In the professional services industry, the approach to talent management is becoming a critical success factor. From IT companies to consulting firms, all face a pressing challenge: how to work with skills in a systematic, strategic, and technological way.
A skills-based approach can fundamentally transform the HR function and support business growth. However, there is no one-size-fits-all solution — different approaches may be effective depending on a company’s maturity stage, industry, and specific needs.
Researchers at SAP SuccessFactors have deeply explored this topic to understand how skills can be effectively integrated into HR strategies. Over five years, they conducted research involving around 300 HR leaders, surveyed more than 9,000 employees and managers globally, and identified four levels of skill integration in HR practices — from basic to fully skills-based.
This approach relies on traditional criteria such as previous roles, education, and past experience. Skills are not explicitly prioritized but are implicitly considered.
When it works: For roles that require specific certifications or regulated, highly specialized skills — such as lawyers and auditors.
Technology: Building structured job architectures using tools like SAP SuccessFactors Job Profile Builder helps standardize requirements, manage key elements (descriptions, experience, qualifications, skills, competencies, behavior, education, certifications), and ensure transparency.
Skills are factored into recruitment and development processes, but they are not the primary focus. Hiring remains centered on traditional criteria like education. Compensation is usually based on job level, although skills may impact bonuses. Learning and development efforts target competencies critical for current or future roles.
When it works: For roles with relatively stable core skill sets but shifting emphasis — e.g., sales or people management.
Technology: AI-powered recruiting tools can evaluate a candidate’s technical and professional skills. For instance, SAP SuccessFactors Recruiting solutions match candidate skills with job requirements. Learning Management Systems offer personalized learning paths to build key competencies, fostering continuous development.
Skills are the primary criteria for recruitment, learning, and workforce planning. Job definitions are driven by sets of technical and professional skills.
When it works: For roles where critical skills are specific but transferable through adjacent qualifications, such as marketing or operations.
Technology: SAP SuccessFactors’ Talent Intelligence Hub connects skill data with other HR metrics for strategic decisions, while Opportunity Marketplace supports development through short-term assignments, projects, and mentorship.
Work is organized around tasks and required skills rather than job titles. Workforce planning becomes strategic, forecasting future skill needs and using analytics to connect skills with broader business data.
When it works: For rapidly evolving technical roles where skills are often acquired outside of formal education — such as in IT, finance, and HR.
Technology: SAP SuccessFactors offers a unified, AI-powered skills model that supports every stage of the employee lifecycle — from recruiting to learning, performance, and succession planning. The SAP SuccessFactors Talent Intelligence Hub provides a clear view of the workforce by linking individual skills, strengths, and preferences with employees across the platform. This significantly simplifies and strengthens skills management throughout the entire employee journey.
As companies work to integrate skills into their HR strategies, understanding these four approaches helps build a competency-based roadmap tailored to their goals. No matter where you start, alignment with your company’s context and objectives is key.
Why this matters now for professional services companies:
By exploring these approaches and using the right tools and technologies, companies can build workforce practices that improve efficiency, transparency, and business success. Finding the right mix for your needs is the key to unlocking the full potential of skills-based talent management.
Read the full report to learn more about the four approaches to skill integration.
SAP also offers a free 30-day trial of the core version of SAP SuccessFactors. Explore here.
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In the professional services industry, the approach to talent management is becoming a critical success factor. From IT companies to consulting firms, all face a pressing challenge: how to work with skills in a systematic, strategic, and technological way. A skills-based approach can fundamentally transform the HR function and support business growth. However, there is […]
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