Three Key Concepts to Understand as a Workforce Agility Expert

Understanding the systems powering workforce development, and what they can do, is a critical skill for human resources and talent management. HR teams need to be able to explain these systems to stakeholders as they build support for becoming a skills-based organization with greater workforce agility.

SkyHive has created new infographics on three key concepts behind talent management, employee engagement strategy, and better workforce management. In particular, these infographics explain the ideas behind using artificial intelligence to understand the labor market, as in SkyHive Enterprise. Skills intelligence combined with AI in HR and integrated with talent management solutions is what makes skills-based workforce management possible for most companies. 

If you want to take a deeper dive into any of these topics, you can download SkyHive’s free e-book, “Connecting the Dots in the Labor Market: The Power of SkyHive’s Dynamic Taxonomy.”

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The First Workforce Management Question: Taxonomy vs Ontology vs Knowledge Graph

The first challenge is the terminology. Explaining the arcane language of classification can be one of the first problems in implementing skills-based workforce management, or in buying the AI in HR talent management solutions that make change possible. Yet selecting the right classification system is fundamental to success.

There is no standard method of writing a job description. Different employers and government agencies will use different terms to describe the same job, or the same set of skills. So there is no guarantee that your company uses the same terms to describe workforce skills as your competitors, or that potential candidates do in their resumes or job applications. 

This can be true even when the job title is the same. Microsoft and GM both hire Software Engineers, but the programming languages, project management, and other skills could be much different.

Taxonomies, ontologies, and knowledge graphs organize knowledge that would otherwise be impossible to find and understand. Each system, in its own way, enables HR leaders to understand the labor market because they allow for apples-to-apples comparisons between different skills and roles. A good one–and a dynamically updated one–is essential to effective skill-based workforce management.

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There are many taxonomies for occupations and workforce skills, some from governments, others from private vendors. Some corporations build their own taxonomies to suit their specific needs. There is no guarantee that any of these taxonomies will suit your organization’s needs, however.

Government taxonomies, like O*NET and ESCO, are based on surveys and can be slow to pick up on new skills. That means these systems may not be precise or current enough to use for workforce management. Creating your own taxonomy ensures it will meet your organization’s needs–but then your HR team is faced with the enormous task of keeping it up to date. Skills change quickly and it is easy to fall behind.

In our e-book, we offer a three-question test for HR leaders when selecting a taxonomy:

• Is it current enough?
• Is it detailed enough?
• Can we maintain it?

SkyHive’s dynamic taxonomy keeps its classifications up-to-date and detailed enough for decision-making in talent management.

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Tracking Workforce Skills With SkyHive’s Knowledge Graph

Knowledge graphs are driving many of the online experiences we take for granted. When Amazon recommends products based on your purchase  history or Netflix suggests shows you might like, knowledge graphs are at work. The Google Knowledge Graph may be the most famous of all, serving up results for millions of online searches.

The SkyHive Knowledge Graph underlies all of SkyHive’s products, including SkyHive Enterprise and Skill Passport. The Knowledge Graph draws from a wide range of sources in real time, and uses AI to dynamically update its analysis, making it the most comprehensive and actionable tool for understanding the labor market. 

In fact there are so many factors affecting the global labor market, it takes a knowledge graph of this complexity to make sense of it. SkyHive’s Knowledge Graph draws from traditional sources, such as government statistics, but also from job postings, career profiles, and patent applications. The constant refreshing of data and AI-driven dynamic analysis ensures the Knowledge Graph stays in touch with the latest changes in workforce skills.

One global financial services company, for example, uses SkyHive tools to make sure its employees stay current with the latest anti-financial crime skills. By linking skills management to training initiatives, the company not only increased employee retention and engagement but saves by avoiding potential regulatory fines. 

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Mapping Career Pathways for Workforce Development

A major reason to move to a skill-based strategy is to improve workforce readiness and employee engagement strategies. If employers understand what current employees know and what skills will be required in the future, employers can identify potential skills gaps early. By combining learning with career advancement, organizations can ensure they stay up to date, make smart hires, and develop internal talent. That kind of strategic workforce planning is where skill-based organizations find their real return on investment.

For example, one medical manufacturing company used skills intelligence and career pathways to redeploy 20% of their workforce during one strategic pivot, which saved them $1 million in severance and recruiting costs.

To connect talent management and employee engagement strategies effectively, however, an employer needs to know the extent to which the skill profiles of different jobs overlap. Then you can target training to fill the gaps. SkyHive’s technology can express that gap both in terms of specific skills and as a percentage of skills overall in the positions.

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Three possible career pathways for a Software Engineer are:

• Staff engineer (17 percent skill gap)
• Lead developer (22 percent skills gap)
• Technical lead (32 percent skill gap)

To advance from Software Engineer to Staff Engineer, a candidate would need to learn:

• Continuous process improvement
• Presentation skills
• Team leadership

Later, to advance from Staff Engineer to Engineering Manager, the candidate would need to add skills such as:

• Business development
• Business strategy
• Customer experience management
• Regulatory compliance

This is also a strong employee engagement strategy. Another company used skill intelligence and career pathways to promote internal mobility, resulting in 83 percent of workers completing a skills profile and more than 645 courses taken to increase skills and move up.

The right dynamic taxonomy is only part of the overall skills transformation effort. HR leaders have to make a business case for skills-based transformation, define your strategy and goals, revamp your job architecture, and engage your workforce in the journey.

To look into dynamic taxonomies and career pathways in greater detail, download our new free e-book. To find out how SkyHive technology can build skill agility and support workforce management at your organization, request a demo today.