• 90 percent of organisations consider skills-related initiatives to be highly important
• 61 percent of organisations have implemented skills-based programs to address top talent priorities
• Career development is emerging as the biggest use case for skills-related initiatives

The study gathered input from over 135 organisations across APAC to identify common challenges businesses face in integrating skills into workforce decision-making, strategies, and whether organisations are beginning to prioritise skills over experience.

"As businesses face an increasingly dynamic environment, there is a strong need for relevant future-ready skills over traditional work experience to build a resilient and agile workforce," said Puneet Swani, head of Talent Solutions for APAC at Aon. "Organisations must prioritise skills development and leverage people analytics to improve HR and business outcomes. By doing so, they can foster a resilient and adaptable workforce ready to meet future challenges."

The survey found that the value of skills is critical for attracting and retaining talent, enhancing workforce agility and resilience, and building strong leaders. Almost 40 percent of organisations are at the critical stage of developing talent strategies and programs tailored around new and future skills. Furthermore, 68 percent of organisations have an articulated skills framework as the foundation for such practices. Overall, 44 percent of organisations are exploring technology tools, assessment platforms and external benchmarks for skills identification, but over half (56 percent) still depend on traditional methods such as job descriptions and manager surveys.

Top skills influencing talent practices include career development and mobility, learning and development, recruitment and selection, succession planning and workforce planning.

The study also found organisations are using skills information for employee career development, with nearly 40 percent of respondents already aligning skills with lateral role opportunities for colleagues. This strategy enhances employee experience and data shows it boosts candidate success rates. The survey expects within the next 12 - 24 months, around 45 percent of organisations will adopt the practice of aligning skills with lateral opportunities for colleagues.

However, the survey respondents have identified barriers in advancing the skills agenda in their organisations.

Maggie You, head of people advisory for APAC at Aon, said, "The top challenges for progressing with skills initiatives include limited budget and resources, measuring program effectiveness, and identifying relevant skills. To overcome these barriers, organisations must take small steps by starting with pilot programs, using objective assessments and clear KPIs, engaging business stakeholders, and aligning skills frameworks with job architecture and external benchmarks."

Aon's 2025 Skills Survey report can be found here.

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