Grads of Life and Morningstar Sustainalytics, a leading ESG research and analytics firm, invite corporate and investment leaders to discuss the business case for skills-first human capital management.
Author:
Kayla Murray | Associate Director, Thought Leadership & Content | LinkedIn
Institutional investors and companies from various sectors joined Grads of Life and Morningstar Sustainalytics for an invitation-only roundtable discussion to gain a deeper understanding of skills-first practices and evaluating their Return on Investment (ROI). During the session, participants engaged with case studies highlighting the work of Blackstone’s Career Pathways program and Cleveland Clinic’s talent transformation to illustrate the tangible benefits companies have experienced from shifting to a skills-first approach. A lively Q&A discussion followed, touching on issues that are top of mind to investors and ESG leaders. Several themes and learnings emerged from this conversation that may be useful to investors and companies as they evaluate their role in this space:
- Pilot first, then scale. In some organizations, a pilot program addressing isolated priority practices may serve as a necessary proof of concept to catalyze future skills-first initiatives. With proven results, many companies find it easier to build energy and momentum toward scaling larger efforts.
- Take a holistic approach. To reap the maximum benefit of a skills-first talent management approach, total organizational transformation should extend practices beyond hiring to supporting, developing, and promoting talent. Creating a through-line across every stage of the employee life cycle ensures a seamless journey for new hires and reduces the likelihood of attrition.
- Work smarter, not harder. Organizational shifts can take time. The companies who have experienced the most success use the tools at their disposal. Change leaders can and should take advantage of existing technology solutions (like Applicant Tracking Systems/Human Resources Information Systems) that are rapidly developing to meet the needs of businesses or choose to create internal systems (like a talent or skills marketplace). Instead of starting a data strategy from scratch, companies can look to industry standards like Grads of Life’s Impact Measurement Framework. This framework can help to track the efficacy of skills-first practice changes and share outcomes for employees and the business to boards or investors interested in the ROI of a skills-first approach.
Drawing from his experience implementing and scaling a skills-first approach, Marcus Felder shared his take on the importance of prioritizing people.
“I am on the Talent & Organizational Performance team in Portfolio Operations, which is the value creation team at the firm. Within Career Pathways and across the broader talent team we view talent as a value creator. High potential employees are vital to creating strong businesses.”- Marcus Felder, Principal and Head of Strategic Hiring Programs, Portfolio Operations, Blackstone
The future of work is evolving before our eyes. Today’s talent landscape has shifted significantly and people are demanding that companies raise the bar to attract, retain, and advance top talent. Businesses know that they need to learn and adapt to the needs of a modern workforce to remain competitive into the future and a skills-first approach provides a roadmap to ensure an equitable talent journey for employees, a compelling business case for companies, and long-term social benefits for society.
