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.
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.
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.
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.
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:
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.
Explore research based insights on workplace inclusion, and its specific impacts on women at work.
At PwC, our Inclusion First strategy is for our people, our clients and our world. Learn more about our approach to Inclusion and Diversity.