RedThread Research has released its report, The Skills Odyssey: How to Design Your Strategy, which provides organizations with a practical roadmap for developing and implementing an effective skills strategy. The report examines the growing importance of skills in talent management and presents a strategic framework that enables organizations to integrate skills data and decision-making into their talent ecosystem, rather than focusing solely on building a "skills-based organization”.
Co-authored by RedThread Research co-founders and principal analysts Stacia Garr and Dani Johnson, the report emphasizes that while skills efforts can be challenging and disruptive, they are essential for building resilience, workforce mobility, and organizational agility.
The report builds on years of RedThread research and is based on the lived experience of many leaders working on skills strategy in real-world contexts. It includes real-world insights via case studies from companies that include: GSK, Hewlett Packard, Microsoft, IKEA franchise holding company INGKA Holding B.V, and software engineering and consulting firm EPAM.
"Skills have become central to conversations about the future of work, but many organizations still struggle with implementing a successful strategy," said report co-author Stacia Garr. "Our report offers a practical framework based on real-world stories, that addresses the messy realities of skills efforts and provides insights to help leaders think through the scope, culture, data, technology, and partnerships they need to make these efforts successful."
Focusing on integrating skills data into the talent ecosystem is worth the effort, finds the study. RedThread Research has found that employees in organizations with a clear skills strategy were:
3.4x more likely to give a positive Net Promoter Score
2x more likely to report their company as innovative
1.7x more likely to report their company met business goals
Key Study Insights
A Practical Framework for Skills Strategy: The report outlines six essential elements for a skills strategy—scope and purpose, partnership and governance, culture, architecture, data, and technology. These areas help organizations think holistically and adaptively when developing a skills-focused approach.
The Benefits and Challenges of a Skills Approach: While 94% of RedThread’s survey respondents are thinking about how to integrate skills into their talent management and development, implementing that skills-based approach presents challenges such as aligning cross-functional teams, integrating data from multiple sources, and encouraging cultural shifts. The report also highlights how organizations that establish a clear skills strategy see higher employee satisfaction, increased innovation, and better business outcomes.
Leveraging Skills Data as Augmentation: The report emphasizes that skills data is an augmentation of other business data and should be used to inform strategic decisions across the organization. Rather than waiting for perfect data, leaders are encouraged to use available information to make "directionally correct" decisions and incorporate skills data and decision-making into the organization.
The Role of Technology in Skills Efforts: Technology is crucial for identifying, managing, and analyzing skills data. The report introduces a Skills Tech Framework to help organizations determine the right tools for their skills initiatives. It also discusses the rapid evolution of skills technology, driven by advancements in AI, and the importance of integrating tech solutions into a broader strategy.
Insights into Building a Skills Culture: Successful skills efforts require a cultural shift within the organization. The report discusses how leaders can leverage existing cultural strengths, address potential barriers, build a coalition, and foster a mindset that values continuous learning and skills development.
"Organizations can't afford to wait for ideal conditions before beginning their skills journey," said report co-author Dani Johnson. "The report emphasizes starting where you are and being prepared to adapt along the way. By taking a strategic and flexible approach, companies can lay the groundwork for more effective talent management and organizational agility."
The report is designed to help leaders get started quickly, but if additional help is needed, RedThread Research also offers a workshop based on this research to guide organizations through building their own skills strategy, said Garr.
A lighter-weight version of The Skills Odyssey report, known as Boiling the Ocean: Navigating a Skills Strategy, will be made available to members of the Transform community, while the full report is exclusively available to RedThread Research members.
The work behind The Skills Odyssey was made possible by RedThread’s broader research membership, a community made up of global HR, learning, talent, and people analytics leaders. It is part of an ongoing body of RedThread Research publications, including Skills vs. Competencies, Skills Verification, and Skills Tech research — sponsored by RedThread Membership and its Tech Consortium.
RedThread Research community members enjoy exclusive access to behind-the-scenes content, detailed transcripts, and in-depth reports that shape HR and talent strategies. Join the RedThread Research community to become part of the movement driving better workforce insights.
Many of the insights, stories, and quotes featured in The Skills Odyssey report grew from conversations on RedThread’s Workplace Stories podcast. Over the past three years, RedThread has hosted more than 80 conversations with leaders and thinkers on critical topics like skills, talent, and the future of work. The podcast is freely available on all major platforms, with members enjoying exclusive access to bonus content and transcripts.
For more information about The Skills Odyssey report or to learn about the RedThread Research Tech Consortium, visit www.redthreadresearch.com or contact hello@redthreadresearch.com.
