How hiring top talent is transforming in a skills-based economy

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The rapid evolution of technology, particularly the rise of AI and automation, is fueling a seismic shift towards a skills-based economy. As recently defined by the World Economic Forum, a skills-based economy is where hiring top talent focuses on the skills required to perform a job rather than on formal qualifications or degrees. 

The latest reports from professional development giants Coursera and Udemy highlight the growing demand for skills-based competencies, including specialisms in AI, cybersecurity, data literacy, digital marketing and leadership. This new tendency underscores the urgency for individuals and companies to adapt to this radical technological leap.

As part of the leadership team at Outvise, I’ve observed how the increasing dominance of the skills-based economy is transforming the talent landscape. Companies seek more specialised expertise, while professionals recognise the need to continuously upskill and reskill to remain competitive. In this dynamic environment, hiring top talent in the most relevant roles is paramount for success.

Here, I’ll provide an in-a-nutshell look at the trends identified in the Coursera and Udemy reports, discuss their implications for both freelancers and companies, and demonstrate how Outvise can help bridge the gap between talent and opportunity in the skills-based economy.

The perks and pitfalls of a skills-based economy

Many professionals hear the words “paradigm shift” and feel a certain dread; however, the paradigm shift that the skills-based economy represents shouldn’t be met with trepidation. In fact, there are a wealth of advantages. For companies, it fosters agility, improves talent mobility, expands access to a broader talent pool, and enhances cost efficiency. 

Conversely, individuals benefit from increased growth opportunities, greater flexibility and autonomy, and recognition based on skills and experience rather than just formal qualifications. The skills-based economy, therefore, represents a workplace revolution that, while challenging, has the potential to create a more dynamic, adaptable and inclusive workforce.

While brimming with promise, the transition to a skills-based economy is not without its hurdles. The Udemy report underscores the difficulty many organisations face in effectively assessing and validating their teams’ skills, hindering their ability to identify and address crucial skill gaps. The report also highlights the ‘complexity’ and ‘ever-changing’ nature of the skills landscape, making it challenging for companies to keep up with the skills their workforce needs to remain competitive.

Furthermore, shifting to a skills-based approach requires a significant investment in learning and development, as well as a cultural transformation that prioritises this continuous learning. For example, while the rise of AI and automation offers tremendous opportunities, it raises concerns about the need for workers to acquire new skills to remain employable or risk job displacement. 

Therefore, the skills-based economy presents a complex landscape where companies and individuals must navigate exciting possibilities and novel concepts. Let’s look in more detail at the trending fields and their implications for companies and workers alike.

What skills are the skills of the future?

The Coursera and Udemy reports paint a vivid picture of a constantly evolving skills landscape driven by the relentless march of technology. For instance, the Coursera report reveals that a staggering 80% of employers struggle to find skilled talent, emphasising the widening skills gap. I see these trends not just as data points but as the driving forces behind the talent strategies of tomorrow.

You will need to have been living under a rock not to know that the rise of generative AI and automation will be a technological revolution unlike any we have ever seen. According to Goldman Sachs, generative AI has the potential to at least partially automate as many as 300 million jobs. McKinsey data chimes with this reality, estimating that 30% of current work hours in the US economy could be automated by 2030.

However, history teaches us that work is constantly evolving. As certain types of jobs disappear, new ones emerge. The projected 23% growth in data analyst job openings in the US far surpasses the average job growth rate, highlighting a pronounced need in this field. Similarly, India’s remarkable 30.1% growth in data science and analytics jobs within a single year further emphasises the booming demand for hiring top talent with analytical skills. Coursera and Udemy reinforce the significance of this paradigm shift, with AI-related areas like Reinforcement Learning and Bayesian Networks emerging as the most in-demand skills. 

It’s clear that AI is not just on the horizon; it’s here and transforming how we work. Concurrently, the growing reliance on technology has made cybersecurity more critical than ever. The reports highlight a surge in demand for skills in System Security, Computer Security Incident Management, and Cyberattack Mitigation. The message is clear: protecting digital assets is no longer optional; it’s a business imperative.

In this data-driven era, understanding and communicating data is paramount. The demand for Data Visualization skills is soaring as businesses seek professionals who can turn raw data into actionable insights. As the digital landscape continues to evolve, Search Engine Optimization and E-Commerce skills are essential for companies to reach and engage customers effectively.

These trends underscore the dynamic nature of the job market and the importance of continuous learning and professional development. The future belongs to those who can adapt, upskill and embrace the opportunities this new skills landscape presents. Indeed, those who can broker these relationships between businesses and highly skilled talent will also play a vital role.

How companies should adapt to this new paradigm

The skills-based economy is not just a buzzword; it’s a reality reshaping how companies operate. The Udemy report reveals a striking disconnect: while most executives recognise the value of hiring top talent via a skills-based approach, far fewer have successfully implemented it. Deloitte found that while 9 out of 10 executives are looking to use skills to define work, deploy talent, and manage careers, only 1 in 5 are adopting a skills-based approach to a meaningful extent. The ‘why’ is clear, but the ‘how’ remains elusive for many.

The challenge lies in navigating the complexities of transitioning to a skills-based model. It requires a fundamental shift in mindset, processes and technology. Companies need to identify and assess their skills, the skills they need, and the gaps in between. They need to create a continuous learning and development culture, providing employees with opportunities to upskill and reskill. Finally, they must leverage technology to streamline these processes and gain valuable insights into their skills landscape.

The drive to upskill and reskill employees remains a cornerstone of the skills-based economy, but the urgency has intensified. Indeed, the need to outpace competitors and harness the transformative power of AI is pushing companies to adopt a more robust skills strategy. However, the Harvard Business Review cautions that more than upskilling alone is needed. The coming decades will likely see millions of workers needing to completely reinvent their skill sets, transitioning into entirely new occupations. This poses a significant societal challenge, requiring workers to learn and apply new skills in unfamiliar contexts.

This skills-based economy isn’t just about re-training; it’s also about tapping into knowledge efficiently and hiring top talent on a flexible basis. Freelance talent, in particular, will be pivotal to optimising the workforce and reducing overhead costs associated with upskilling, reskilling and new hires. Outvise, for example, empowers companies to build this adaptable freelance workforce by hiring top talent ready to tackle any project, no matter the size or complexity.

Although it’ll require a shift in mindset, the good news is that the rewards of embracing a skills-based approach are significant. Companies that can successfully make this transition will be better equipped to adapt to change, innovate and attract and retain top talent. They’ll be able to build agile workforces that can respond quickly to new challenges and opportunities. And they’ll be able to leverage the full potential of their employees, fostering a culture of growth and development.

Which skill is best for future freelancing?

The skills-based economy demands adaptability and a commitment to lifelong learning, but it also presents a golden opportunity. The reports from Coursera and Udemy highlight the need for freelancers to continuously upskill and reskill to stay ahead of the curve. For instance, the rise of AI and automation necessitates freelancers acquiring new skills to leverage these technologies effectively. The growing importance of cybersecurity and data literacy further emphasises the need for freelancer skills to expand to stay abreast of the latest trends.

To thrive in this dynamic environment, freelancers must be proactive in showcasing their skills and building a strong portfolio demonstrating their expertise. Adapting to the changing nature of work and embracing flexibility is also crucial. The Udemy report notes that demand for AI-related skills has grown 60% year over year, indicating a strong desire among professionals to evolve and remain relevant in the job market.

So, which skill is best for future freelancing? The prominence of Power BI in the Coursera report underscores the increasing importance of data visualisation and business intelligence tools. Similarly, the demand for skills in Cloud Computing (Linux, Systems Design, Software Architecture) and Web Development (React, Django) suggests that these areas will continue to be lucrative for freelancers. Equally, the ability to work with Big Data and understand the applications and implications of AI will be increasingly valuable for freelancers across various industries.

The report also emphasises the rising importance of customer experience skills, such as Customer Success and Customer Relationship Management. Meanwhile, the report reflects a particular back-to-basics element among these technological transformations, as E-Commerce skills remain the top business skill trend. As businesses strive to retain customers and enhance their overall experience, freelancers with expertise in these areas will be in high demand.

Nonetheless, the true answer lies at the intersection of your passions, the market demand, and your ability to adapt. The reports highlight several high-growth areas, but the ‘best’ skill ultimately depends on your unique strengths and interests. The key is to be adaptable, continuously learn and evolve, and position yourself at the forefront of the skills-based economy.

How Outvise is bridging the skills gap 

The challenges and opportunities presented by the skills-based economy require a new approach to hiring top talent. The traditional hiring model, with its emphasis on full-time employment and lengthy onboarding processes, often struggles to keep pace with the rapid evolution of skills and the demand for specialised expertise. 

Outvise can be a valuable partner in this journey, providing freelancers with a platform to showcase their skills, connect with potential clients, and find fulfilling opportunities that align with their expertise and aspirations. By embracing the principles of the skills-based economy and leveraging platforms like Outvise, freelancers can position themselves for success in the ever-evolving world of work.

Meanwhile, our platform connects companies with a curated network of top-tier freelance talent, providing on-demand access to the specialised skills required for any project. We understand that hiring top talent is paramount, which is why we rigorously vet every freelancer on our platform, ensuring that businesses can confidently engage professionals with proven track records.

Moreover, we recognise that time is of the essence in today’s fast-paced business environment. Outvise streamlines the hiring process, enabling companies to quickly and efficiently find and engage the right talent for their projects. The result is a win-win situation: companies gain access to the specialised skills they need when they need them, while freelancers gain access to fulfilling opportunities that leverage their expertise.

In the skills-based economy, hiring top talent at the right time is a competitive advantage. Outvise can help companies and experts connect to make transformative projects happen.