Developing Your Future Talent through a Skills-Based Approach
August 12, 2025 – Nearly 40 percent of the skills people rely on at work today will soon be outdated or replaced, recent statistics from the World Economic Forum revealed. For HR leaders, it’s a wake-up call. Talent strategies need to move faster, or the business may fall behind, according to a recent report from Korn Ferry.
“While advances in AI and automation are certainly speeding up the pace of the problem, the skills gap goes beyond just new technology,” the study said. “For example, in the engineering industry, experienced experts are retiring faster than fresh talent is stepping in. In healthcare and pharma, breakthroughs in treatments, research, and diagnostics are evolving so rapidly that training struggles to keep up. Staying ahead means building a workforce skills strategy that not only fills immediate gaps but also develops lasting capabilities.”
Korn Ferry offers a look at how to get started.
“Closing the skills gap starts with understanding what your business truly needs,” the report said. “This requires identifying the capabilities that will drive your strategy and recognizing the gaps between today’s talent skills and tomorrow’s demands.”
“The organizations I work with aren’t just changing how they hire,” said Ashish Sinha, senior client partner, EMEA practice lead – people analytics strategy, measurement & insights at Korn Ferry. “They’re transforming their entire talent management mindset through a skills-first lens.”
How do you find out what skills you already have and which ones you need next? The best starting point is your business objectives. Korn Ferry noted to ask yourself these key questions:
- Where are we now as a business?
- Where do we want to be?
- What skills will get us there?
- What skills do we currently have?
- Which ones are we missing?
Once you know the gaps, you can decide whether your current team can grow into those skills or if you need to bring in new people with the right capabilities, the study explained.
“I advise my clients to develop a clear skills philosophy that includes a committed plan for upskilling and reskilling their people to meet future demands,” said Mr. Sinha. “The organizations I work with aren’t just changing how they hire. They’re transforming their entire talent management mindset through a skills-first lens.”
Hire for Potential, Not Just Past Roles
More organizations are realizing that experience alone doesn’t guarantee the right fit, according to the Korn Ferry report. “Shifting the focus from past roles to skills unlocks access to a wider, more diverse talent pool—and helps build a workforce ready for what’s next,” it said. “But while leaders see the value in this change, many feel unprepared to act on it.”
Transferable Skills That Are in Demand
When embarking on a job search or considering a career shift, your transferable skills—those versatile capabilities gained across various roles and industries—can serve as your most powerful advantage. These skills demonstrate your adaptability and potential to thrive in new environments, even if your experience doesn’t align perfectly with a specific job description. But what exactly are they? These are abilities and expertise that you’ve gained in one role, industry, or life experience that can be applied to a new position or workplace, according to a just-released report from NPAworldwide. “Whether you’re shifting industries or advancing in your field, having a strong set of transferable skills ensures that you remain competitive and adaptable,” the report said.
Nearly 40 percent of HR leaders say skills-based hiring is critical, according to Korn Ferry’s Talent Trends 2025 survey. Yet only 17 percent feel ready to put it into practice.
So how can you sharpen your focus on skills when hiring? Korn Ferry explained to try these practical steps:
1. Rethink Job Postings to Highlight Workforce Skills. Move beyond checklists of degrees and job titles. Lead with the core skills the role requires, such as agility or adaptability. This approach reaches candidates who can deliver, even if they took non-traditional paths.
2. Make Skills a Clear Part of Your EVP. If skills matter to your business, say it clearly. Reflect this in your employee value proposition (EVP) so candidates with the right capabilities and mindset know they will be valued in your organization.
3. Pair AI Tools with Your ATS for Smarter Screening. Integrate AI tools with your applicant tracking system (ATS) to scan thousands of resumes quickly. This helps you identify the best skills-based matches, not just familiar job titles.
“But smart screening is only the first step,” the Korn Ferry report said. “To become a skills-based organization, you need to embed a skills-first mindset across your entire talent strategy. This means rethinking rewards, promotions, performance management, and capability development with skills at the center.”
Related: Why Soft Skills and Continuous Learning Are Key to Thriving in a Changing Workplace
“The clients I work with are shifting not just talent acquisition but their whole approach to talent management through a skills-based lens,” said Tracy Bosch, senior client partner, leader of work measurement, North America at Korn Ferry.
Keep the People You’ve Worked Hard to Find
Hiring the right skills is just the start. Retaining those people, especially in today’s competitive market, is what truly sets you apart, according to the Korn Ferry report. “Holding on to skilled talent gives you more than continuity,” it said. “You keep the knowledge that helps others grow and build a stronger foundation for reskilling and upskilling across your workforce.”
Korn Ferry offers three ways to help your best people stay and thrive:
1. Offer Flexibility That Fits Their Lives. Flexibility is no longer a nice-to-have. It’s a deal-breaker for many workers. More than three quarters of professionals say their employers have introduced hybrid work policies. But flexibility isn’t just about where people work anymore. It includes when and how they work, plus personalized benefits that suit their lives. Companies offering this full-circle flexibility—what Korn Ferry calls Hybrid 360—are more likely to keep people engaged, loyal, and performing at their best. Those that don’t risk losing talent to more inclusive, forward-thinking employers, the report explained.
2. Give People Purpose and Room to Grow. People stay when they connect to something bigger than their daily tasks, according to the Korn Ferry report. A strong sense of purpose and knowing their work matters can be just as powerful as a promotion. Link individual roles to the broader mission. Recognize contributions. Foster a culture that values meaning as much as metrics. “A purpose-driven environment with opportunities for growth boosts retention,” said Mr. Sinha.
3. Make Internal Mobility Real. Career development isn’t a straight line. It’s about discovering what’s possible—across roles, functions, even mindsets. Give people room to move sideways or step up, wherever their growth takes them. Organizations with active internal mobility programs see 41 percent higher retention rates, LinkedIn’s Global Talent Trends report revealed. Korn Ferry explained that these programs show people there’s a future for them right where they are.
Grow the Skills That Will Shape What’s Next
“Your business can’t just keep pace,” the Korn Ferry report said. “It needs to lead. That means investing in your people and helping them grow the skills they’ll need next. Employees are clear about what they want.”
More than two-thirds say they would stay with a company that offers advancement and upskilling—even if they don’t love their current role, according to Korn Ferry’s Talent Trends 2025 report. The message? “Prioritize learning if you want to keep your best people,” the study said. “Start with skills adjacency and help employees build capabilities that are closely connected to what they already do.”
“By nurturing adjacent skills, employees can transition seamlessly, keeping the organization dynamic and resilient,” said Mr. Sinha. “And remember, upskilling can’t be a one-time initiative. A true culture of continuous learning is woven into daily work—through structured programs, regular coaching, and a shared commitment to growth at every level.”
Related: What Skills Do CEOs Need Today to Succeed
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
