based approach to workforce management, aiming to reduce reliance on layoffs by building versatile, future-ready teams.

Here’s what’s happening. Organizations face tighter budgets, reduced headcounts, and increased scrutiny on spending. In response, talent leaders are tasked with maximizing efficiency and value, leading to a focus on building internal talent capabilities as a strategic alternative to external hiring.

Randstad recently published their Global In-Demand Skills Research, and here are a few key takeaways around how organizations are building internal talent capabilities:

1. Upskilling and Reskilling Programs: Employers are heavily investing in skilling initiatives to equip employees with high-demand skills like AI, data analytics, and cloud computing. Talent development strategies focus on preparing employees for future challenges by aligning learning initiatives with emerging business needs. For example, AI training is becoming a key driver of talent mobility, with professionals trained in AI experiencing higher career opportunities and flexibility.

2. Internal Mobility: Internal mobility strategies are gaining traction to optimize existing talent pools. By moving employees across departments or roles, organizations reduce the need for external hiring. Internal recruitment is seen as a cost-effective way to meet skill gaps while enhancing employee satisfaction and retention.

3. Fostering a Culture of Continuous Learning: Organizations are encouraging a learning mindset by integrating training into daily workflows and incentivizing skill acquisition. Many are creating environments where innovation and knowledge-sharing are rewarded.

4. Focus on Leadership Development: Investing in leadership training is critical to ensuring that leaders can guide teams through uncertainty and change. Programs often focus on developing inherent skills such as ethical judgment, adaptability, and empathy, which are increasingly important for leadership roles.

5. Cross-training Opportunities: Cross-functional training enables employees to acquire diverse skills and fill multiple roles, increasing organizational agility. This approach also prepares employees to adapt to new technologies and workflows seamlessly.

Building internal talent capabilities represents a shift from reactive hiring to proactive talent management, ensuring companies remain resilient and competitive.

Reach out if you’d like more examples or deeper insights into any of these strategies!

If we are meeting for the first time, welcome! I am a certified leadership coach, Hogan and MBTI practitioner, and Talent Management Partner to organizations who need help with wildly practical solutions. 

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