As the nature of work continues to evolve rapidly due to technological advancements and shifting market demands, the conversation around the future of work often centers on the importance of reskilling. However, current research on human resources management and re-skilling the workforce (Griffiths, 2020, Hagel III et al., 2019, Smith, 2023) suggests that while reskilling is important, fostering human capabilities should take precedence. This perspective on the future of work allows us to understand that it is in the nature of human capabilities to endure the changing world of work, while the more transient nature of skills means that skills are bound to become obsolete. Let’s have a closer look at the differences between capabilities and skills.
Defining Skills and Capabilities
Skills are specific, teachable abilities or knowledge sets required to perform certain tasks. These can range from technical skills like coding and data analysis to soft skills such as communication and teamwork. Skills are typically acquired through learning and training and are often directly tied to particular jobs, functions or tasks. However, in a rapidly changing work environment, the relevance of specific skills can diminish quickly as new technologies and processes emerge (Hagel III et al., 2019). What then? Enter capabilities.
Capabilities, in contrast to skills, are broader, more enduring qualities and traits that enable individuals to navigate a variety of situations and challenges. At its core, they are human skills. These include critical thinking, creativity, emotional intelligence, and adaptability. Unlike skills, capabilities are not confined to specific tasks or roles but are universally applicable across different frameworks, markets and industries. Capabilities form the foundation for continuous learning and personal growth, furthermore allowing individuals to acquire new skills and adapt to changing environments (Hagel III et al., 2019, Smith, 2023).
4 Reasons why Capabilities endure the changing World of Work
- Fostering the adaptability to change: The modern work environment is characterized by constant change. Capabilities such as critical thinking and problem-solving equip individuals to adapt to new challenges and uncertainties. These qualities enable employees to pivot and thrive even as their specific skill sets become outdated.
- Encouraging lifelong learning: A focus on capabilities fosters a mindset of continuous learning and growth. Individuals who are curious, motivated, and capable of self-directed learning can acquire new skills as required, ensuring they remain relevant and competitive in the job market.
- Advancing innovation and creativity: The demand for innovation in the workplace is increasing. Capabilities like creativity and strategic thinking empower individuals to generate original ideas and drive progress. These traits are essential for fostering an innovative culture within organizations and companies.
- Cultivating emotional intelligence and collaboration: As workplaces become more collaborative, the importance of emotional intelligence and interpersonal skills cannot be overstated. Capabilities that enhance teamwork, leadership, and communication contribute to a harmonious and productive work environment.
As we look towards the future of work, it is evident that capabilities provide a stable foundation for sustained success. Skills will always remain an important part of the future of work, however, by prioritizing the development of capabilities, we can create a workforce that is resilient, innovative, and adaptable, ready to meet the challenges and opportunities of an unpredictable future. Moreover, this means that investing in capabilities is about more than preparing for the next job; it’s about building a dynamic and versatile workforce capable of thriving in any situation, role or work environment (Hagel III et al., 2019).
Sources
Griffiths, M. (2020, November 4). Human Capability Management: Driving organizational performance through talent development. Deloitte United States. https://www2.deloitte.com/us/en/blog/human-capital-blog/2020/human-capability-management.html
Hagel III, J., Wooll, M., & Seely Brown, J. (2019, August 30). Skills change, but capabilities endure. Deloitte. Insights. https://www2.deloitte.com/us/en/insights/focus/technology-and-the-future-of-work/future-of-work-human-capabilities.html
Smith, C. (2023, May 15). Enduring Skills and the Future of Work. Inside Higher Ed. https://www.insidehighered.com/opinion/career-advice/carpe-careers/2023/05/15/enduring-skills-and-future-work
