Why Investing in a Skills Taxonomy Today Gives You the Talent Advantage Tomorrow

Richmond Kok, Senior Director, Human Resources (Learning & Talent Development), Capella Hotel Group

Richmond Kok, Senior Director, Human Resources (Learning & Talent Development), Capella Hotel Group

The world of work is changing at an unprecedented pace. Technological disruption, shifting business models, and evolving employee expectations are reshaping how we work and who we need to hire. In this environment, organisations can no longer afford to take a traditional approach to talent. We must anticipate what lies ahead and act now to prepare for it. One critical step is to build a skill taxonomy, a strategic tool that enables companies to identify, develop and mobilise the right capabilities for the future.

You may wonder if your organisation already has a skills library. However, a skill taxonomy is not merely a list of competencies. It is a structured framework that defines, categorises and connects skills across roles, functions and levels. It captures the nuances of proficiency, the relationships between lateral skill sets, and the strategic direction of capability development. Put simply, it provides clarity in a web of positions across the organisation.

There has never been a more urgent time to build such a framework. Traditional job descriptions are rapidly becoming outdated. Consider the role of a hotel marketing analyst. Five years ago, it required creativity, communication, and consumer insight. Today, it demands expertise in data analytics, marketing automation tools, behavioural science and digital literacy. The skills required to thrive in almost any role are shifting, and without a clear structure in place, organisations risk being caught unprepared.

This is also not just a simple workforce planning exercise. This is a competitive advantage because building a skill taxonomy allows organisations to move from reactive recruitment to a proactive talent strategy. With a taxonomy in place, hiring decisions become sharper and more inclusive, as hiring managers can assess candidates based on transferable skills and not just traditional career paths.

Moreover, a robust skill taxonomy transforms how learning and development are delivered. It makes training purposeful, targeted and aligned to both business needs and employee aspirations. When workers can clearly see the skills that they need to grow and how those skills link to future opportunities, they are more engaged, more motivated, and more likely to stay. It also empowers managers to coach more effectively and guides our L&D lead to invest in programmes that deliver timely business impact.

So how do we create one? To build an effective taxonomy, organisations must begin with what they know. This includes reviewing existing job descriptions, CVs, performance data, and LNAs to uncover the skills currently in use. But this is not the job of HR alone. Business leaders and subject matter experts must be actively involved, offering insights into how their functions are evolving and which capabilities will be critical moving forward. Their perspective ensures that the skills taxonomy is grounded in reality, not theory.

External data is equally valuable. Industry frameworks and market insights from industry reports can help enrich the taxonomy with a broader view of the global talent landscape. Skills should then be grouped into logical clusters, such as technical, cognitive, and affective, and mapped to roles before assigning proficiency levels and development pathways. This arduous but inevitable process transforms scattered data into a strategic asset.

Furthermore, the process doesn’t stop here. A skill taxonomy document should not become a dust collector. It must evolve in step with the organisation and the broader market. Therefore, regular review and updates should become an embedded practice rather than a one-off project.

In a world increasingly driven by skills, those with a clear, structured view of skills will lead. A skill taxonomy enables agility, resilience and foresight. It supports accurate hiring and facilitates internal mobility. More than that, it builds a culture of transparency and trust, whereby talent decisions are based on evidence, not guesswork.

So, the question to ask ourselves now is no longer whether we should build a skill taxonomy, but rather how soon we can start. By acting now, organisations place themselves at the forefront of building a future-ready workforce. In the race for future talent, those who know their skills will emerge as winners.

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