Top 7 Ways to Create a Skill Repository in 2024

The World Economic Forum states that around 35% of workers' skills will be disrupted between 2023 and 2027. This highlights the need for companies to reevaluate and enhance their talent management strategies.

Another World Economic Forum predicts that by 2025, technology could eliminate 85 million jobs while creating 97 million new roles requiring different skill sets. Thus, companies must develop an effective skills repository to adapt quickly to changing market demands and effectively bridge emerging skill gaps.

A skill repository is needed to handle this change. By matching the skills of existing employees with the expectations of the new industry, firms can close skill gaps and increase productivity.

In this article, we’ll examine the essential steps to building a skill repository that empowers organizations to stay competitive in a rapidly evolving market.

What is Skill Repository?

A skill repository is an organizational database that stores in-depth skill records of employees. It is a vital asset that enhances workforce skills, supports strategic HR planning, and aligns talent with organizational goals and market needs.

The repository contains an inventory of skills arranged for ease of use. It consists of different skill categories, levels of mastery, and weightings, aiding in clear role expectations. Skill repository assists in workforce planning, development, and succession planning by providing a framework for skill assessment and gap analysis.

Having a skills database can help organizations identify skills gaps, enabling them to manage talent and future needs effectively.

Why Is A Skills Repository Important For An Organization?

An IBM report mentions that skills have a half-life of five years, implying that corporations need to enhance their employees' skills to stay competitive consistently.

A skills repository is essential in assisting companies to monitor and control the constantly changing skill environment. Here’s why it is important:

• Strategic Workforce Planning: It enables precise alignment of employee skills with organizational goals. This alignment is crucial for efficient resource allocation and maximizing productivity.
• Talent Development: A skill repository identifies current skills and gaps and aids in crafting targeted development programs. This proactive approach ensures employees grow with company needs.
• Enhanced Recruitment: Clear insight into existing skills allows HR to pinpoint exactly what competencies are missing. This improves the quality of new hires and reduces time-to-fill rates.  
• Supports Succession Planning: Insight into employee strengths and weaknesses enables HR to identify the right talent for leadership roles. This ensures that succession planning is aligned with long-term business requirements.
• Enhances Employee Engagement: When employees see a career growth trajectory and feel that the company values their abilities, morale and engagement increase.

7 Ways to Create a Skill Repository

Creating an effective skills repository requires a systematic approach where each foundational step adds strategic value. Here’s a detailed guide on the seven essential steps to creating a skills repository:

1. Define Objectives and Goals

Before establishing a skill repository, it's crucial to define its purpose:

• Strategic Alignment: Ensure the repository supports organizational goals and workforce planning.
• Skill Identification: Identify essential skills required across different roles and levels within the company.
• Talent Management: Use the repository to support hiring, training, and development strategies.

Setting clear objectives will guide the structure and utility of the repository, aligning it with business needs.

2. Gather Existing Data

Start by collecting available information:

• Employee Records: Review current employee skills, qualifications, and job descriptions.
• Previous Assessments: Incorporate data from performance reviews and training evaluations.
• Industry Standards: Align with industry benchmarks to ensure relevance and competitiveness.

This data provides a foundation for understanding the current skillset and identifying gaps.

3. Create a Skill Taxonomy

Organizing skills into a structured taxonomy enhances clarity and usability:

• Skill Categories: Group skills into categories such as technical, managerial, and interpersonal.
• Levels of Expertise: Define proficiency levels for each skill to facilitate growth tracking.
• Relevance Marking: Indicate the importance of each skill to various roles and functions.

A well-defined taxonomy helps navigate the skill repository effectively.

4. Develop Data Collection Tools

Efficient data collection is key for a comprehensive repository:

• Surveys and Interviews: Engage with employees to gather self-reported skills and interests.
• Observational Assessments: Use job performance and role-specific tasks to evaluate skills.
• Technology Integration: Employ skills assessment software to automate data collection where possible.

Choosing the right tools ensures the accuracy and comprehensiveness of the skills data.

Struggling with skill assessment accuracy? Our tools can help improve the accuracy of the skill assessments. Explore our skill assessment solutions.

5. Implement a Skill Repository Platform

Selecting the right platform is crucial for managing the repository:

• Software Selection: Choose a platform that supports customization and scalability.
• Integration: Ensure the platform integrates smoothly with existing HRIS and talent management tools.
• User Accessibility: Provide easy access for employees and managers to view and update their skills.

A powerful platform simplifies management and enhances the functionality of the skill repository.

6. Conduct Skill Gap Analysis

Regular skill gap analysis is essential for maintaining a competitive edge through proactive talent development and strategic planning. By comparing current skills with the ones needed in the future, companies can address gaps.

Deloitte reports that 94% of business leaders require their workforce to acquire skills in their jobs to keep up with ever-rising competition. Using a skill repository for regular analysis ensures that organizations stay prepared.

• Current vs. Future Needs: Compare existing skills against those needed for future strategic goals.
• Skills Inventory: Use a comprehensive skills inventory to monitor business demands and identify skills that the company needs to fill any gaps.
• Training Opportunities: Identify areas where training or hiring is needed to fill skill shortages.

Do you need to Conduct an Effective Skill Gap Analysis? Our targeted resources will help you analyze skills data effectively to identify gaps and create actionable insights. Discover skill gap analysis techniques.

7. Maintain and Update the Repository

Keeping the repository up to date is essential:

• Regular Updates: Schedule periodic reviews to add new skills and update existing ones.
• Feedback Mechanism: Implement a system for ongoing feedback from managers to refine skill descriptions.
• Technology Upgrades: Stay updated with software enhancements to keep the repository effective and user-friendly.

Ongoing maintenance ensures the repository remains a relevant and valuable resource.

Role Of Skills Intelligence In Creating A Skill Repository

Skills intelligence plays a pivotal role in creating and maintaining a skill repository. Here's how it integrates various elements to optimize talent management through iMocha's platform:

1. Skills Taxonomy: Establishes a structured classification of skills into relevant categories, helping in organizing skills based on type and relevance for easy access and manageability.
2. Skills Benchmarking: Evaluates skill levels in comparison to industry standards and best practices. This allows organizations to evaluate their position in relation to rivals and pinpoint areas that require enhancement.
3. Analysis of Skill Gap: Recognizes differences between existing skills and those necessary for reaching company goals. It offers practical advice to steer training schemes and hiring plans, guaranteeing that any skill deficiencies are handled efficiently.
4. Skills Analytics: Uses data-driven insights to assess the efficiency of skill management tactics. This helps predict future skill needs and adapt policies to meet changing business requirements.

iMocha's system uses AI-powered skills intelligence to improve this process, making it more effective by reducing human errors. It offers organizations the resources necessary to create a detailed and flexible skills framework with 5000 skill taxonomies across various industries and a library of 3000 skill assessments.

This framework meets present operational requirements and also foresees future trends, equipping organizations to tackle upcoming challenges effectively.

Conclusion

A skills repository is essential to keep an organization updated to meet industry standards so they have an edge over competitors.

Platforms like iMocha offer seamless skills management and integration with existing HR systems, which enhances the skills repository's usability and makes it invaluable for strategic workforce planning.

Explore Our Skills Intelligence Cloud. See how iMocha’s Skills Intelligence Cloud can further enhance talent management processes. Learn more about Skills Intelligence Cloud.

Schedule a demo with us today to create an effective skills repository!

FAQs

What are the key benefits of using a skills repository?

A skill repository enhances strategic HR planning by identifying and addressing skill gaps efficiently. It facilitates targeted employee development and streamlines recruitment to align skills with organizational needs.

How does a skills repository support workforce planning?

A skills repository provides insight into current skills and gaps, enabling talent development, succession planning, and internal mobility based on skill alignment. This enables proactive talent development and succession planning and assists in aligning workforce capabilities with future business strategies.

What should be included in employee profiles in a skills repository?

Employee profiles in a skills repository should contain detailed listings of current skills and proficiency levels, along with historical data on training and development outcomes. They should also include future skill development goals and potential career paths.