Enterprises adopting 'Skills-First' approach clocking two-fold revenue growth compared to peer group: Report

New Delhi: The enterprises adopting "skills-first" approach not only report significant improvement in terms of employee retention and performance optimization, but also exhibit higher revenue growth, according to a report by iMocha and EY India.

The report by iMocha, the leading AI-powered Skills Intelligence Cloud platform, along with EY, the leading professional services organization, noted that over half of global enterprises, particularly in telecom (66 per cent), technology (66 per cent), and IT (58 per cent), have adopted skills-first approach.

The Skills-First Transformation: A new approach to unlocking talent potential" report is based on primary research via interviews and surveys with 560 HR leaders and employees across BFSI, IT, Tech, Telecom, and other industries across the US, EMEA, India, SEA and ANZ regions.

"The operational landscape, especially in tech-driven sectors, has become extremely dynamic, and only a Skills-First Transformation is expected to keep enterprises steadily moving on the path to sustainable growth. Employees want to upskill and reskill to stay relevant; they are eager to showcase their skills and be recognized for them," Amit Mishra, CEO and Founder of iMocha said.

Notably, 4 out of 5 employees prefer companies with a skills-first approach, directly influencing enterprise success. However, only 44 per cent feel sufficiently supported in upskilling, despite 69 per cent recognizing changes in required skillsets, the report said.

"India boasts one of the top tech talent markets in the world, at par with Europe and the US. With a substantial 46 per cent of HR leaders focusing on SFT, the country has a crucial role to play in this transformative journey," said Preeti Anand, Partner, Business Consulting at EY India.

While the US leads in Skills-First Transformation, there is significant traction in other regions: APAC (73 per cent), EMEA (58 per cent), and India (46 per cent).

As businesses worldwide grapple with the ever-evolving operational landscape, the report signals a call to action for organizations to embrace Skills-First Transformation or risk falling behind.

"With compelling evidence of enhanced employee satisfaction, improved business performance, and remarkable revenue growth, the report serves as a guide for enterprises interested to adopt a "skills-first" approach and to stay relevant in a competitive environment," the report said.

Regarding rewards and recognition, 80 per cent favor a skills-based system over prevailing practices, the report added.