A Skills-Centric Model – Redefining the Role of Skills

Nichola Hay MBE discusses how the global workforce faces significant transformation driven by technological and economic changes during National Apprenticeship Week. Organisations are shifting towards skills-based models rather than traditional role-based approaches, emphasising continuous learning and development. The UK aims to address these challenges through initiatives like the AI Opportunities Action Plan and apprenticeship programs.

The Current Economic Challenge

The current economic landscape for both businesses and the workforce is challenging, an issue that is outlined in the recent WEF Future of Jobs report. The report identifies five key drivers reshaping the global labour market. Each one presents its own challenges and opportunities, with varying impacts across regions and industries and the interplay between these drivers creating complex patterns of job creation and displacement.

Emerging Job Markets and Policy Response

From technological change creating 10 million jobs in digital and tech, to the green transition creating five million jobs through climate adaptation, these key drivers of transformation are leading policymakers to put more focus on the role of skills within an ever-changing and dynamic economy.

UK’s AI Ambitions

The rate of change that the workplace is experiencing, and will continue to experience, is staggering. In January 2025, the Labour government published the AI Opportunities Action Plan, outlining the steps needed for the UK to position itself as a global AI leader, with a goal to train “tens of thousands” of AI professionals by 2030.

Current Skills Demand

Recent data from Skills England’s “Occupations in Demand” index provides evidence of the immediate skills challenges facing the UK economy, revealing that 7.8% of the UK’s working age population are in critically demanded occupations, with a further 38.5% in elevated demand positions.

The Need for Change

This, combined with the reality that many powerhouse industries such as finance, technology and sustainability are struggling to fill their roles, makes it clear that something needs to change.

The Growing Importance of Skills

When it comes to recruitment, reskilling, and upskilling, the value of skills cannot be understated and businesses are starting to become more aware of the skills they need to progress and be successful. This is why the role of skills within a business must change and an emphasis on key competencies and abilities must be brought to the fore. 

The Rise of Skills-Based Organisations

A trend that we are starting to see grow is businesses becoming more skills-aware, moving away from traditional job-based planning to a more fluid, capability-focused approach, with some organisations going beyond and becoming “skills-based organisations” (SBO).

Understanding Skills-Based Organisations

Simply put, becoming an SBO means emphasising skills over roles; aligning workforce planning, attraction, recruitment, professional development, performance management and talent and succession planning processes around skills needs.  

Benefits of the Skills-Based Approach

It moves beyond rigid job descriptions to focusing on actual skills, so organisations can respond faster to market changes, deploy talent more flexibly, and create clearer growth pathways for employees. Why? Because it leads to be better resource and skills utilisation, it enhances internal mobility and makes organisations more adaptable to meet emerging business challenges.

Implementing the Skills-Centric Model

By shifting their focus to a skills-centric business model, organisations can ensure that employees can shift roles based on their skills more easily, leverage diverse skillsets and employers can encourage continuous learning.

Strategic Development and Results

By taking this structured approach based on a clear understanding of required skills, organisations can better target their development investments while providing employees with clear paths for growth. The result is improved operational performance, reduced skill gaps, and a workforce that continuously evolves with business needs through optimised skill solutions, precisely aligned with organisational requirements.

The Role of National Apprenticeship Week

This National Apprenticeship Week presents an opportunity to reimagine how organisations can bridge the skills gap through structured development programmes. As organisations transition toward skills-based models, apprenticeships can serve as the foundation of their talent strategy. Apprenticeships represent a natural extension of the skills-based organisation model, offering a framework for both acquiring new talent and transforming existing workforce capabilities.

By viewing apprenticeships this way, businesses can maximise their return on development investments while contributing to the broader economic transformation outlined in national and global skills initiatives.

By Nichola Hay MBE, Director of Apprenticeships Strategy and Policy, BPP