The Rise of the Skills-Based Organisation
Today's employers need to continually learn and adapt to emerging technologies and skills if they are to thrive in the talent landscape.
The head of reward at one of our clients said something at our last meeting that really struck me: “We have always paid for skills — we just didn’t call it that.”
That rang very true and you only have to look back at history to find several examples where organisations have paid over the odds to attract and retain talent. This is going back a bit, but think about Genghis Khan’s Mongol horde. The Horse Archer was able to earn much more money than any other soldier in the horde based on his ability to shoot an arrow backwards while riding a horse.
In today's world maybe the software developer with Artificial Intelligence (AI) skills is the modern equivalent of the Horse Archer. They are able to create more value than a non-AI developer. Just as the Mongolians used new tactics to conquer new territories, today's employers need to continually learn and adapt to emerging technologies and skills if they are to thrive in the current (and future) talent landscape.
While skills may not be new, our ability to use them at a level where we can drive actionable insight beyond the job family certainly are. For example, five years ago organisations realised that they needed to be more data-driven and that they needed data Centres of Excellence (COEs) where all the data expertise was concentrated within a few highly skilled teams.
Now, the skills-based organisation sets out to do something revolutionary versus the COE model. Using the same example of data, a skills-based organisation sets out to build data skills in everyone with an interest, skills adjacency or potentially a role requirement around it. Now it’s not just the COE that’s data-savvy but, thanks to knowledge being shared across the workforce, the entire organisation.
Take the example of AI. So that an organisation can truly drive exponential change and seize the competitive advantage we all believe AI will bring, should it hire a Chief AI Officer with a small team of highly skilled individuals? Or does it require cultivating a basic level of knowledge across a spectrum of the workforce, enabling the rule of many in order to realise this change?
Whatever budget you might set up for the skills journey, put the same amount aside for change management. And some IT resources to help get your system going.
Another important aspect of the skills-based organisation is creating fungibility across the workforce. We all want to have the ability to redeploy resources at a moment’s notice to areas of high demand. Recent cost pressures driven by high inflation have only added to this need. Skills intelligence across the workforce provides the foundation but a skills-based organisation can only be achieved with structure.
An organisation will need to create a common language around skills so that its technology team and the finance department can cross-compare the type of skills they have and understand if the finance analyst in an obsolete division has the necessary pre-requisite skills to be redeployed into a high demand software developer role. Being agile as an organisation is just as much about structure as it is about methodology. You need structure, processes and rules for an agile organisation to succeed. The same goes for the skills-based organisation of tomorrow.
Let’s go back to our AI problem. At Aon we monitor labour market trends — just one of the data sources that we use to help our clients make better people decisions. And what stands out is that more and more organisations are looking for AI skills, which brings to mind a quote from a Forbes article that states “AI won’t take jobs, but people who use AI will take jobs from those who don’t" – and our analysis is really starting to evidence this. For example, we have seen job ads for software engineer roles that require AI skills quadruple over the last year — and at previously never seen price points. For research scientists, it nearly doubled with a similar pay impact.
That means two things:
- AI skills are entering our workforces faster than ever before
- AI skills are breaking all sorts of records on the premium that they come with
Are we doing anything to prepare for AI? We need to understand how it will impact workforces, roles and individuals within those roles.
Those two things together present an interesting challenge to those of us in Human Resources — if we bet the house on something, we better get it right. The rule of many we need to solve for, fungibility is a byproduct of structure and if we get both these right any external shock to our eco-system, either positive or negative, should not faze us anymore.
The skills-based organisation with the right structure in place can be confident that tomorrow (while different from today) is just “another” tomorrow and it can evolve and change whatever the future holds.
-
John McLaughlinPartner, Talent Solutions; Europe, the Middle East and Africa, Aon
Aon's Better Being Podcast
Our Better Being podcast series, hosted by Aon Chief Wellbeing Officer Rachel Fellowes, explores wellbeing strategies and resilience. This season we cover human sustainability, kindness in the workplace, how to measure wellbeing, managing grief and more.
-
Podcast 10 mins
Better Being Series: Discover the ‘Blue Zones’ Where People Live Longer -
Podcast 20 mins
Better Being Series: Improving Your Financial Wellbeing -
Podcast 17 mins
Better Being Series: Are You Taking Care of Your Digital Wellbeing? -
Podcast 19 mins
On Aon Podcast: Better Being Series Dives into Women’s Health -
Podcast 29 mins
On Aon’s Better Being Series: The World Wellbeing Movement -
Podcast 28 mins
On Aon’s Better Being Series: Mental Health and Creating Kinder Cultures -
Podcast 25 mins
On Aon’s Better Being Series: Managing Loss and Grief -
Podcast 24 mins
On Aon’s Better Being Series: Measuring Wellbeing -
Podcast 25 mins
On Aon’s Better Being Series: Physical Wellbeing and Resilience -
Podcast 23 mins
On Aon’s Better Being Series: Human Sustainability
Aon Insights Series UK
Expert Views on Today's Risk Capital and Human Capital Issues
-
Article 2 mins
Introduction: Clarity and Confidence to Make Better Decisions -
Article 2 mins
The Age of Rising Resilience – An Economic Outlook -
Article 3 mins
Building Resilience Against the Constant Cyber Threat -
Article 2 mins
Making Better Decisions – A Treasurer’s Perspective -
Article 2 mins
How to Balance the Conflicting Forces of Efficiency, Performance and Wellbeing -
Article 3 mins
Seizing the Opportunity: Building a Comprehensive Approach to Risk Transfer -
Article 2 mins
Tapping New Markets to Unlock Deal Value -
Article 5 mins
The Rise of the Skills-Based Organisation -
Article 2 mins
Creating a Fair and Equitable Workforce for Everyone -
Article 3 mins
The Year of the Vote: How Geopolitical Volatility Will Impact Businesses -
Article 2 mins
The Aon Difference
Construction and Infrastructure
The construction industry is under pressure from interconnected risks and notable macroeconomic developments. Learn how your organization can benefit from construction insurance and risk management.
-
Article 8 mins
How North American Construction Contractors Can Mitigate Emerging Risks -
Article 7 mins
Managing Construction Risks: 7 Risk Advisory Steps -
Article 7 mins
Unlocking Capacity and Capital in a Challenging Construction Risk Market -
Article 7 mins
Protecting North American Contractors from Extreme Heat Risks with Parametric -
Article 5 mins
How Climate Modeling Can Mitigate Risks and Improve Resilience in the Construction Industry -
Report 1 mins
Construction Risk Management Europe Report 2023 -
Article 8 mins
Parametric Can Help Mitigate Extreme Heat Risks for Contractors in EMEA -
Article 9 mins
How the Construction Industry is Navigating Climate Change -
Article 11 mins
Top Risks Facing Construction and Real Estate Organizations
Cyber Labs
Stay in the loop on today's most pressing cyber security matters.
-
Cyber Labs 9 mins
Bypassing EDR through Retrosigned Drivers and System Time Manipulation -
Cyber Labs 10 mins
DNSForge – Responding with Force -
Cyber Labs 7 mins
Unveiling "sedexp": A Stealthy Linux Malware Exploiting udev Rules -
Cyber Labs 3 mins
Command Injection and Path Traversal in StoneFly Storage Concentrator -
Cyber Labs 7 mins
Adopt an AI Approach with Confidence, for CISOs and CIOs -
Cyber Labs 3 mins
Responding to the CrowdStrike Outage: Implications for Cyber and Technology Professionals -
Cyber Labs 10 mins
DUALITY Part II - Initial Access and Tradecraft Improvements -
Cyber Labs 17 mins
Cracking Into Password Requirements -
Cyber Labs 57 mins
DUALITY: Advanced Red Team Persistence through Self-Reinfecting DLL Backdoors for Unyielding Control -
Cyber Labs 7 mins
Restricted Admin Mode – Circumventing MFA On RDP Logons -
Cyber Labs 9 mins
Detecting “Effluence”, An Unauthenticated Confluence Web Shell -
Cyber Labs 10 mins
Flash Loan Attacks: A Case Study
Cyber Resilience
Our Cyber Resilience collection gives you access to Aon’s latest insights on the evolving landscape of cyber threats and risk mitigation measures. Reach out to our experts to discuss how to make the right decisions to strengthen your organization’s cyber resilience.
-
Article 9 mins
Building Resilience in a Buyer-Friendly Cyber and E&O Market -
Article 11 mins
A Middle Market Roadmap for Cyber Resilience -
Article 8 mins
Lessons Learned from the CrowdStrike Outage: 5 Strategies to Build Cyber Resilience -
Article 8 mins
Responding to Cyber Attacks: How Directors and Officers and Cyber Policies Differ -
Article 7 mins
Why Now is the Right Time to Customize Cyber and E&O Contracts -
Article 6 mins
8 Steps Toward Building Better Resilience Against Rising Ransomware Attacks -
Article 7 mins
Mitigating Insider Threats: Managing Cyber Perils While Traveling Globally -
Article 5 mins
Managing Cyber Risk through Return on Security Investment -
Article 10 mins
Mitigating Insider Threats: Your Worst Cyber Threats Could be Coming from Inside -
Article 9 mins
Why HR Leaders Must Help Drive Cyber Security Agenda -
Article 10 mins
Escalating Cyber Security Risks Mean Businesses Need to Build Resilience
Employee Wellbeing
Our Employee Wellbeing collection gives you access to the latest insights from Aon's human capital team. You can also reach out to the team at any time for assistance with your employee wellbeing needs.
-
Article 9 mins
The Next Evolution of Wellbeing is About Performance -
Article 6 mins
Three Ways Collective Retirement Plans Support HR Priorities -
Article 9 mins
How the Right Employee Wellbeing Strategy Impacts Microstress and Burnout at Work -
Podcast 19 mins
On Aon Podcast: Better Being Series Dives into Women’s Health -
Article 7 mins
Making Wellbeing Part of a Company’s DNA -
Podcast 24 mins
On Aon’s Better Being Series: Measuring Wellbeing -
Podcast 25 mins
On Aon’s Better Being Series: Physical Wellbeing and Resilience -
Article 7 mins
Why Workforce Wellbeing is Vital to Company Performance -
Article 7 mins
COVID-19 has Permanently Changed the Way We Think About Wellbeing
Environmental, Social and Governance Insights
Explore Aon's latest environmental social and governance (ESG) insights.
-
Article 8 mins
Why ESG Is Even More Important In A Crisis Like COVID-19 -
Podcast 16 mins
On Aon Podcast: Approach to DE&I in the Workplace
Q4 2023 Global Insurance Market Insights
Our Global Insurance Market Insights highlight insurance market trends across pricing, capacity, underwriting, limits, deductibles and coverages.
-
Article 12 mins
Q4 2023: Global Insurance Market Overview -
Article 13 mins
Top Risk Trends to Watch in 2024
Regional Results
How do the top risks on business leaders’ minds differ by region and how can these risks be mitigated? Explore the regional results to learn more.
-
Article 12 mins
Top Risks Facing Organizations in Asia Pacific -
Article 12 mins
Top Risks Facing Organizations in North America -
Article 10 mins
Top Risks Facing Organizations in Europe -
Article 8 mins
Top Risks Facing Organizations in Latin America -
Article 8 mins
Top Risks Facing Organizations in the Middle East and Africa -
Article 9 mins
Top Risks Facing Organizations in the United Kingdom
Human Capital Analytics
Our Human Capital Analytics collection gives you access to the latest insights from Aon's human capital team. Contact us to learn how Aon’s analytics capabilities helps organizations make better workforce decisions.
-
Article 14 mins
How Technology Will Transform Employee Benefits in the Next Five Years -
Podcast 18 mins
On Aon Podcast: Technology Impacting the Future of Health and Benefits -
Article 8 mins
Integrating Workforce Data to Uncover Hidden Insights -
Article 9 mins
How Employers Can Use Data to Improve Their Health Plans -
Podcast 24 mins
On Aon’s Better Being Series: Measuring Wellbeing -
Article 11 mins
Designing Tomorrow: Personalizing EVP, Benefits and Total Rewards -
Article 9 mins
How to Balance Cost with Growth in a Shifting Talent Market -
Article 8 mins
How Companies are Mitigating Rising Medical Costs -
Article 10 mins
How Data and Analytics Can Optimize HR Programs
Insights for HR
Explore our hand-picked insights for human resources professionals.
-
Article 7 mins
COVID-19 has Permanently Changed the Way We Think About Wellbeing -
Article 7 mins
DE&I in Benefits Plans: A Global Perspective -
Article 10 mins
How Data and Analytics Can Optimize HR Programs -
Article 9 mins
Why HR Leaders Must Help Drive Cyber Security Agenda -
Article 7 mins
Case Study: The LPGA Unlocks Talent Potential with Data -
Article 11 mins
Navigating the New EU Directive on Pay Transparency -
Article 4 mins
How to Design Better Talent Assessment to Promote DE&I -
Article 6 mins
Training and Transforming Managers for the Future of Work -
Article 7 mins
Rethinking Your Total Rewards Programs During Mergers and Acquisitions -
Article 14 mins
Building a Resilient Workforce That Steers Organizational Success | An Outlook Across Industries
Workforce
Our Workforce Collection provides access to the latest insights from Aon’s Human Capital team on topics ranging from health and benefits, retirement and talent practices. You can reach out to our team at any time to learn how we can help address emerging workforce challenges.
-
Report 14 mins
A Workforce in Transition Prepares to Meet a Host of Challenges -
Article 17 mins
3 Strategies to Improve Career Outcomes for Older Employees -
Article 7 mins
Companies Need a Global Benefits Identity in an Era of Cost Containment -
Article 8 mins
Driving Inclusion and Diversity with Employee Benefits -
Article 17 mins
Five Big Human Resources Trends to Watch in 2024 -
Article 8 mins
How Companies are Mitigating Rising Medical Costs -
Report 1 mins
The Global Medical Trend Rates Report 2025 -
Podcast 25 mins
On Aon’s Better Being Series: Physical Wellbeing and Resilience -
Article 9 mins
How the Right Employee Wellbeing Strategy Impacts Microstress and Burnout at Work -
Article 11 mins
Advancing Women’s Health and Equity Through Benefits and Support -
Podcast 18 mins
On Aon Podcast: Technology Impacting the Future of Health and Benefits -
Article 7 mins
How Collective Retirement Plans Help Support Financial Sustainability
Mergers and Acquisitions
Our Mergers and Acquisitions (M&A) collection gives you access to the latest insights from Aon's thought leaders to help dealmakers make better decisions. Explore our latest insights and reach out to the team at any time for assistance with transaction challenges and opportunities.
-
Article 8 mins
Exit Strategy Value Creation Opportunities Exist as Economic Pressures Persist -
Article 5 mins
Future Trends for Financial Sponsors: Secondary Transactions -
Article 7 mins
3 Ways to Unlock M&A Value in a Challenging Credit Environment -
Article 7 mins
Rethinking Your Total Rewards Programs During Mergers and Acquisitions -
Article 9 mins
Organizational Design and Talent Planning are Key to M&A Success -
Article 7 mins
An Ever-Complex Global Tax Environment Requires Strong M&A Risk Solutions -
Article 6 mins
Project Management for HR: The Secret Behind a Successful M&A Deal -
Article 9 mins
Cultural Alignment Planning Drives M&A Success -
Report 1 mins
A Guide to Maximizing Value in Post-Merger Integrations -
Report 2 mins
The ABC's of Private Equity M&A: Deal Flow Impacts of Al, Big Tech and Climate Change -
Article 11 mins
The Silver Lining on M&A Deal Clouds: M&A Insurance Insights from 2023
Navigating Volatility
How do businesses navigate their way through new forms of volatility and make decisions that protect and grow their organizations?
Parametric Insurance
Our Parametric Insurance Collection provides ways your organization can benefit from this simple, straightforward and fast-paying risk transfer solution. Reach out to learn how we can help you make better decisions to manage your catastrophe exposures and near-term volatility.
-
Article 10 mins
How Public Entities and Businesses Can Use Parametric for Emergency Funding -
Article 6 mins
Parametric Insurance: A Complement to Traditional Property Coverage -
Article 8 mins
Using Parametric Insurance to Match Capital to Climate Risk -
Article 6 mins
Using Parametric Insurance to Close the Earthquake Protection Gap -
Article 5 mins
How Technology Enhancements are Boosting Parametric
Pay Transparency and Equity
Our Pay Transparency and Equity collection gives you access to the latest insights from Aon's human capital team on topics ranging from pay equity to diversity, equity and inclusion. Contact us to learn how we can help your organization address these issues.
-
Article 10 mins
How Financial Institutions can Prepare for Pay Transparency Legislation -
Article 8 mins
Pay Transparency Can Lead to Better Equity Across Benefits -
Article 12 mins
Understanding and Preparing for the Rise in Pay Transparency -
Podcast 14 mins
On Aon Podcast: Understanding Pay Transparency Regulations -
Article 11 mins
Navigating the New EU Directive on Pay Transparency -
Article 7 mins
To Disclose Pay or Not? How Companies are Approaching the Pay Transparency Movement -
Podcast 19 mins
On Aon Podcast: Better Being Series Dives into Women’s Health -
Article 11 mins
Advancing Women’s Health and Equity Through Benefits and Support -
Article 8 mins
Driving Inclusion and Diversity with Employee Benefits -
Article 7 mins
Belonging at Work: How Employers can Strengthen DE&I -
Article 7 mins
DE&I in Benefits Plans: A Global Perspective -
Podcast 16 mins
On Aon Podcast: Approach to DE&I in the Workplace
Property Risk Management
Forecasters are predicting an extremely active 2024 Atlantic hurricane season. Take measures to build resilience to mitigate risk for hurricane-prone properties.
-
Article 8 mins
Florida Hurricanes Not Expected to Adversely Affect Property Market -
Article 10 mins
Build Resilience for an Extremely Active Atlantic Hurricane Season -
Article 6 mins
Four Steps to Develop Strong Property Risk Coverage in a Hardening Market -
Podcast 16 mins
On Aon Podcast: Navigating and Preparing for Catastrophes -
Article 6 mins
Parametric Insurance: A Complement to Traditional Property Coverage -
Article 6 mins
Navigating Climate Risk Using Multiple Models and Data Sets -
Article 5 mins
Rising Losses From Severe Convection Storms Mostly Explained by Exposure Growth -
Article 6 mins
Using Parametric Insurance to Close the Earthquake Protection Gap
Technology
Our Technology Collection provides access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities of technology. Reach out to the team to learn how we can help you use technology to make better decisions for the future.
-
Article 15 mins
How Artificial Intelligence is Transforming Human Resources and the Workforce -
Report 18 mins
Evolving Technologies Are Driving Firms to Harness Opportunities and Defend Against Threats -
Alert 3 mins
Better Decisions Brief: Perspectives on the CrowdStrike Outage -
Article 12 mins
5 Ways Artificial Intelligence can Boost Claims Management -
Article 6 mins
Artificial Intelligence and the Next Frontier for Financial Institutions -
Article 10 mins
Mitigating Insider Threats: Your Worst Cyber Threats Could be Coming from Inside -
Article 6 mins
8 Steps Toward Building Better Resilience Against Rising Ransomware Attacks -
Article 9 mins
Overcoming the Reputational Cost of Cyber Attacks: The 10-Day Plan -
Article 9 mins
Why HR Leaders Must Help Drive Cyber Security Agenda -
Article 5 mins
How Technology Enhancements are Boosting Parametric -
Article 9 mins
How to Futureproof Data and Analytics Capabilities for Reinsurers
Top 10 Global Risks
Trade, technology, weather and workforce stability are the central forces in today’s risk landscape.
-
Article 7 mins
Cyber Attack or Data Breach -
Article 4 mins
Business Interruption -
Article 4 mins
Economic Slowdown or Slow Recovery -
Article 5 mins
Failure to Attract or Retain Top Talent -
Article 5 mins
Regulatory or Legislative Changes -
Article 4 mins
Supply Chain or Distribution Failure -
Article 6 mins
Commodity Price Risk or Scarcity of Materials -
Article 4 mins
Damage to Brand or Reputation -
Article 5 mins
Failure to Innovate or Meet Customer Needs -
Article 4 mins
Increasing Competition -
Report 3 mins
Business Decision Maker Survey
Trade
Our Trade Collection gives you access to the latest insights from Aon's thought leaders on navigating the evolving risks and opportunities for international business. Reach out to our team to understand how to make better decisions around macro trends and why they matter to businesses.
-
Article 8 mins
The Evolving Threat of Cargo Theft: 5 Key Mitigation Strategies -
Report 3 mins
Global Risk Management Survey -
Report 15 mins
Wide-Ranging Trade Issues Confront Global Businesses on Multiple Fronts -
Article 6 mins
Four Steps to Develop Strong Property Risk Coverage in a Hardening Market -
Article 14 mins
Cutting Supply Chains: How to Achieve More Reward with Less Risk -
Article 9 mins
Driving Private Equity Value Creation Through Credit Solutions -
Article 7 mins
4 Steps to Help Take Advantage of a Buyer-Friendly Directors' & Officers' Market -
Article 9 mins
Managing Reputational Risks in Global Supply Chains -
Article 6 mins
How an Outsourced Chief Investment Officer Can Help Improve Governance and Manage Complexity -
Article 8 mins
Decarbonizing Your Business: Finding the Right Insurance and Strategy -
Article 8 mins
Reputation Analytics as a Leading Indicator of ESG Risk
Weather
With a changing climate, organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Our Weather Collection provides you with critical insights to be prepared.
-
Article 8 mins
Florida Hurricanes Not Expected to Adversely Affect Property Market -
Report 16 mins
Climate Analytics Unlock Capital to Protect People and Property -
Report 3 mins
Climate and Catastrophe Insight -
Article 10 mins
How Public Entities and Businesses Can Use Parametric for Emergency Funding -
Podcast 12 mins
On Aon Podcast: Tackling Climate Risk to Build Economic Resilience -
Article 8 mins
Understanding Freeze Risk in a Changing Climate -
Podcast 9 mins
On Aon Podcast: Climate Science Through Academic Collaboration -
Article 6 mins
How Companies Are Using Climate Modeling to Improve Risk Decisions -
Podcast 7 mins
On Aon Insights: Climate and Supply Chain -
Article 8 mins
Using Parametric Insurance to Match Capital to Climate Risk -
Article 9 mins
How the Construction Industry is Navigating Climate Change -
Article 9 mins
Record Heatwaves: Protecting Employee Health and Safety
Workforce Resilience
Our Workforce Resilience collection gives you access to the latest insights from Aon's Human Capital team. You can reach out to the team at any time for questions about how we can assess gaps and help build a more resilience workforce.
-
Article 7 mins
Using Data to Close Workforce Gaps in Financial Institutions -
Article 5 mins
Using Data to Close Workforce Gaps in Retail Companies -
Article 7 mins
Using Data to Close Workforce Gaps in Technology Companies -
Article 5 mins
Using Data to Close Workforce Gaps in Manufacturing Companies -
Article 6 mins
Using Data to Close Workforce Gaps in Life Sciences Companies -
Report 4 mins
Measure Workforce Resilience for Better Business Outcomes -
Podcast 18 mins
On Aon Podcast: Methodology to Predict Employee Performance for the LPGA -
Article 6 mins
Training and Transforming Managers for the Future of Work -
Article 14 mins
Building a Resilient Workforce That Steers Organizational Success | An Outlook Across Industries
More Like This
View All-
Article 8 mins
Florida Hurricanes Not Expected to Adversely Affect Property Market
Hurricanes Helene and Milton insured loss estimates are expected to fall between $34 billion and $54 billion. Healthy, well-capitalized insurance and reinsurance markets are positioned to absorb those losses.
-
Article 17 mins
Q3 2024: Global Insurance Market Overview
Buyer-friendly conditions continued across much of the global insurance market in Q3, painting a largely positive picture as we head into year-end renewals.
-
Article 10 mins
Why It’s Key to Conduct Cyber Due Diligence in Financial Services During Mergers and Acquisitions
A successful M&A strategy relies on due diligence across financial, legal, human capital, technology, cyber security and intellectual property risks. As cyber threats become more complex, robust cyber due diligence in private equity and acquisitions is increasingly necessary.
Ready to Explore Further?
Subscribe to Aon
Sign up to receive updates on the latest events, insights, news and more from our team.