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5 Reasons Why You Should Implement a Skill Management System

5 Reasons Why You Should Implement a Skills Management System

The skills, competencies, and abilities of your employees are critical to the success factor your company is aiming for. Acquiring the knowledge & information about your employees is a significant task every company should plan for in the initial process. Having information on their skills, strengths, and weaknesses will put the managers in an advantageous position so the company can benefit from them.

👉 What is Skills Management?

Skills Management is not a complex term to get a hold of. It simply entails the process of mapping down each individual’s role in the company according to their skills and expertise.

This approach includes learning more about their abilities & competencies, as well as, how you may allocate them to roles that will not only improve your operational procedures but also increase their job satisfaction.

After all, we all love to do the things that we enjoy and excel at.

👉 Why Do You Need a Skills Management System?

The efficiency with which you manage the skills of your human resources, i.e. how well you map, process, and analyze the skills of people and occupations, determines the success of your organization.

This means you’ll need a mechanism to figure out who has what expertise and how proficient they are at it.

This is easier said than done, because any firm, large or small, has individuals with a diverse range of skill sets, known capabilities, and hidden abilities.

To guarantee that a company makes the best use of its employees’ skills and talents, it is critical that they implement a system to maintain their skill list organized.

In this context, an effective employee skill management system provides numerous benefits to a company, the top five of which are listed below.

💪🏼 1. Provides an Updated Dataset on Skills and Roles of Employees

Human resources are a company’s most precious asset; therefore, suitable tools and methods to utilize employees’ skills and competencies are critical for the company’s growth.

The skill management system keeps an up-to-date skills inventory. It highlights the present workforce’s abilities, education, and experiences at any given time.

This enables the organization’s management to make the most use of its most valuable asset i.e. human resources.

Every business must make strategic decisions about its workforce on a regular basis, such as hiring staff to meet the current and future needs of various business units, identifying key employees for a new business venture or development project, identifying replacements for departing employees and managers, devising a workforce plan for future strategic needs, and so on.

All of this necessitates management’s thorough understanding of the current workforce’s skill set. An effective employee skill management system can provide the required dataset on employees so you can make rational decisions based on them.

On the basis of their skills and appropriate experience, management would assign tasks and duties to its personnel. 

💪🏼 2. Ensures Correct Resource-Task Mapping

Many times, businesses fail not because of a lack of capable resources, but because the wrong resource is assigned to the wrong task.

The first stage in any project/business task planning should be a thorough grasp of the available resources and a thorough understanding of the talents these resources possess.

This knowledge must be obtained before the business process can begin or even be agreed to begin. 

To capitalize on individual capabilities & increase group performance, the correct resource-task mapping is critical.

Choosing the wrong person for a project can cause it to fail even before it begins. Individual, departmental, or company-wide skills reports are generated by an effective personnel skill management system.

These reports provide answers to many important queries, such as; What are the resource’s skills? Does the resource have any certification for the skills? What is the level of competence? 

Before forming a team for any business activity, it is critical to first determine the group’s skill level of its members. It’s critical to ask questions like;

  • What percentage of the required competencies does our team possess?
  • What are the skills gaps, and how can they be filled?

These are only a few of the skill-related questions that may occur in an organization & having a clear approach to obtain answers is critical.

💪🏼 3. Reveals Potential Skills & Exposes Skill Gaps 

Businesses, as well as their people, must adapt swiftly to a changing environment these days. The ability to understand the talents of the company’s employees, their capabilities, and the competencies they lack is the most significant necessity for a seamless transition.

The organization can use this information to plan training and seminars to improve existing abilities and fill skill shortages. 

To bridge the skill gap, both formal & informal learning sessions, and learning interventions can be organized.

The rate at which a firm grows is obviously determined by early identification of the abilities lacking in an organization’s resources & appropriate efforts to bridge such skill gaps.

Individual development plans that target training where it’s most required might be created with the help of a skill management system. It benefits all tiers of an organization’s workforce.

It will help the complete hierarchy of an organization as follows;

  • Individual Employees: 

They become aware of the abilities required for their job. After, they are able to create personal goals for progress as a result of their enhanced identification and understanding of their own strengths and weaknesses.

  • Managers: 

Knowing the strengths and limitations of the employees who report to them allows them to select the best employee for the position.

  • Management:

An organization’s ability to plan for the future, construct the training required, and prioritize areas for skill development is aided by having a comprehensive perspective of skills and skill gaps across the organization.

💪🏼 4. Motivates Employees to Increase Their Time-to-Competency

The rate at which an organization’s workforce is converted into a competent one is the rate at which it achieves its maximum ROI.

User productivity, organizational efficiency, and project success are all affected by employee competency.

It is a well-known reality that technology advances at an alarming rate, and market competition is fierce.

Today’s enterprises face these two key obstacles on their way to success, rendering any previously acquired skill set obsolete in the blink of an eye.

Workforces that are more taught and equipped with the latest technology, standards, or procedures contribute the most to corporate objectives.

Accelerating time to proficiency necessitates a strategy, dedication, time, and effort. An effective skill management system reduces the time it takes to become competent and, as a result, improves the proficiency curve.

💪🏼 5. Increases the Efficiency of People Management

Employee tracking in businesses has long been encouraged and practiced to increase efficiency. Traditional approaches like the use of Excel sheets to track workforce abilities do not perform as well as an effective skill management system.

Traditional approaches are also ineffective and antiquated for SMEs because they are not only time-consuming and slow, but it is nearly difficult to verify that they reflect the most up-to-date skill set of their current personnel.

This critical capability is provided by an effective skill management system, which plays a critical part in all important business activities such as resource planning, organization, coordination, and finally the provision of vital resource-related reports for analysis and action.


👉 How Can You Get an Effective Skills Management System?

It’s important that you choose an effective Skills Management System which is also easy to use and provides data with complete accuracy.

This requires that you hire professionals to take care of it. Growtribe Solutions have been providing companies with effective skill management system for years. If you want to improve your company’s performance and efficiency of its process, contact us now at info@growtribe.solutions.

🚀Interested To Find Out More About Competency & Skills Management?

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About The Author: See Wei Ngiam

Ngiam’s versatile background in HR management and extensive experience working with MNCs such as Kimberly-Clark and Amway have allowed Ngiam to design Growtribe in a practical way to enable people leader & manager to accelerate people growth through a simple and yet impactful approach.

Want to find other interesting discussions? Then connect with Ngiam now via his LinkedIn Profile and follow Growtribe’s LinkedIn Page.

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