Simply Skills Chat: The commerciality of skills
“Your skills are only as good as the system of work enables them to be.”
Teresa draws on her experience from skill transformations at LSEG, the World Bank Group and more to explore with John the evolving role of skills in shaping business strategy, workforce planning and HR’s impact on commercial outcomes.
As organisations navigate rapid technological advancements, including the rise of AI, we dig into the importance of aligning skills investment with business performance.
We challenge leaders to view skills development as a core business strategy that impacts revenue, efficiency and competitive advantage.
How? It’s a ‘whole system’ problem, unlocked by having the right strategic intent and data-driven decision-making. HR and L&D teams must reach beyond traditional approaches and proactively shape their future of work.
From rethinking talent strategy through a financial lens to leveraging data for informed workforce planning, we cover practical steps to become more systematic and sustainable in skills development.
Listen along as we go on a journey through strategic workforce planning, task intelligence, artificial intelligence, skills and how HR can make any sense of all the above.
Here’s a few highlights:
“Skills are a business problem, not an HR problem. If we don’t align skills investment with business goals, we’re just spending money to lose 90% of it within 30 days”
“HR’s credibility in commercial discussions comes from being data-literate. You can’t walk through the door with confidence if you don’t understand the P&L and how skills impact business performance”
“Two companies can have access to the same talent, the same skills, and the same technology—but one will thrive, and one will struggle. The difference? Culture, leadership, and how they activate those skills.”
“L&D has a unique opportunity to be the central intelligence of the business—connecting projects, reducing inefficiencies, and shaping the workforce of the future.”
The commerciality of skills
Skills investment must align with business outcomes, impacting both revenue generation and cost reduction
Non-commercial aspects such as management behavior, employee autonomy, and organisational incentives are crucial to skills development
Ebbinghaus' Forgetting Curve: Without reinforcement, 90% of training is lost in 30 days
Skills investment must be systematic, considering broader organisational dynamics
Skills as a Business Problem, Not Just HR's Responsibility
HR cannot drive skills transformation alone; it requires business buy-in and cross-functional collaboration
Skills development should start with business needs rather than generic lists (e.g., World Economic Forum’s future skills - this isn’t granular or precise enough - you need to build your own unique model and context)
Leaders should examine the work that drives profitability, efficiency and customer outcomes before identifying necessary skills - but be careful not to ‘boil the ocean’ and analyse everything
Data, ROI, and Measuring Skills Impact
A data-driven approach is crucial for identifying where skills investment will have the greatest impact
HR teams must become data-literate to engage in commercial conversations
Business cases for skills investment should include financial and operational metrics, linking skills to revenue generation, cost savings, and competitive advantage
AI and the Future of Skills
AI is reshaping the skills landscap. Companies need to identify which work might be automated and which require human intervention
HR must proactively engage in AI discussions to shape how AI-driven changes impact workforce strategy (find out how here: Unlocking productivity from AI and skills)
If HR fails to take the lead, decisions will be made around them, rather than with them
Culture as a Driver of Skills Activation
Culture dictates whether skills investments succeed or fail
Toxic leadership and lack of psychological safety erode skills investments as employees either leave or fail to apply new skills
Assess cultural readiness for a skills-based approach before major investments
"Culture is the personality of the organisation, so shaping it requires intentional leadership and strategic interventions
Where HR Should Start: Practical Steps for Skills Transformation
Start with pilot projects in areas where skills gaps directly impact profitability or customer experience
Identify "green shoots": teams or departments already engaged in skills transformation and expand from there
HR should be connecting business leaders, finance, and operational teams to integrate skills strategy into broader workforce planning
Skills as an Ongoing Investment, Not a One-Time Project
Many organisations are already spending on skills without realising it, but without strategy, much of this investment is wasted
Poor alignment between skills programs and business needs leads to attrition, disengagement and financial loss
Organisations should consider skills investment as part of long-term strategic planning, rather than isolated training initiatives
L&D's Role in Skills Transformation
L&D teams have a strategic role in enabling knowledge sharing and connecting skills initiatives across the organisation
They should act as a central intelligence hub, linking workforce development with business priorities
Internal networking within organisations is key: skills transformation is driven by collaboration
How to get started?
HR’s job isn’t to turn the company into a skills-based organisation, it’s to help the business solve real problems using skills as a tool.
🚀 Stop talking HR, start talking business – Frame workforce challenges in terms of productivity, performance, and revenue.
📊 Use skills data, not assumptions – Invest in skills intelligence to make smarter workforce decisions.
🤝 Align with the C-suite – Workforce planning isn’t just HR’s job. Get buy-in from business leaders by focusing on business critical skills.
It’s all about ensuring your organisation has the right skills to execute its strategy.
Click to read about global fintech Finastra's skills journey.