Dictionary of 50 Key Concepts in Skills-Based Organization

Definition: Organizational approach that structures HR processes around skills rather than degrees or seniority.

What you need to know: Skills-Based Organization (SBO) represents a paradigm shift in talent management. Decisions regarding recruitment, mobility, learning, and compensation are based on the assessment of actual skills rather than titles or years of experience. This model promotes transparency, improves the match between talent and organizational needs, and reduces selection bias. However, SBO requires strong governance, the integration of skill taxonomies and ontologies, and the use of skills intelligence platforms to maintain reliable and up-to-date data.

• Related concepts: Skills-Based Organization Strategy, Internal Mobility, Internal Taxonomy.

• NexaRH Resources: Skills Roadmap or SBO

• NexaRH Resources: Article: Skills-based management is making a comeback with a bang. Author: Jean-Baptiste Audrerie.

• External reference: Deloitte Insights, The skills-based organization: A new operating model for work and the workforce, (2022).

Definition: An integrated roadmap linking skills, organizational structure, culture and technology to build a sustainable SBO.

What you need to know: An effective SBO strategy combines standardization (repositories, taxonomies) and flexibility (dynamic jobs, internal markets). It must align with the company's priorities (growth, innovation, employee experience, sustainable performance).

The SBO strategy articulates four dimensions:

1. culture and governance (observatory and anticipation of professions and skills, leadership, trust, ethics),

2. talent management practices (mobility, reskilling, continuous learning).

3. job and skills architecture (role clarification, distinctive capabilities),

4. HR technologies and Skills Intelligence platforms

• Related concepts: Skills-Based Organization, Skills Architecture, Skills Governance.

• NexaRH Resources: Design of operational model of HR functions

• External reference: David G. Collings, John McMackin / ScienceDirect, Skills-first HR: a key enabler of future global strategy, (2025) .

Definition: A recruitment method that evaluates candidates on their demonstrable skills rather than their qualifications or experience.

What you need to know: Competency-based recruiting significantly expands the candidate pool by eliminating traditional filters like degrees. Organizations assess actual skills through tests, role-playing scenarios, and structured interviews. This method promotes inclusion, reduces bias, and improves the quality of hires. However, it does require redesigning job descriptions, training recruiters, and incorporating sophisticated assessment tools. Companies that adopt this approach report better matching of profiles to needs and reduced turnover costs.

• Related concepts: Job Posting, Job Description, Skill Signals.

• NexaRH Resources: Efficiency Diagnosis of HR Departments (Talent Acquisition)

• External references: Harvard Business Review, 2023. https://hbr.org/2023/11/the-case-for-skills-based-hiring | IGI Global, Skills Based Hiring in Contemporary Job Market Using Artificial Intelligence, (2025)

Définition : Approche de formation qui personnalise les parcours d’apprentissage selon les compétences actuelles et les objectifs de développement des employés.

Ce qu’il faut savoir : Contrairement aux programmes standards, l’apprentissage basé sur les compétences utilise l’IA pour identifier les écarts de compétences et recommander des formations ciblées. Les parcours deviennent adaptatifs, tenant compte du rythme, des préférences et des objectifs de chaque apprenant. Ce modèle augmente les taux de complétion, réduit le temps nécessaire pour atteindre la maîtrise et améliore la pertinence des contenus. Dans une SBO, il aligne directement le développement des employés avec les besoins stratégiques et opérationnels.

• Concepts liés : Formation de précision (Precision Training), Apprentissage dans le flux de travail (Learning in the Flow of Work), Évaluation multidimensionnelle des compétences (Multi-dimensional Skills Assessment).

• Ressources NexaRH : Conférence sur les Compétences Émergentes et l'IA

• Référence externe : MIT Sloan Management Review, 2022. https://sloanreview.mit.edu/article/designing-learning-for-a-skills-based-future/

Definition: A succession planning process that identifies potential successors based on their skills rather than their hierarchical position.

What you need to know: Skills-based succession improves organizational resilience by focusing on actual capabilities rather than status. The use of predictive analytics and matching algorithms helps identify hidden talent and build individualized development plans. This approach reduces reliance on external recruitment and increases the diversity of internal candidates for key positions. However, it requires a robust skills architecture, reliable metrics, and strong managerial commitment.

• Related concepts: Career Path, Skills Governance, Inventory of Organizational Capabilities.

• NexaRH Resources: Which intelligent skills management solution for your SB strategy?

• External references: Queens University, Developing a Talent Management Strategy for Succession Planning, (2024) .

Definition: HR planning method that aligns the strategic needs of the organization with the skills available in the workforce.

What you need to know: Competency-based planning replaces traditional models focused solely on positions or headcount (FTE). It involves projecting future needs in terms of tasks and skills, then comparing these projections with the actual supply of internal talent. This approach makes it possible to anticipate critical gaps and guide investments in recruitment, training, reskilling, and internal mobility. Companies that adopt it improve their resilience in the face of rapid transformations (technology, market, demographics) and reduce the costs associated with resource misalignment. It thus becomes a strategic tool for competitiveness and operational continuity.

• Related concepts: Skills-Based Organization, Skills Risk Management , GEPP (Strategic Workforce and Skills Planning).

• NexaRH Resources: https://www.nexarh.com/post/conference-quelle-feuille-de-route-ia-pour-les-rh

• External reference: World Economic Forum, The Future of Jobs Report (2023) .

• External reference: McKinsey & Company, The critical role of strategic workforce planning in the age of AI, (2025) .

Definition: A performance appraisal system that incorporates the development and application of skills as central evaluation criteria.

What you need to know: Performance appraisal is evolving toward a competency-based approach, where individual goals are defined in line with the development and application of critical organizational skills. Managers establish measurable growth targets, supported by digital tracking tools. This approach strengthens employee engagement, increases clarity on their progression paths, and values continuous capacity growth. However, it requires a cultural transformation and an overhaul of HR processes so that appraisals are no longer perceived solely as annual ratings, but as levers for continuous development.

• Related concepts: Personal Development Plan, Skills Governance, Multi-dimensional Skills Assessment.

• NexaRH Resources: https://www.nexarh.com/post/bâtir-sa-feuille-de-route-compétences

• External reference: Harvard Business Review, 2015. https://hbr.org/2015/04/reinventing-performance-management

Definition: Dynamic process of connecting talents with priority projects and missions based on their skills.

What you need to know: Agile skills matching relies on the use of artificial intelligence algorithms and internal marketplace platforms. It allows for the rapid allocation of the right talent to critical initiatives, reducing assignment times and administrative friction. This approach increases organizational agility, optimizes skills utilization, and boosts employee motivation, as employees access projects that match their real aspirations and skills. Companies that adopt this practice observe better retention, accelerated innovation, and greater efficiency in their human resources management.

• Related concepts: Internal Mobility, Talent Opportunity Marketplace, Dynamic Skills Intelligence.

• NexaRH Resources: https://www.nexarh.com/post/cartographie-des-solutions-hr-tech-canada-et-québec

• External reference: Deloitte, 2021. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2021/resilient-organization-workforce-strategy.html

Definition: Ability to analyze and break down tasks into specific skills to optimize allocation, training, and automation.

What you need to know: Task intelligence enables the shift from static job logic to a granular and dynamic view of work. Each task is associated with the necessary skills, facilitating automation, workflow optimization, and the personalization of training paths. By linking tasks to skills, organizations can better plan their workforce, identify critical gaps, and support mobility paths. This concept is central to the implementation of modern job architectures and the integration of artificial intelligence within HR systems. It is an essential prerequisite for developing precision strategies such as targeted training or agile matching.

• Related concepts: Precision Training, Job Architecture, Skills Inference.

• NexaRH Resources: Jobs, Positions and Skills Architecture

• External reference: Beamery, Task Intelligence: A New Era Of Workforce Planning Powered By AI, (2025) .

Definition: Structured catalog of collective capabilities that differentiate the organization and support its strategy.

What you need to know: Unlike an individual skills inventory, the organizational capabilities inventory highlights the company's distinctive collective strengths: innovation, operational excellence, customer relations, sustainability, etc. This framework serves as a strategic compass to guide training investments, technology choices, and workforce planning. By linking each capability to underlying skills, it allows HR leaders (CHROs) and decision-makers to prioritize key initiatives and strengthen the organization's resilience. When used well, it is a major lever for aligning talent strategy with business strategy.

• Related concepts: Skills Ecosystem, Skills-Based Organization Strategy, Talent Intelligence.

• NexaRH Resources:

• External reference: MIT Sloan Management Review, The new capabilities for talent driven organization (2021) .

• External reference: PMC (PubMed Central), Reviewing the relationship between organizational performance, dynamic capabilities and strategic behavior, (2022) .

Definition: Real-time system that updates and enriches skill profiles using artificial intelligence (AI) and operational data.

What you need to know: Dynamic skills intelligence relies on platforms capable of continuously ingesting data from projects, HR systems, LMS (Learning Management Systems), collaborative tools, and external signals (market, certifications, industry trends). Unlike static inventories, it guarantees a living and up-to-date skills map, essential for internal mobility, strategic planning, and the detection of emerging skills. It directly feeds talent marketplaces and improves the relevance of HR decisions. Organizations that adopt it increase their agility and reduce the risk of talent obsolescence.

• Related concepts: Talent Intelligence, Emerging Skills, Skills Governance.

• NexaRH Resources: https://www.nexarh.com/post/ingénierie-du-contexte-simple-prompt-ia-verticalisée

• External reference: Josh Bersin, Enterprise Talent Intelligence Arrives, Disrupting The HR Tech Market, (2024) .

Definition: Using data analytics and AI to optimize talent management decisions.

What you need to know: Talent intelligence combines HR data, operational data, and external information (market, engagement, performance) to generate strategic recommendations. It helps predict future needs, reduce bias in decision-making, and optimize human resource allocation. By integrating AI and predictive analytics, it transforms recruitment, development, retention, and planning processes. Companies that master talent intelligence significantly improve their decision-making effectiveness and reduce the costs associated with management errors.

• Related concepts: Dynamic Skills Intelligence, Inventory of Organizational Capabilities, Multi-dimensional Skills Assessment.

• NexaRH Resources: Mapping of intelligent skills management solutions or skills intelligent Platform (free download)

• External reference: 365Talents, The guide to understanding how Skills-Based Organizations will thrive in 2025, (2025) .

• External reference: World Economic Forum. What is 'skills intelligence' and how will it lead to economic resilience? (2025) .

Definition: Targeted training approach that directly links educational content to the skills required by tasks and roles.

What you need to know: Precision training differs from traditional training catalogs by offering targeted paths tailored to a specific skill gap. It relies on granular task intelligence and AI to recommend the most relevant content. This model maximizes ROI by reducing training time and increasing employee relevance. Organizations that adopt precision training see accelerated upskilling and reskilling, improved internal mobility, and greater efficiency in talent development.

• Related concepts: Task Intelligence, Skills-Based Learning, Reskilling.

• NexaRH Resources: Why career and internal mobility management remains the fifth wheel of the HR carriage. Author Jean-Baptiste Audrerie.

• External reference: Springer (E Watz, P Neubauer, R Shires, J May), Precision Learning Through Data Intelligence, (2023) .

Definition: Measurable evidence that validates and updates an employee's skills profile.

What you need to know: Skills indicators include concrete elements such as certifications, completed projects, performance reviews, 360° feedback, or contributions in digital environments (GitHub, LinkedIn, LMS). They help keep skills profiles up to date and strengthen the reliability of talent management systems. In an SBO, they act as essential “sensors” to feed AI platforms and talent marketplaces. Their use improves the transparency of HR decisions and strengthens the credibility of development paths.

• Related concepts: Multi-dimensional Skills Assessment, Self-Declaration, Skills Suggestion

• NexaRH Resources: https://www.nexarh.com/post/guide-pratique-de-gouvernance-ia-pour-les-crho-et-drh

• External reference: MIT Sloan Management Review, Skill Signals: Data-Driven Career Progression in the Digital Age, (2021) .

• External reference: Marc Piopiunik, Guido Schwerdt, Lisa Simon, Ludger Woessmann, Skills, signals, and employability: An experimental investigation, (2020) .

Definition: Assessment method combining multiple sources to measure an individual's skills.

What you need to know: Multidimensional skills assessment leverages different sources—self-assessment, managerial evaluations, peer feedback, performance data, certifications, and AI analytics—to obtain a comprehensive and reliable view of skills. This approach reduces single-method bias and increases profile accuracy. It is essential for powering robust SBO systems, including talent marketplaces and strategic planning. It also promotes the identification of transferable and emerging skills, strengthening organizational agility.

• Related concepts: Skill Signals, Talent Intelligence, Skills Governance.

• NexaRH Resources: Jobs, Positions and Skills Architecture

• External reference: Deloitte, Skills-based Organization (2022).