Businesses struggling to find the right talent may need to reconsider their approach rather than blaming market conditions. As companies transition towards skills-based workforce management, many face internal resistance that slows progress.
New research from TALiNT Partners highlights that 33% of organisations cite internal politics as a major challenge, while 38% point to cultural resistance as a key barrier to implementing skills-based practices.
The move towards Skills-Based Organisations (SBOs) is more than just a change in hiring methods. It requires a fundamental shift in mindset, moving away from traditional talent management strategies that rely on static job descriptions and degree-based hiring. However, entrenched habits and misalignment between departments are preventing progress.
Key Challenges in Adopting a Skills-Based Approach
One of the primary obstacles is internal politics and siloed thinking. Many organisations operate with disconnected HR, leadership, and business teams, making it difficult to agree on a unified skills strategy. Cultural resistance is another major challenge, as employees and managers are often hesitant to adopt skills-first hiring and development models due to a lack of awareness or concerns about role changes.
Defining and measuring skills is another issue, with over 50% of organisations struggling to establish clear skill definitions, leading to confusion in workforce planning. Additionally, leadership buy-in remains low, with only 15% of non-HR leaders fully understanding the business benefits of a skills-based approach, which slows adoption at the highest levels.
Opportunities for Businesses Adopting a Skills-First Approach
Despite these barriers, companies that embrace a skills-first model often experience higher retention, greater agility, and improved productivity. Organisations such as GSK and Bakkavor have started simplifying their skills frameworks, integrating learning platforms, and shifting leadership mindsets to focus on skills as a driver of business success.
Ken Brotherston, Founder and Chair of TALiNT Partners, emphasised the importance of overcoming resistance, saying, “Overcoming cultural resistance is critical for any business looking to build a more agile, future-ready workforce. The key is not to impose change but to build trust, ensuring employees and managers see the benefits of a skills-based approach.”
Strategies for Overcoming Resistance
To navigate these challenges, organisations must start with leadership alignment. Educating senior executives on how skills-based strategies drive productivity, cost-efficiency, and workforce agility is essential. Demonstrating small successes, such as mapping current employee skills and identifying internal mobility opportunities, can help make change tangible.
Providing clear upskilling pathways and internal mobility frameworks ensures that employees see career progression opportunities within the organisation. Additionally, investing in training for managers equips them with the right tools to assess and nurture skills-based talent strategies.
