Career Development Strategies for a Skills-First Era

Skills are the new currency of work, and organizations that fail to invest in career development that emphasize skills risk falling behind. This is one of the central insights of Right Management’s latest report, “The Career Imperative,” the second installment in our 2025 The State of Careers™ series.

Building on the foundation laid in our first report, “The Career Equation,” this new study dives deeper into the evolving nature of career development strategies and the urgent need for organizations to rethink their talent strategies and how they support their people.

According to our global research of 2,402 white-collar employees and 1,029 business leaders across eight countries, the message is clear: skills have become the new currency of business resilience. In a world where AI disruption, talent scarcity and organizational flattening are rewriting the rules, companies that fail to prioritize skills risk widening talent gaps and losing their competitive edge. Those that embrace a skills-first approach will not only survive but thrive.

The Disappearing Corporate Ladder: Why Skills Are the Currency of the Future

The traditional corporate ladder is disappearing. Our research shows that only 12% of employees aim for formal management roles, and just 16% define career advancement as climbing a ladder. Instead, employees are seeking impact, flexibility and meaningful work. And they want to build skills that keep them relevant in a rapidly changing market.

This shift isn’t just a preference; it’s a survival strategy. The World Economic Forum predicts that 39% of the skills employees use today will change or become obsolete within five years. That means nearly half of your workforce’s current capabilities could be outdated by 2030. When employees prioritize skill-building over title-chasing, they respond to this reality: careers are no longer defined by vertical moves but by the ability to pivot and adapt as roles evolve.

For organizations, this creates an urgent imperative. If skills are the foundation of career resilience, then companies must treat them as a strategic asset — not an afterthought. A skills-first approach ensures career growth and that businesses stay competitive in an era where disruption is constant and talent gaps can derail performance.

The Disconnect: Career Growth vs. Organizational Feedback

Skills may be the currency of the future, but many organizations have not adapted to the new reality. Our study uncovers a striking mismatch between what employees value and what employers prioritize. Employees want growth and development, while organizations offer feedback. Here’s a look at the data:

• Top employee priorities for success in the next two years:
  • Internal mobility opportunities (20%)
  • Formal development programs (19%)
  • Face-to-face learning experiences (15%)
• Top organizational budget allocations:
  • Performance measurement and feedback (74%)

Feedback alone doesn’t fuel careers. Employees want more — real opportunities to practice new skills, explore roles and adapt to change. Yet most organizations are still investing heavily in static processes like performance reviews, which do little to prepare talent for the future.

This gap isn’t just about missed expectations. It’s also about missed strategy. When employees crave skill-building and organizations cling to outdated feedback models, both sides lose.

The solution isn’t more reviews; it’s prioritizing career growth. Organizations must shift toward skills as the organizing principle of career development. That’s why the next step is clear: treat skills as currency.

Skills as Currency: What It Means for Your Business

Think of skills as a tradable asset within your organization. When employees can clearly see what skills are valued, track their own growth and access opportunities to apply those skills, you create a talent marketplace that benefits everyone:

• Employees gain clarity and confidence in their career paths.
• Managers make smarter decisions about team composition and project assignments.
• Organizations build resilience by aligning talent capabilities with strategic goals.

This approach isn’t theoretical. Companies like Volvo and American Express are already proving what it looks like in practice.

Volvo reorganized its structure around key business pillars to prioritize skills for its electric vehicle transformation. American Express launched its “Navigator” platform, enabling employees to share skill snapshots and career goals with managers and mentors for more meaningful conversations. These examples show that treating skills as currency isn’t just a concept — it’s a competitive advantage.

And that’s exactly what “The Career Imperative” lays out: a roadmap for organizations ready to make this shift. Our research doesn’t just highlight the urgency; it provides actionable strategies to operationalize skills-first thinking and build a workforce that thrives in disruption.

The Career Imperative: Key Findings That Demand Action

Our research highlights several urgent realities:

• 63% of employers face critical skills gaps that threaten productivity and innovation.
• Organizations that adopt skills-based strategies see a 42% higher ability to lead in AI adoption.
• Companies that invest in career navigation boost their confidence in retaining qualified talent by 34%.

These numbers underscore the business case for a skills-first approach. More than employee satisfaction, it’s about building a workforce that can pivot, adapt and deliver in an era of constant disruption.

How to Operationalize Skills as Currency

Right Management’s report offers an actionable roadmap for organizations ready to make the shift. The path is clear:

1. Create Experience Pathways

Replace rigid career ladders with maps of multiple paths. Growth should happen through skills, projects and varied experiences — not just promotions. Make internal mobility visible and accessible.

2. Make Skills the Backbone of Decisions

Treat skills like currency. Maintain a digital inventory of skills across your organization. Use skill portfolios to help employees showcase their capabilities and guide managers in assigning work strategically.

3. Reset the Manager’s Role

Managers must evolve from task supervisors to career navigators. Equip them with real-time skills data, practical guides and authority to support creative shifts. Reward leaders for developing talent, not just retaining it.

4. Take an Experimental Approach

Encourage career experiments — short-term projects or role trials that let employees explore new skills and interests. This agile approach keeps development relevant and actionable.

5. Make Learning Happen in the Flow of Work

Tie development to real business initiatives. Offer mentorship, cross-functional assignments and AI pilot projects. Celebrate skill gains through outcomes, not just training hours

Prioritize Career Development with Right Management

At Right Management, we’ve spent decades helping organizations drive higher performance with future-ready career development strategies. Our expertise in coaching, assessments, talent development and leadership enablement positions us as the total talent partner of choice for companies ready to embrace the future of work.

Using research-backed data, we deliver strategic frameworks and hands-on support that align employee ambitions with organizational needs. From building digital skill portfolios to training managers as career navigators, we help you create a workforce that’s ready for tomorrow.

Now, the question is: Is your organization ready for the new skills-based era?