Why the future of work needs skills-based hiring

Almost two in three organisations in Singapore agree that skills-based hiring promotes workplace productivity and innovation, according to a survey on skills readiness in the workforce.

Among those surveyed, more than half described digital skills as the most important trait to have in the future of work. The challenge is the time required to reskill or upskill current employees.

Transitioning to a skill-based approach in talent recruitment and development is fundamentally about time and preparation for the future, according to speakers at the panel session titled Embracing a Skill-Based Approach to Talent Recruitment and Development.

The session was part of the first day of GovInsider’s Festival of Innovation 2025, held on March 25-26.

The panel was centred on different strategies to overcome challenges in transitioning toward a skill-based approach and creating a conducive work environment for people to upgrade, learn, and contribute.

With the ever-growing influence of technology on the nature of work, traditional talent management is no longer enough.

Organisations are steadily prioritising skills and capabilities over credentials such as job titles or degrees, said moderator of the session, Workday’s Head of Value Realisation, Asia Pacific, Chetan Jotwani.

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Skills and competencies at the forefront

Job roles and skills required are changing in response to the needs of the public, as well as rapid technological and economic developments.

Social services, for instance, are going through a process of professionalisation, where skills and competencies are required by frontliners including social workers, counselors, or therapists, noted National Council of Social Service (NCSS), Director of Capability and People Strategy, Bruce Liew.

He mentioned that social services first started in the hands of well-intended people, driven by volunteers and those with a passion to serve. As the sector grew, a skills framework emerged.

“Beyond attitudes … we are starting to have structures when it comes to competency and training, not just to assess the level of competency, but also to make sure they [workers] do a better job and progress in the agencies they are in,” Liew added.

This competency-driven framework is something that Singapore’s Public Service Division’s Chief HR Officer and Advisor for Workforce Development, Low Peck Kem, further emphasised on in the panel.

“We want to reward, hire, and develop people based on their competencies,” she said, adding that this is the only way in which the public sector will be able to meet key performance indicators and provide meaningful services efficiently.

Empowering through technology

Central to the conversation was understanding how technology can be harnessed at the job level to enable better performance and efficiency.

In some roles, such as human resources (HR), technology has emerged as a major value-adding tool, said Liew.

Solutions like Workday's AI Illuminate leverage artificial intelligence (AI) informed by the organisation’s datasets to streamline mundane tasks like developing job descriptions and contracts, thus freeing up time for employees to focus on high-value tasks.

The platform supports not only HR teams but also employees at large to meet their needs in an efficient and effective way through the use of AI and contextual analytics, thus enabling them to use their skills to create higher value impact in their roles, said Jotwani.

While such technology enables employees to dedicate their time to work more optimally, digital transformation can affect different roles in various ways.

For this reason, it was important to adopt a bottom-up approach and adopt the perspectives of employees working on the ground, said the General Secretary for Amalgamated Union of Public Employees (AUPE), Sanjeev Kumar Tiwari.

“As things evolve, you’re expected to know what comes next. If you can’t cope, then you’re not a better performer.

“How can organisations provide the time and space for officers to keep up? Bearing in mind that each demographic will require different timelines when it comes to learning and adapting to new technologies,” Tiwari noted.

Particularly in the public sector where most work focuses on processes, rethinking how people can be on board with digital transformation is essential to not leave anyone behind, said Tiwari.

He highlighted the importance of creating a safe space to “fail, try again, and develop” without penalising performance ranking, especially when it comes to more vulnerable groups, such as older workers.

At the end of the day, when employees are updated with the required skill set, they will bring value to the organisation, Tiwari said.

Putting employees first

Every employee in an organisation should be viewed as a talent, said Singapore’s Institute for Adult Learning (IAL), Centre for Workplace and Learning Innovation, Director, Associate Professor Soo Kheng Sim.

She shared an observed trend where enterprises are struggling with talent shortage since everyone competes for the same pool of talent.

Organisations would then need to be more strategic in managing their existing talents to develop and maximise their potential.

“One way is through cross-divisional or interdisciplinary projects where you can bring people together and problem-solve,” she suggested.

“Not all skills can reside in one person. So do look at collaboration, co-creation and innovation.”

These spaces can promote innovation as every person comes with a different experience, perspective, and skill set. Organisations that are open to collaborative work can improve performance and increase productivity, she said.

Viewing every employee as talent also means that employers trust the group of people they work with, contributing to a more open and innovative environment where every worker is trusted with their capabilities.

“In a context where there is a lack of trust, where there is a focus on productivity gains and efficiencies [alone], you may be missing the opportunity for improving overall performance,” said Sim.

The reason is that environments that enforce structure and following processes on the dot may constrict employees’ creativity and stunt productivity in the long term, as employees grow tired and stressed.

According to Sim, a job design that allows for more employee autonomy is one way in which organisations can rely on skill-based competencies and trust that the work that needs to be done will be effectuated.

You can watch the FOI panel recording on-demand here.

Continue the Conversation at Workday Elevate

Join us at Workday Elevate Singapore on May 20, where public sector leaders and industry experts will further explore how skills-based talent strategies, agile finance, and AI-powered technologies are transforming government and public service delivery. 

With a dedicated public sector track, the event will showcase real-world success stories, innovations, and practical insights to help agencies build a resilient, future-ready workforce and financial ecosystem. Don’t miss this chance to gain valuable insights, connect with other forward-thinking leaders and learn how you can take your organisation forever forward.