The importance of skills management in companies is more important than ever. Companies spend more than $3 trillion annually on training and development, yet they don’t know what skills their employees actually need to do their jobs. This is not only inefficient, but it’s also wasteful for companies to spend money on training employees that they will either lose or let go due to a lack of skills.
Skills management software has the potential to make the skills of every employee in an organization visible, transparent, and actionable. Businesses can use this visibility to identify gaps in their workforce and fill them in a cost-effective manner.
Skills management software helps organizations identify and track the skills of employees. It’s also known as competency management software. It helps leaders analyze the capabilities of teams and map skills from a centralized library to individual employees and job profiles.
Skills management software typically integrates with core HR software, learning management systems (LMSs), and performance management software. It enables senior leadership to identify employee skill gaps, search for employees with specific skillsets, and generate reports about skills gaps and competencies.
Skills management software helps businesses make smarter decisions about who to hire, who to mentor, and which employees can be promoted. It also allows organizations to efficiently address employee skill gaps that arise during the course of the business cycle.
Skills management software benefits the entire business, including HR, training and development, employee success, payroll, and human capital management. Skills management software typically comes with a library of standard competencies and skills that can be mapped to positions in a company.
Skills management software also helps employers find more ways to improve retention within the company. It can help them determine which skills are relevant for current job profiles and estimate the return on investment of training.
Skills management software typically includes different modules. For example, it may have a collaboration platform for employees to share their skillsets with their managers or peers. This way, they can make sure their skills are up-to-date and relevant for today’s workforce.
Skills management software also integrates with learning management systems, enabling employees to take online courses or attend in-person training sessions to learn new skills and keep their competencies up-to-date.
Skills management software is also commonly used to track and manage employee performance and coach employees on how they can improve their performance. It can help managers watch the performance of individual employees and give them feedback.
The following are key benefits of skills management software:
The profile of each employee is compared to the requirements of their job. The result is a list of skills that are required for them to succeed in their jobs. This helps managers identify gaps and take action accordingly.
Employees can identify areas they may need to improve upon and get feedback from their managers. HR departments can also plan skill development programs through collaboration with training teams to ensure employees have the right capabilities to do their jobs.
Skills management software helps businesses fix skill gaps in an efficient manner by targeting training to the right employees, increasing return on investment.
Skills tracking can help businesses identify ways to improve employee performance and get better results for the same investment. It helps managers track performance metrics and highlight areas for growth, giving them visibility into their team’s overall performance.
HR professionals can use the skills of candidates to screen job candidates and match them with the right position in the organization and ultimately streamline the recruitment process.
Skills management software has the potential to help companies identify which employees can take on new roles in the future based on their current skills. HR and management teams can use this information to develop a succession plan in case an organization needs to replace employees in the future.
Skills management software helps companies find and address employee skill gaps and keep employees in their roles. HR teams can use this insight to help them identify which employees are most likely to leave the company, and how to retain them.
Skills management software provides employers with a way to match skills gaps to specific positions in their organization, particularly when it comes to identifying trained or talented candidates that can fill positions in the future.
Using more precise skill mapping, HR professionals can more effectively design performance-based training for their employees. Employees can use skills management software to develop new skills on the job while continuing to do their day-to-day work.
The following are some of the best features of skills management tools.
Skills management software should provide features for tracking key metrics, improving ROI, developing key skills, and building a strong culture. Analytics also provide the ability to drill down into data to identify trends.
Skills management tools should be easy to use for all employees. This allows all teams to collaborate on skills development and share their competencies on a single platform. It also helps managers track the performance of employees more effectively.
AI-assisted skills management tools are not yet widely adopted. However, they are catching up in terms of popularity due to their ability to identify areas of potential skill development for employees.
Skills management software should have extensive integrations with HR systems, LMSs, and performance management software tools. These integrations help managers get more detailed information about each employee’s qualifications and competencies.
Skills management software should provide features to help managers track employee performance and identify ways to improve it. This way, managers can identify which skills their teams need to learn, and how they can help them achieve better results.
Career pathing allows employees to visualize their career growth in terms of skillsets. It helps them identify the skills they need to learn in the future and get immediate feedback on how they are doing with regard to future career paths.
Skills management software should have employee engagement features for managers and employees to share their thoughts about each other, help each other perform better at work, and communicate more effectively about workplace goals.
Skills management software should have skills gap analysis tools to help managers identify skills their employees need to learn and areas where they can improve.
Skills management software should have a comprehensive database of skills that includes the location of the skills, who owns those skills, and how those skills can be acquired.
Skill competency management systems allow employees to exchange information about individual competencies, as defined by their employers. This allows them to build up a competency profile that is specific to their job and makes it easier for employers to identify suitable training courses and other training programs for their employees.
Skills management software should help managers and employees set goals and identify possible actions required to achieve them. It can also provide more detailed reporting on employee performance metrics and their impact on goals.
First, HR professionals need to get a clear picture of the workforce and the skills needed for their specific industry. They also need to identify the competencies of their employees, which can be done through a process called competency mapping.
Competency mapping helps HR professionals understand what is important in a role and how employees perform in different job roles. It’s also essential for employers to know if any employees are leaving their jobs or being laid off because they don’t have the right skillsets.
When skills management tools and technology are used in an effective and efficient manner, they can help businesses fill skill gaps more effectively and improve the overall productivity of their talent.
Deploying a skills management system requires a significant amount of time and money. Therefore, it is important to choose a solution that will provide all the features needed for your organization. If you are starting from scratch with no data in place, you will need to identify your skills inventory and skills map before purchasing skills management software.
The following are some factors to consider to choose the right skills management solution.
Hiring managers and human resources professionals should evaluate the skills management software to determine if it has the integration features they need. This way, all HR information can be consolidated in a single place.
Human resources software can be expensive. However, there are many free and affordable solutions available in the market. It is important to determine the organization’s budget and then research skills management tools that can offer the features needed without exceeding that budget.
Skills management systems support different skills mapping methodologies, such as hard and soft skills, competency-based models, or behavioral models like DISC or Enneagram.
Human resources professionals should evaluate the skills management system based on whether it provides them with all the information and features they need at their fingertips. This is the only way to get maximum benefits from a skills management system.
HR professionals and managers should evaluate how user access and security is implemented in the skills management software. A good solution should allow multiple users, in different roles, to access data for updating and monitoring tasks.
There are many skills management systems available in the market. However, most of them don’t support mobile devices to help employees access their data. It is important to choose a solution that provides users with working tools on smartphones and tablets.
There are many skills management systems available in the market. However, some of the systems may not have a good reputation for their support services. It is important to choose a solution that has a wide network of partners and customer representatives to resolve any issues.
Skills management software should provide HR professionals with tutorials and documentation how to use the system. This will enhance the ease of implementation and also help them in getting maximum benefits from their investment.
Skills management systems should give the ability to customize the design and look-and-feel of your skill inventory, skills map, training programs, etc. This will allow employers to brand their system to match their corporate identity.
Choosing your company's Skills Inventory and Management software is a complex process. To help HR departments compare and benchmark all Skills Inventory and Management software, we have selected a list of 10 companies providing SaaS tools for HR.
We made a list of the best Skills Inventory and Management tools in 2021.
Skills Inventory and Management software is often combined with other HR functionalities. If your company is in need of complementary HR features, make sure to take a look at those frequent combinations:
Employers are encouraged to use skill management software to improve the productivity of their employees, reduce the cost of training new employees, and save time in managing their employees’ journeys towards learning skills.
Using skill management software will help to improve employee engagement, improve workplace productivity, help managers identify potential job candidates with appropriate skills, help businesses stay one step ahead in an increasingly competitive economy, and provide stability to businesses by improving employees’ retention rates.
A skill management system provides a platform for employers to collect information about their employees’ skills so they can improve their performance.
The purposes of skill management software are to help businesses manage their talent so they can accomplish their goals, reduce employee training costs, improve employee morale, track employee skills development, and provide data for workforce planning.
A skills matrix is a table that shows the skills and competencies employees require for their jobs and whether they possess those skills or not.