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'Skills-first' transformation helps firms boost revenue: Report

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Reskilling and upskilling are not only turning out to be effective talent retention tools but also helping companies boost revenue, according to a joint report by EY and iMocha.

According to the report, more than 50% of the enterprises which participated in the global survey are undergoing “skills-first transformation” (SFT) and clocking two times growth in revenue compared with their peers. The report was released on Tuesday.

Companies adopting SFT saw 61% of human resources department leaders reporting better outcomes for talent retention in 2023 and 58% reporting a boost in employee performance.

The report is based on primary research via interviews and surveys with 560 HR leaders and employees across BFSI (banking, financial services and insurance), information technology, telecom and other industries across the US, EMEA (Europe, the Middle East and Africa), India, Southeast Asia and the Australia-New Zealand region.

More than half of the companies that participated in the survey are embracing SFT, as per the report.

IMocha, an AI-powered skills intelligence cloud platform, and professional services firm EY, launched their second report on Skills transformation, titled ‘The skills-first transformation: A new approach to unlocking talent potential’.

With “skills-first” approach being widely advocated by industry leaders and analysts, the research was focused on finding the prevalence of SFT among global companies and industry sectors, according to the report.

The survey reveals that 56% of companies worldwide are embracing SFT, with US-based enterprises leading this trend at 74%.

According to the report, more than half of the global enterprises, particularly in telecom (66%), technology (66%) and IT (58%), have adopted the “skills-first” approach.

SFT adopters exhibited 2x higher revenue growth in the last two to three years compared with non-adopters. Notably, four out of five employees prefer companies with a skills-first approach, directly influencing enterprise success.

“Employees want to upskill and reskill to stay relevant; they are eager to showcase their skills and be recognised for them," said Amit Mishra, CEO and founder of iMocha.

SFT companies prioritise skills development and talent retention, resulting in 61% HR leaders reporting better outcomes for talent retention and 58% reporting boost in employee performance. In contrast, non-SFT companies lag in focusing on future skills and simplifying internal talent mobility.

With a substantial 46% of HR leaders focusing on SFT, India has a crucial role to play in this transformative journey, according to the report.
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