Imagine starting a new job and realizing half of what you learned in school is already outdated. That’s the reality for 40% of tech workers today.
40% of tech workers expect skills to be outdated within three years, urging companies to prioritize smarter learning strategies for 2025. Hence the rise of skills-based training and learning.
Businesses need to get the best out of their staff, and one of the most effective ways to achieve this is by upgrading their skill set. Skill-based training can open up a whole new world of knowledge and expertise, making employees more productive, efficient, and capable of achieving business goals.
The American Society for Training and Development carried out a study that found that businesses that offer comprehensive training for their staff have a 218% higher income per employee compared to those with less training and benefit from a 24% higher profit margin. In this blog, we’ll explore why skill-based training should be part of your onboarding process to get new hires up to speed quickly.
What is Skill-Based Training?
Skills-based training is a way of developing employees’ expertise by providing them with the abilities they need to perform at their best in their specific roles. Unlike traditional training approaches, which tend to prioritize knowledge or theory-based learning, a skills-based approach focuses on the practical application of certain skills.
Think of it as moving from “knowing” to “doing,” and it applies to all types of training, including new hire training, ongoing training, and transitional training.
Unlike traditional methods, which often focus on broad, theoretical knowledge, this approach zeroes in on the skills your employees need today and those they’ll need tomorrow.
Why Does It Matter?
- The Skills Gap Is Real: Research shows that nearly 40% of employees believe their current skill set won’t meet future job demands.
- Retention Is Linked to Growth: Employees are 86% more likely to stick around if their employer invests in their development.
- Productivity Skyrockets: Skilled employees complete tasks faster, better, and with fewer mistakes.
Types of Skills-Based Training: From Soft Skills to Hard Truths
To build a winning workforce, focus on these key categories:
- Technical Skills
- Example: Coding boot camps where software developers create real apps, troubleshoot bugs, and collaborate on platforms like GitHub.
- Soft Skills
- Example: Role-playing scenarios to practice conflict resolution or enhance emotional intelligence during customer interactions.
- Proprietary Skills
- Example: Training employees on your company’s unique tools, like a custom CRM system.
- Transferable Skills
- Example: Sharpening project management techniques that can be applied across departments and industries.
The rise of AI and digital tools has made it easier than ever to implement skills-based training in a business. For example, video content has emerged as a powerful training tool that can enhance learner engagement, accelerate skill development, and improve knowledge retention. Modern learners, accustomed to quick, visual information, find video modules particularly effective in maintaining focus and motivation.
Emerging Trends in Skills-Based Training
The landscape of skills-based training is rapidly evolving, with new trends enhancing its effectiveness and accessibility:
- Gamification: Incorporating game-like elements such as leaderboards, points, and rewards makes learning more engaging and motivates employees to complete training modules.
- Personalized Learning Paths: AI-driven platforms can tailor training programs to individual employees’ strengths, weaknesses, and career aspirations, optimizing learning outcomes.
- Microlearning: Short, focused training modules (often delivered via mobile apps) cater to modern employees’ preference for on-demand, bite-sized content.
- AR/VR-Based Training: Augmented and virtual reality tools simulate real-world scenarios, offering hands-on practice in a risk-free environment—ideal for roles requiring technical or manual skills.
- Social Learning Platforms: Encouraging collaboration and knowledge-sharing through peer-to-peer platforms fosters collective growth and embeds learning into daily workflows.
Benefits of skills-based training
1. Boosts Team Productivity
Employees gain role-specific skills that empower them to complete tasks efficiently which results in Improved productivity and greater organizational success.
2. Enhances Work Quality
Staff can perform tasks to a higher standard, resulting in better project outcomes.
3. Increases Employee Engagement and Retention
Investment in employee skills development shows employees they’re valued, leading to higher job satisfaction and retention rates.
4. Improves Adaptability
Employees trained in evolving trends and technologies can better adapt to market changes.
5. Fosters Career Growth
Training opens doors for promotions and personal development, benefiting both employees and the organization.
Example: Amazon’s Upskilling 2025 Initiative
Challenge:
Amazon, one of the world’s largest employers, realized that automation and AI were rapidly changing job requirements. Many employees in lower-skill positions risked becoming obsolete if they weren’t retrained for higher-tech roles.
Solution:
In 2019, Amazon launched the Upskilling 2025 Initiative, a $1.2 billion investment in employee training programs. The goal was to provide 100,000 employees with access to skills-based training for in-demand jobs in areas like cloud computing, cybersecurity, and machine learning. Some programs included:
- Amazon Technical Academy: Trained non-technical employees to become software engineers.
- Machine Learning University: Offered AI/ML training for employees who wanted to transition into tech roles.
- AWS Training and Certification: Prepared employees for cloud-related jobs.
Results:
- Thousands of employees successfully transitioned into higher-paying, in-demand roles within Amazon.
- Employees who completed the programs saw significant salary increases and career advancement opportunities.
- Amazon solidified its position as a leader in workforce development, setting a benchmark for other large companies.
Okay but that’s Amazon. You don’t have $1.2 billion to invest. But don’t worry, you don’t need to. With tools like Whale, you can implement skills based training with very little investment.
Why is Skill-Based Learning Important Now?
Skill-based learning can help harness the necessary skills that allow for personal and professional growth to help organizations reach their goals faster. It bolsters the confidence of individuals in the team, improves job satisfaction, and makes employees more adaptable to changing trends and technologies.
Developing practical skills enhances expertise and fosters the growth of soft skills, driving a continuous cycle of skill development. For instance, when an employee masters a new skill, they can share that knowledge with colleagues and play a vital role in bridging skill gaps within the team.
How to Implement Skills-Based Training?
Map out existing skills
The first step to implementing training is to map the skills present in your organization, and the proficiency levels for each employee, so you can create a clear path for development and growth.
Define ways to close the gaps
With a skills ontology to hand, you have a thorough overview of the skills in your workforce so you can ensure any training is relevant and useful. You also need to define measurable goals that will close any skills gaps effectively. Pinpoint where training efforts need to be focused, and which skills are needed, based on the skills ontology.
Tailor training accordingly
Make sure that the training content provided matches the expected performance level for your staff and the skills they need to improve immediately. If the individual intends to reskill, for example, then the skills needed for their new role should be a priority. Don’t neglect the value of collaborative learning in this area—internal expertise can, and should, be shared to speed up the process.
Measure the impact
Lastly, once you’ve made the move to a skills-based approach, you need to measure the impact so you can iterate accordingly. How well are certain platforms performing, and how is skill-based training improving your team’s adaptability and versatility?
Specifically, focus on key metrics like the percentage of the team who have completed must-learn activities, how many are performing at the expected skill level for their current role (both of these scores should ideally be 100%), and how many have upskilled and can progress to a more senior position. It’s also worth tracking the average time people need to improve their skill level.
Bottom Line? Skills Are the Currency of the Future
Equipping employees with the precise tools they need to excel in their roles not only unlocks higher productivity and improved job satisfaction in your team but also future-proofs your workforce against the challenges of tomorrow. A well-executed skills-based training strategy creates a ripple effect—boosting individual growth, fostering team collaboration, and driving organizational success.
As the data shows, investing in employee development isn’t just a checkbox exercise; it’s a necessity for staying competitive. The time to embrace this transformative approach is now because a skilled workforce isn’t just an asset; it’s the foundation of a thriving business.
