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State-of-Skills-2026-Feb_cover

The State of Skills-Based Work

Activity Without Outcomes Is the New Organizational Crisis

Your organization is tracking skills, adopting skills-based pay, and monitoring obsolescence — but are those efforts actually moving the needle? Most organizations are doing all the right things and still defaulting to expensive external hires for roles they should be filling internally.

Our 2026 research, drawing on insights from 272 HR professionals across North America and Europe, reveals why most skills investments produce activity without outcomes — and what separates the organizations closing the gap from the ones stuck in motion.

Covered In This Research:
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The adoption paradox hiding inside your skills data: 90% of organizations now use skills data in HR decisions — yet 75% still default to external hiring, and 38% fill fewer than 1 in 4 roles internally.

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Why skills strategy stalls when nobody owns it: Ownership is split across five functions and how this fragmentation makes execution stall even when everyone agrees skills matter.

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The obsolescence clock you're running against: 53% of HR leaders say critical skills expire within three years. 15% say under one year. And 72% report employees already expressing anxiety about keeping up — making this a retention problem, not just a planning one.

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