Skills are the new currency of work. Yet we measure and reward managers and employees for delivering results, not for building the skills that ensure long-term success. No wonder we have a skills gap.
While organizations pour resources into fostering innovation and meeting quarterly targets, they often overlook a critical driver of success: the continuous development of their workforce’s skills. Traditional approaches—sporadic training programs and annual performance reviews—fail to keep pace with the relentless speed of change. It is time to embed learning into the fabric of work itself.
This is not just about providing employees with access to courses; it is about creating a culture where skill-building is constant, personal, and seamlessly integrated into daily workflows. And measured. Measured in the performance reviews of the managers. Because at the heart of this transformation, or lack thereof, are managers, who must evolve from task supervisors to skill architects.
And currently they are not.
A critical gap exists between what organizations think they are delivering in terms of employee development and how employees perceive it. Despite 77% of executives agreeing that their organization should help workers stay employable, only 5% strongly believe they’re investing enough to keep pace with change, according to a Deloitte survey. The Betterworks Skills Fitness Report 2024 shows a similar disconnect: 70% of organizations claim to measure skills in performance reviews, yet most do so only once or twice a year—far too infrequently for today’s fast-moving workplace.
The way we measure and reward in organizations is through performance management. Which is why performance management needs to move from a backward-looking evaluation process to a forward-thinking tool. Currently, it remains rooted in assessing output when it should be including what employees are learning and how they are growing.
Skills are not just a nice-to-have; they are critical to organizational survival. This is not just about retaining talent, it is about unlocking potential. Companies that prioritize skill-building experience tangible benefits, from increased retention to greater agility and innovation. With the half-life of many skills now just a handful of years, organizations that ignore ongoing development are working with a depreciating asset base.
The Betterworks report found that 98% of HR leaders and managers believe integrating verified skills data into performance management could improve internal mobility. And Deloitte’s survey again shows the gap when 89% of executives say skills are becoming important in deploying talent while at the same time 59% of workers say their organization values traditional job experience and degrees over skills and potential.
Managers today are tasked with delivering business results, keeping teams motivated, and ensuring employees grow and develop the skills they will need for the future. But this broad responsibility often results in a focus on immediate deliverables at the expense of long-term growth. The Betterworks report underscores this gap: While 75% of employees see their managers as key to their development, only 56% feel supported in reaching their skills goals.
Perhaps the solution lies in separating these roles entirely. By creating dedicated development managers focused exclusively on coaching, skills assessments, and tailored growth plans, organizations can ensure employees receive the consistent support they need for both work and development.
Development managers would work alongside traditional managers, who would remain focused on achieving business objectives. This division of labor not only relieves the strain on task-oriented managers but also positions employee development as a strategic priority, rather than an afterthought.
Development managers would ensure that skills are not an afterthought but a priority. By mapping, measuring, and closing skills gaps, they would equip employees with the capabilities needed for today’s challenges and tomorrow’s opportunities. Traditional managers, freed from the impossible task of balancing work oversight with deep people development, could focus on achieving immediate business goals. Together, these roles would form a dynamic partnership—where operational success and talent growth reinforce each other.
This is not just about simplifying management structures. It is about creating a system where employees do not just keep up but stay ahead. Organizations that invest in skills today will shape the economy of tomorrow.
— Nirit Cohen