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Skills-Based Organisations: Easier Said Than Done

25 juni 2026
David Echeverri

As organisations continue to navigate changing business needs, workforce planning has become increasingly focused on skills rather than job titles alone. The idea is simple: understand the capabilities within your workforce, identify gaps, and use those insights to make better decisions around hiring, development, and career growth. However, according to David Echeverri, Senior Consultant at SuccessDay, the reality is often more complex.

Based on his experience implementing Skills Cloud, David has seen organisations make the same mistakes, face similar challenges, and uncover surprising opportunities when adopting a skills-based approach.

The Biggest Mistake? Trying to Control Everything

One of the most common mistakes David sees is organisations trying to restrict and control skills management too much from the start. Many companies want every skill update to go through governance processes, approval flows, or manual validation. While oversight is important, David believes that overcomplicating the process can limit one of the biggest benefits of Skills Cloud: obtaining direct and up-to-date information from employees themselves.

“The biggest mistake organisations make is trying to restrict and limit how it works.”

Workday Skills Cloud was designed to continuously gather and enrich skills information. While organisations can still validate data where needed, the real value comes from creating an environment where skills data can evolve naturally over time. Rather than building a static skills inventory, successful organisations treat skills as a continuously evolving source of insight.

Skills Is Bigger Than Talent Management

Another challenge David frequently encounters is that organisations initially view Skills Cloud as a talent management feature. While skills are certainly relevant for talent processes, limiting the conversation to Talent often means missing a much bigger opportunity. “One of the biggest challenges is understanding that Skills goes beyond the talent area and becomes something truly cross-functional.”

Skills data can support recruiting, learning, workforce planning, internal mobility, career development, succession planning, and performance management. When organisations begin connecting these areas through a shared skills framework, the value of Skills Cloud increases significantly. According to David, the organisations that gain the most value are the ones that stop treating skills as an isolated HR initiative and start viewing it as an organisation-wide capability.

Skills Is Never Finished

Many organisations approach Skills Cloud as a project with a clear start and end date. David sees things differently. “Skills is a living area, and one that can be continuously fed with data.”

As organisations evolve, new skills emerge, business priorities shift, and employees continue to learn and develop. Skills data therefore requires ongoing attention and continuous refinement. This is where many organisations underestimate the long-term value of the platform. The objective is not simply to implement Skills Cloud. The objective is to create a sustainable ecosystem where skills data remains relevant and useful over time.

Turning Skills Into Business Value

One implementation in particular highlights what this can look like in practice. A client wanted to redesign its job architecture and establish a more objective way of understanding workforce capabilities. Rather than focusing solely on skills administration, they used Skills Cloud and Career Hub to create a clearer connection between roles, expectations, development opportunities, and career growth.

The result was a simplified job architecture that was easier for both employees and managers to understand. Employees gained greater clarity around:

  • what was expected of them in their current role
  • which skills they needed to develop
  • potential career paths within the organisation
  • the steps required to progress towards those opportunities

At the same time, HR gained better visibility into organisational strengths and skills gaps, allowing them to make more informed decisions around training, workforce planning, and external hiring. The organisation was also able to reduce its reliance on separate talent management solutions and integrations by consolidating more capabilities within the Workday ecosystem.

Most importantly, conversations shifted from assumptions to data-driven decisions.

You Probably Have More Data Than You Think

If David could give organisations one piece of advice before enabling Skills Cloud, it would be this:

“You already have far more information about your current talent ecosystem than you realise.”

Most organisations already possess valuable information through learning records, performance reviews, recruiting processes, job profiles, employee feedback, and everyday workforce interactions. The challenge is rarely the absence of data. The challenge is connecting that information in a meaningful way and making it accessible to the people who need it.

Skills Cloud helps organisations bring these fragmented data points together and transform them into actionable insights.

Looking Ahead

David expects skills management to become increasingly central to the entire HCM landscape over the coming years. Rather than existing as a standalone Talent feature, skills will continue to connect different stages of the employee lifecycle and help organisations make more informed workforce decisions.

At the same time, Workday AI will continue to improve how organisations identify, infer, and analyse workforce capabilities. “It will evolve into an HCM-centric feature, connecting all areas related to a worker’s lifecycle at work.” For organisations looking to improve workforce visibility, support employee growth, and make better talent decisions, the conversation around skills is only becoming more important.

The organisations that start building that foundation today will be in a much stronger position tomorrow. Because becoming a skills-based organisation is not about implementing a feature. It is about understanding the capabilities already present within your workforce and using that knowledge to make better business decisions.

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