Skills-first: Three ways organisations can realise the equity opportunity

A man and a woman looking at work on a table
  • Insight
  • 4 minute read
  • March 07, 2024

Adopting a skills-first approach to talent presents very real equity opportunities that can benefit both organisations and society.

by Miral Mir and Harriet Newlyn

A skills-first approach to talent provides a clear opportunity to democratise access to jobs and greater equity, and a growing number of forward-thinking organisations are adopting such an approach.

What does it involve? Put simply, it’s a talent strategy that focuses on whether someone has the right skills and competencies for a particular role, rather than how their skills have been acquired. In other words, it looks at an individual’s future potential rather than their past experience, which can help remove unintended bias from attraction and recruitment processes.

You can read more about skills-first in a recent PwC supported report published by the World Economic Forum (WEF), which highlights its role in generating higher productivity, prosperity and inclusivity for all. But its potential to help improve women’s participation, representation and inclusion at work may have significant impact– and is something worthy of much closer examination.

An opportunity to bridge the gender skills gap

Why zero in on gender? True, it’s only one of the dimensions of diversity where workplace divides exist. But bridging the gender gap is simultaneously a societal challenge, an ethical imperative and an economic necessity. If women are not upskilled to play their full part in the work of the future, or their skills aren’t fully recognised, then society and businesses will miss out on half of the potential workforce – to the detriment of the global economy, and women themselves.

Especially when we consider that globally women’s labour force participation rates are 25 percentage points lower than men. They have less access to high paying jobs than men, and workforce disruption driven by Artificial Intelligence (AI) is more likely to impact job losses for women.

Take all of this together, and when it comes to creating greater equity and inclusion in the workplace – including in terms of gender – it looks like the skills divide may currently be part of the problem. But it needn’t be. A skills-first approach can turn skills into a positive driver of representation and progression both for women and other underrepresented groups, levelling the playing field by prioritising individual capabilities and competencies over factors like social connections, whilst focusing on upskilling and reskilling.

Research indicates that in jobs where women are underrepresented, adopting a skills-first approach to hiring presents an opportunity to increase the proportion of women in candidate pools by 24% more than it would for men. 

A skills-centred approach also benefits the businesses that adopt it, by enabling them to stay agile in responding to emerging needs, and spurring innovation.

Building inclusion across the workforce

Equally crucial, by widening access to jobs and opportunity, skills-first fosters diversity. Inclusion also has a key role to play when it comes to skills. PwC’s #InclusionMatters research highlights that women with workplace inclusion scores in the top quartile of our respondents are an average of 1.7 times more likely than the women with lower inclusion scores to seek out opportunities to learn and develop new skills. What’s more, they are 14 percentage points more likely to have a clear sense of how the skills their job requires will change in the next five years. And they are on average 21 percentage points more confident that their employers will provide them with the tools, resources and opportunities to build vital skills for the future; in areas such as digital skills, green skills, and critical-thinking and leadership skills. So rising inclusion and skills go hand-in-hand.

1.7x

Women with higher inclusion scores are 1.7 times more likely than the women with lower inclusion scores to seek out opportunities to learn and develop new skills.

PwC Inclusion Matters insights, 2024
14%

They are also 14% more likely to have a clear sense of how the skills their job requires will change in the next five years.

PwC Inclusion Matters insights, 2024
21%

They are also 21% more confident that their employers will provide them with the appropriate upskilling support with key skill development.

PwC Inclusion Matters insights, 2024

Measure skills-first impact consistently

Without hard metrics and data showing how skills-first is influencing inclusion and diversity, it’s impossible to know whether it is succeeding. So the mantra is to assess the diversity and equity impacts and opportunities of skills-first strategies, and measure to make sure they are capitalising on those opportunities. Setting and tracking goals is critical to achieving milestones and gauging progress. It's how we spotlight the need for critical action and make sure leaders are held to account. Moreover, it gives the agility to pivot and tackle obstacles, keeping goals within reach, even when the path gets bumpy.

Key takeaways Next steps for your organisation

While this blog focuses more specifically on how skills-first can support gender inclusion and equity at work, it’s important to stress that it can do the same for other underrepresented demographics, which can ultimately drive equality in broader society.

Here are three ways you can work towards gender equity in your organisation through a skills-first approach:

  1. Skills mapping: Start with mapping out your organisations’ current skills portfolio, and assess the skills needed for the future to stay competitive and effective. As you design your talent strategy to fill these gaps, connect the dots making sure that this strategy is fully aligned with your inclusion and diversity strategy and goals as a means to accelerate diversity progress.
  2. Workplace Inclusion: Foster an inclusive culture that provides everyone with an opportunity to thrive and fulfil their career potential, including equal readiness for and access to opportunity for upskilling and reskilling.
  3. Measure consistently: Maintain focus through consistent measurement of the business, workforce and diversity impacts of your skills-first approach. This should form an integral part of broader inclusion and diversity measurement efforts which includes a focus on goals, tracking and transparency.

You know what your future workforce should look like: diverse, inclusive, and equipped with the right skills. One of the many ways to build that is to put skills first.

 

Last updated on 7 March 2024.

Learn more about the research

Read our full #InclusionMatters research insights

Authors

Harriet Newlyn

Harriet Newlyn, Global workforce and HR transformation capability co-leader, partner, PwC UK

Miral Mir

Miral Mir, Workforce Transformation, Manager, PwC UK

More #InclusionMatters research insights

Inclusion Matters insights

Explore research based insights on workplace inclusion, and its specific impacts on women at work.

PwC’s Inclusion First strategy

At PwC, our Inclusion First strategy is for our people, our clients and our world. Learn more about our approach to Inclusion and Diversity.

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