{"id":129748,"date":"2025-06-03T08:00:23","date_gmt":"2025-06-03T12:00:23","guid":{"rendered":"https:\/\/trainingindustry.com\/?post_type=articles&#038;p=129748"},"modified":"2025-07-09T13:56:01","modified_gmt":"2025-07-09T17:56:01","slug":"skills-taxonomies-driving-targeted-skills-development-for-a-future-ready-workforce","status":"publish","type":"articles","link":"https:\/\/trainingindustry.com\/articles\/strategy-alignment-and-planning\/skills-taxonomies-driving-targeted-skills-development-for-a-future-ready-workforce\/","title":{"rendered":"Skills Taxonomies: Driving Targeted Skills Development for a Future-Ready Workforce"},"author":52,"featured_media":129757,"template":"","tags":[29612,3699,1387,35705,34455],"class_list":["post-129748","articles","type-articles","status-publish","has-post-thumbnail","hentry","tag-reskilling-and-upskilling","tag-skills-mapping","tag-talent-development","tag-trending-articles-june-2025","tag-trending-content","global_topic_tax-performance-management","global_topic_tax-strategy-alignment-and-planning"],"acf":{"sponsored":false,"gated":false,"gated_content_type":"","file_attachment":null,"gated_content":"","form_instruction_header":"To access the full article, please fill out the form below:","pardot_html_embed":"","author_override":true,"author_name":"Sarah Gallo, CPTM","author_image":123175,"author_bio":"Sarah Gallo, CPTM, is a senior editor at Training Industry, Inc., and co-host of\u00a0<a href=\"https:\/\/trainingindustry.com\/training-industry-podcast\/\" target=\"_blank\" rel=\"noopener\">The Business of Learning<\/a>, the Training Industry podcast.","excerpt":"Businesses are focusing on skills development to adapt to disruption. With 50% of workers in ongoing training, skills taxonomies help organizations stay future-ready amid changing skill demands.\r\n\r\n","main_content":"Businesses across industries are increasingly prioritizing skills development as a response to ongoing disruption. While change remains constant, learning and development (L&amp;D) efforts are helping organizations adapt and stay competitive.\r\n\r\nIn fact, The World Economic Forum\u2019s \u201c<a href=\"https:\/\/www.weforum.org\/publications\/the-future-of-jobs-report-2025\/in-full\/3-skills-outlook\/\" target=\"_blank\" rel=\"noopener\">Future of Jobs Report 2025<\/a>\u201d found that although employers still expect 39% of workers' core skills will shift by 2030, the pace of disruption is stabilizing \u2014 partly due to a stronger focus on continuous learning and reskilling. 50% of the workforce has now completed training as part of long-term learning strategies, up from 41% in 2023, the research found.\r\n\r\nAs organizations continue to prioritize skills development to stay future ready, let\u2019s consider how skills taxonomies can be part of the solution.\r\n<h2>What Is a Skills Taxonomy?<\/h2>\r\nA skills taxonomy is a useful tool that can help L&amp;D teams create clear role expectations, <a href=\"https:\/\/trainingindustry.com\/wiki\/strategy-alignment-and-planning\/strategic-alignment\/\" target=\"_blank\" rel=\"noopener\">align learning programs to business needs<\/a> and use consistent language across departments.\r\n\r\nLisa Paulson, manager of L&amp;D at Nesnah Ventures, describes a skills taxonomy as \u201ca hierarchy of skills that are needed for the organization to be able to realize its goals.\u201d\r\n\r\nSkills taxonomies can be broad in scope, outlining the skills required within a specific business function, or more granular, identifying the skills needed for individual job roles.\r\n\r\nNolan Hout, senior vice president of growth at Infopro Learning, defines skills taxonomies as \u201ca classification system of an agreed upon set of skills and definitions of those skills.\u201d\r\n\r\nUltimately, skills taxonomies are about ensuring the right people are in the right roles with the right skills to effectively contribute to the organization's goals and overarching mission, says Ajay Pangarkar, CEO and partner at CentralKnowledge, and co-author of \"Learning Metrics: How to Measure the Impact of Organizational Learning.\"\r\n\r\nIt\u2019s worth noting that although the term \u201cskills taxonomy\u201d may sound like a trendy buzzword, the concept behind it isn\u2019t new, Pangarkar says. Organizations have long been focused on identifying and applying the right skills at the right time to meet business goals. Terms like \u201cskills mapping,\u201d \u201c<a href=\"https:\/\/trainingindustry.com\/articles\/performance-management\/the-business-of-learning-episode-70-harnessing-the-power-of-competency-modeling\/\" target=\"_blank\" rel=\"noopener\">competency modeling<\/a>,\u201d \u201cskills inventory\u201d and \u201cskills matrix\u201d may differ slightly in definition, but they all serve a similar purpose of helping ensure the organization has the right skills in place to stay competitive.\r\n\r\nHere is an example of what a skills taxonomy might look like for a data scientist role:\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td style=\"border: 1px solid #000000;\" width=\"162\"><strong>Skill Category<\/strong><\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"204\"><strong>Subcategory<\/strong><\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"258\"><strong>Specific Skills<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"border: 1px solid #000000;\" width=\"162\">&nbsp;\r\n\r\nTechnical Skills<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"204\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Programming and scripting\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Data manipulation and analysis\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Machine learning\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 AI and deep learning\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Big data tools\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cloud platforms\r\n\r\n&nbsp;<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"258\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Python, R, SQL, Java\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Pandas, NumPy, Excel\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Regression, classification, clustering\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Neural networks, TensorFlow, PyTorch\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hadoop, Spark, Hive\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 AWS, Azure, Google Cloud\r\n\r\n&nbsp;<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"border: 1px solid #000000;\" width=\"162\">Analytical and Business Skills\r\n\r\n&nbsp;\r\n\r\n&nbsp;<\/td>\r\n<td width=\"204\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Mathematics and statistics\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Data visualization\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Experimentation\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Domain knowledge\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Problem-solving\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Communication\r\n\r\n&nbsp;<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"258\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Hypothesis testing, linear algebra, calculus\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tableau, Power BI\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A\/B testing\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Industry-specific expertise (e.g., retail, health care, finance, etc.)\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Root cause analysis, business case development\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Data storytelling, stakeholder presentations<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"border: 1px solid #000000;\" width=\"162\">Soft Skills<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"204\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Collaboration\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Critical thinking\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Adaptability<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"258\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cross-functional teamwork, Agile practices\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Decision-making, evaluating data integrity\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Learning new tools, navigating change<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"border: 1px solid #000000;\" width=\"162\">Ethics and Compliance Skills\r\n\r\n&nbsp;\r\n\r\n&nbsp;\r\n\r\n&nbsp;<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"204\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Data privacy\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Responsible AI<\/td>\r\n<td style=\"border: 1px solid #000000;\" width=\"258\">\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 GDPR, HIPAA, PII compliance\r\n\r\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bias mitigation<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n<h2>Building a Skills Taxonomy: 3 Tips for Success<\/h2>\r\nCreating a skills taxonomy can be challenging given how fast business needs are shifting. Consider these best practices to get started:\r\n<ol>\r\n \t<li><strong>Identify current and future skill needs. <\/strong><\/li>\r\n<\/ol>\r\nStart by identifying your organization\u2019s immediate skill needs (i.e., the skills required now to meet current business goals and deliver value to the customer or end user) and future skill needs (i.e., the skills the organization will need to be competitive one, three or five years from now), Pangarkar says.\r\n\r\nIdentifying future skill needs is especially important for businesses in industries marked by high rates of change. For example, Pangarkar explains, a tech company \u201cmay have the necessary skill set today to satisfy whoever's buying that technology or using that technology.\u201d However, \u201cWe know in a year or three years or five years, that technology is looking very different,\u201d and will require an evolved skill set.\r\n\r\nHere are a few ways to identify your organization\u2019s current and future skill needs:\r\n<ul>\r\n \t<li>Review current job roles and performance data to identify gaps or strengths.<\/li>\r\n \t<li>Conduct interviews with both stakeholders and employees to gather a well-rounded view of skill needs. Talk with business leaders to understand priorities and where the organization is headed, and with employees to uncover their current challenges and perceived skills gaps. \u201cI think it's really important to get perspectives from each group,\u201d Paulson says.<\/li>\r\n \t<li>Analyze industry trends and benchmarks to anticipate potential shifts.<\/li>\r\n \t<li>Partner with human resources (HR) to explore succession plans, upcoming technology integrations or business expansions that may require new capabilities.<\/li>\r\n<\/ul>\r\n<ol start=\"2\">\r\n \t<li><strong>Continuously update and refine. <\/strong><\/li>\r\n<\/ol>\r\nFor a skills taxonomy to be effective, Paulson says, \u201cIt needs to be updated and maintained\u201d and \u201cshow future skills that are going to be needed, because business changes so quickly.\u201d\r\n\r\nAfter identifying your immediate and long-term skill needs, build in regular touchpoints to revisit and update your skills taxonomies. This will help maintain alignment with shifting business strategies, market conditions and technological advancements.\r\n<ol start=\"3\">\r\n \t<li><strong>Leverage AI and tech-based solutions. <\/strong><\/li>\r\n<\/ol>\r\nIt\u2019s possible to identify current and future skills manually, using the above techniques to get started. However, technology \u2014 specifically, <a href=\"https:\/\/trainingindustry.com\/wiki\/artificial-intelligence\/ai-in-training\/\">artificial intelligence<\/a> (AI)-powered tools \u2014 \u201ccan get you there faster,\u201d Hout says. Solutions from providers like Fuel50, Cornerstone, Infopro Learning and others can help identify skill strengths and gaps based on existing workforce and performance data, job roles and responsibilities, and industry trends.\r\n\r\nThat said, no AI tool is perfect. For example, Hout explains, you may encounter \u201cfalse positives,\u201d or skills that are technically related but not relevant in your business context. Still, that doesn\u2019t mean AI isn\u2019t worth leveraging. Even if the output isn\u2019t perfect, it can give you a solid foundation to refine and build upon.\r\n\r\nBrenda Sugrue, learning industry advisor and former chief learning officer at EY, emphasized this idea in a recent \u201cInsights to Impact\u201d <a href=\"https:\/\/business.udemy.com\/spotlight\/insight-to-impact-series?mkt_tok=MjczLUNLUS0wNTMAAAGaMVihArdVdDqopjV-850AIAtx3oC8EjM0HX1wxnkdInfeY7AE0fahkAy20rBn2qpWoksgKu2kKtWsSGU47Np4jnPv-bJNYEs-A0IdtfhBpqKfsVU\">video series<\/a> by Udemy Business, sharing, \u201cSpeed and flexibility are more important than precision when skills gaps and needs are so great and so fast changing.\u201d Sugrue adds that she\u2019s learned, \u201cparticularly from skills management systems, that AI-powered systems really get better with time and use. So I'm actually much more comfortable now to let definitions and estimates of skills emerge from multiple sources of data that the technology and the AI can pull together.\"\r\n<h2>Greater Skills Visibility: A Win-Win<\/h2>\r\nWhen employees understand the skills required for new roles, they\u2019re better positioned to grow and advance within the organization. This visibility supports internal mobility by aligning employee development with business needs \u2014 a win-win for both employees and the organization.\r\n\r\nHout explains, \u201cThere's a huge cost to bringing in [someone] new. If you're able to move them laterally, it's the proverbial win-win, right?\u201d It\u2019s a win for the company because it retains talent, avoids the cost and time of onboarding someone new, and fills a key role. And it\u2019s a win for the employee, who is \u201cnow better able to leverage their skills in a job that is better suited for them.\u201d\r\n\r\nBy creating targeted skills taxonomies, L&amp;D leaders can help build an adaptable workforce that\u2019s prepared for the future \u2014 and whatever changes lie ahead.","full_width":false,"content_band":[{"acf_fc_layout":"social_callout","blockquote":"When employees understand the skills required for new roles, they\u2019re better positioned to grow and advance within the organization. "},{"acf_fc_layout":"content_area","wysiwyg":"[hubspot type=\"form\" portal=\"47185625\" id=\"31abc617-027a-47ea-a085-16e2fd6a2d32\" version=\"v4\"]<script> $(document).ready(function() {iFrameResize({},'[data-form-id=\"31abc617-027a-47ea-a085-16e2fd6a2d32\"] iframe') }); <\/script>"}],"tice_sponsors":"","custom_dfp_keywords":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.8 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Driving Skills Development with Taxonomies<\/title>\n<meta name=\"description\" content=\"Learn how skills taxonomies support targeted development and internal mobility to build a future-ready workforce in a fast-changing business landscape.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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