The skills-oriented labor market: what is it and what's in it for you?

The media is increasingly talking about the importance of a skills-based job market. But what exactly does that mean? And what does it mean for you as an employee or employer? In this article Puls summarizes the main points for you.

Why the traditional labor market is failing

We see that the labor market is becoming increasingly flexible: workers are changing jobs more often, either by necessity or out of their own desire. We also see that jobs are disappearing due to technological developments, but also that new jobs are being created.

From diplomas and work experience to 'skills'

The traditional labor market is not set up for flexibility. Within the current labor market, diplomas and comparable work experience are often used by employers as the main selection tool to find the right personnel. Because the labor market is changing so rapidly, it can become difficult to find suitable personnel within certain fields in this way. Think of installing solar panels or heat pumps, selling and repairing electric bicycles, or programming a new app: you could not have obtained a specific diploma or gained comparable work experience for these 10 years ago. Focusing primarily on degrees and comparable work experience creates a mismatch in the job market.

Several solutions to this mismatch have been devised, such as retraining and upskilling. The most fundamental solution is a skills-oriented labor market. In a so-called "skills-oriented labor market," you match the skills, competencies and knowledge ("skills") that an employee has with the skills needed to perform the tasks successfully.

From functions to tasks

From the traditional job market, we are used to thinking in terms of functions. We look for "administrative assistants" who handle the incoming phone calls, manage the mailbox, provide answers to complicated technical questions and in between also keep the Excel sheets. As a human being, you cannot be an administrative jack-of-all-trades. You cannot be good at everything and you cannot be energized by everything. In a skills-based job market, we don't look at jobs, but at the tasks you perform. This allows employers to better match tasks to the talents, interests and abilities of their employees.

What does this mean for employers?

A skills-based job market could make it easier for employers to find suitable staff. Currently, when hiring new staff, employers primarily pay attention to whether the applicant has the right qualifications and comparable work experience. By dividing jobs into skills needed to perform those tasks successfully, you as an employer have a better chance of finding a suitable candidate. In fact, your search pool is enlarged by doing so.

What does this mean for employees?

For employees, a skills-based job market can make it easier to make a career switch. An employer will no longer select only on whether you have the right qualifications or work experience. You may be able to successfully reapply skills gained in previous jobs in a completely different field. Understanding your developed skills and the skills needed for the job you want to apply for is essential.

A skills-based system can also provide more opportunities for people distanced from the labor market. If employers have insight into what tasks there are within the organizations and what skills are needed for that, you can start to classify work differently. Task packages can then be put together based on the capabilities (for example, remaining workload, language skills or work experience) that the employee has. The tasks are then matched to the employee instead of the other way around.

Puls Provides insight into personal skills

Puls gives the employee insight into personal skills with various exercises and tests. In addition, an interest test not only allows us to look at occupations that suit the person, but also tasks that fit well. Finally, we also pay attention to presenting the skills properly to potential employers by practicing an Elevator pitch and preparing a competency-based resume.

Understanding developed skills and the skills needed for the position an employee wants to apply for is essential. Do you have employees looking to make a career switch? Or do you have job openings that you are unable to fill? If so, contact Puls. We would love to think with you.