The skills-based organization: A new model for talent planning in India
Indian enterprises are discovering that the skills they need for tomorrow don’t fully match the roles they’re hiring today; rapid technological advancements are creating skill gaps faster than traditional hiring can fill them. At the same time, talent increasingly looks for workplaces that invest in their growth and adapt to emerging trends, making skills development a competitive advantage in attraction and retention. Skills-based workforce planning hires and upskills people based on what they can do and learn, not just fill positions. It creates the flexibility to close skill gaps quickly and stay ahead, something traditional role-based approaches struggle to deliver.
The limitations of traditional HR models in India
Traditional competency-based HR models were built for stability, not agility. They assume that skills remain constant and fit neatly into predefined categories, but they don’t keep up with the specific, fast-emerging capabilities that businesses actually need. It makes effective workforce planning difficult; organizations forecast headcount based on historical job requirements while completely missing new skills as they develop in real-time.
The skills-based operating model: A 4-step framework
1. Establish a dynamic skills taxonomy
A skills taxonomy is a structured way to define and organize skills across your organization, keeping skills updated as business needs change. By mapping skills in one place, HR and business leaders can clearly identify which capabilities already exist and where there are gaps. It makes it easier to use data to match people to roles, projects and development opportunities.
Traditionally, the same skills are described inconsistently across the organization. Similar roles across different teams list the same skills in different ways, while valuable capabilities sit hidden in performance reviews and strategies. It’s difficult to build a reliable view of workforce skills and plan confidently for the future when information is spread across multiple systems.
Dynamic taxonomies create a common language for skills across the business. When everyone is working from the same definitions, teams can collaborate more effectively on workforce planning, learning and mobility. Leaders can make better decisions about hiring and developing the right people, building the skills the organization needs over time.
2. Real-time skill inventory
Typically, employees and HR teams are asked to self-report the skills they need to do their work, but this creates problems. People underestimate the skills they use every day and have limited visibility of future capabilities. As a result, the data is unreliable and difficult for businesses to use with confidence.
AI and modern tools can change this by building dynamic, evidence-based capability profiles. By analyzing data from recruitment and development activities and future strategies, organizations can move beyond self-declared skills to a more precise view of necessary skills. The shift from self-declared to verified skills transforms workforce planning from opinion-based to evidence-based, giving both organizations and employees a clearer, more honest picture of capabilities and growth opportunities.
3. Gap analysis and planning
Skills data offers organizations a clearer picture of not just how many people they have, but what people are actually capable of. With a consistent view of skills across roles and teams, HR managers can identify where capacity is constrained, which skills are over-allocated and where work may be at risk due to gaps.
Once these gaps are visible, skills data can guide decisions on how best to close them. Organizations can compare the time and cost of upskilling current employees, redeploying talent or hiring externally, allowing them to plan rather than react. By linking capability, time and cost, skills data turns capacity planning into a strategic tool that helps organizations invest in the right people to meet business needs.
4. Activating skills in workflows
Skills are critical to consider in everyday HR processes from recruitment to development. When skills are embedded in these processes, organizations can identify the right candidates for open roles, uncover opportunities for employees to grow or move within the business and tailor learning programs to the capabilities that matter most. It creates a workforce that is agile, capable and ready to meet both current and future business needs.
Workday Skills Cloud: The intelligent foundation for Indian talent leaders
Imagine knowing exactly what skills you have today, and what you’ll need tomorrow. Workday Skills Cloud makes it easy to map real-time employee capabilities and connect them to external data and benchmarks. With this data, you can spot gaps before they become an issue and make smarter decisions about hiring and upskilling talent. You can build a workforce that’s agile, capable and ready for whatever comes next.
Skills-based talent mobility
In India’s fast-moving talent market, retaining skilled employees and preserving institutional knowledge is a constant challenge. Workday Skills Cloud helps employees grow by connecting them with internal career and networking opportunities that match their skills. By analyzing employee skill profiles, the platform delivers personalised development experiences and job recommendations, helping each person grow in ways that fit them.
Planning future capacity
Understanding the skills your organisation has today is just the start; the real challenge is knowing what you’ll need tomorrow. Workday Adaptive Planning gives HR teams and leaders a complete view of skill requirements. By linking HR and financial data, it can model a wide range of scenarios, from business restructures to adapting to regulatory changes, showing how each choice impacts skills, capacity and cost. Leaders can plan proactively and make smart hiring and investment decisions, getting you where you need to be.
Building agility and retention through skills
Building a workforce with the right skills allows Indian enterprises to respond quickly to changing business needs. Employees are more likely to stay with clear growth paths and meaningful opportunities within the business. Ultimately, investing in skills today helps future-proof the Indian workforce, ensuring organizations stay competitive and employees remain engaged and prepared for tomorrow’s challenges.
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