Skill-based training helps employees master specific abilities that benefit both parties. Here’s how this powerful approach can boost your workforce and why it’s important for your business.
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Employers now rethink hiring, focusing on skills over degrees because challenges like COVID-19, rising costs, and employee shortages show that skills matter more than just having a degree.
Big names like Boeing, Walmart, and IBM hire based on skills, opening doors for many who were once overlooked. Many companies also invest in their current employees with skill-based training, helping them grow, learn new abilities, and get promoted.
In this article, we’ll explain why skill-based training is important and look at the pros and cons of this approach. Let’s start by explaining what skill-based training actually is.
Statistics suggest that around 70% of learning and development professionals can’t bridge the skills gap in their organizations. If you feel the same, you’re not alone.
The work environment keeps changing, so equipping employees with the right skills is no longer optional—it’s necessary. This is where skill-based learning comes in. Unlike traditional training which often misses the mark, skill-based learning flips the approach.
It’s also called competency-based learning because it focuses on building the specific skills employees need to do their jobs well.
Instead of a one-size-fits-all method, skill-based training customizes learning according to the employee’s needs and strengths, closing skill gaps and boosting performance. It also makes employees more motivated and confident.
That’s why LMS for corporate training, such as Coursebox AI has become so popular recently. In fact, over 80% of organizations use LMS because they help streamline the whole process making training easier for companies and employees.
Many companies and schools use skill-based training to help people keep up with new technology and industry changes. Let’s look at some skill-based training examples.
AT&T noticed that many employees were losing their skills because of fast-changing tech, so the company started a big reskilling program. They offered online courses, worked with universities, and created in-house training to focus on important skills like cybersecurity, digital networking, and data science.
This helped AT&T cut down on hiring from outside because trained employees could move into new tech roles. It also kept workers more engaged and gave them better chances to grow in their careers.
Amazon plans to spend over $1.2 billion to train 300,000 employees by 2025.
The program includes the Amazon Technical Academy for those wanting to switch to software engineering and Machine Learning University for tech workers who want to dive into machine learning.
This helps employees gain new skills for better roles inside Amazon or even elsewhere in the tech industry. Early feedback has been positive, with many employees getting better jobs with higher pay.
Apprenticeships mix classroom learning with hands-on work experience, giving students the chance to learn skills on the job. For example, the Maryland Apprenticeship and Training Program pairs students with local employers for work-based learning, starting in their junior or senior year, to get real-world experience in different fields.
Students learn by doing and can earn money while training, making it easier to step straight into their chosen careers.
Simulation training uses virtual reality (VR) and augmented reality (AR) to create realistic learning environments. This is great for areas like healthcare, where trainees can safely practice skills without any real risk. For example, nursing students can use VR to practice patient care in a simulated setting.
eLearning offers flexible online courses that let people learn at their own pace. Interactive eLearning software like Coursebox AI helps organizations create engaging lessons to teach both technical skills and job-ready skills like communication and teamwork.
Virtual trainers mimic real equipment, letting students practice without the actual hardware. It’s like a video game for learning real-life tasks, giving students the chance to repeat actions and get instant feedback.
This method builds confidence and helps students get comfortable with tools they’ll use in the workplace.
Project-based learning (PBL) lets students learn by working on real-world projects. Programs like IGNITE include various projects where students can solve problems, design solutions, and build prototypes, teaching them how to think creatively and work as a team.
Mentoring pairs experienced individuals with beginners to share advice, skills, and tips. This setup helps new learners gain confidence and real-world insights while giving more advanced students a chance to teach what they know.
Skill-based training coupled with the best practices for corporate training help people grow both personally and professionally. To be more specific, when employees learn practical skills, their confidence, job satisfaction, and resourcefulness increase.
Here’s how skill-based training can empower your workplace exactly:
Now that we know how skill-based training can benefit your workplace, let’s look closely at some of the pros of skill-based training:
Skill-based training is much more interactive than traditional lectures. It often includes microlearning, hands-on activities, simulations, and games, making learning more fun and practical.
That’s why employees learned five times more material using online learning methods than using traditional ones.
This powerful approach, especially when paired with AI tools for personalized learning in corporate training, helps employees see how new skills apply to their daily work and makes it easier for them to remember what they've learned.
Gallup says 87% of millennials consider career development important for staying with a company. Companies like SAS attract and keep talented workers by offering skill-based training, which helps reduce turnover and keeps employees happy.
Training in specific skills helps employees work more efficiently. For example, a team trained in agile methods can handle projects better and get things done faster, improving overall work quality.
Research shows that 72% of companies see better performance when they focus on continuous learning. For instance, a sales team trained in negotiation skills can close more deals and increase revenue.
Having a range of skills lets employees adapt to new roles or switch fields more easily. For example, a graphic designer trained in user experience (UX) can transition smoothly to a new role. Companies that support internal mobility also keep their employees longer.
Like all things in life, skill-based training isn’t perfect. Let’s discuss some of the cons of skill-based training.
It’s tricky to figure out which skills to learn, especially since industry demands change quickly. Keeping training programs up-to-date is a constant challenge.
Off-the-shelf training often doesn’t fit specific needs. Companies may need to create custom content to address unique skill gaps. Involving experts and choosing the right LMS can help ensure the training is practical and useful.
Traditional tests might not show if someone is truly ready for their job. However, companies can easily measure how well employees have learned new skills by using learning analytics tools.
Using new skills at work can be challenging. Factors like company culture and lack of support can make it hard to apply what’s been learned.
Setting up and maintaining skill-based training programs takes a lot of time, money, and resources, which can be a big hurdle for some organizations.
The bright side? A big chunk of skill-based training takes place online, which takes less time for employees to complete, hence reducing training costs.
Some employees, especially older ones, might resist new skill-based training methods and prefer traditional learning. Fortunately, you can motivate adult learners to embrace continuous skill development by using proven tactics for corporate learning success.
Skill-based learning is a great way to help your employees grow and succeed at work. By focusing on practical skills, employees can keep up with changes and do their jobs better. If you don’t know where to start with skill-based training, follow these steps:
Remember that effective skills-based learning is a continuous process. You should regularly update your programs based on feedback for better results.
