Key Insights:

• Businesses utilize data-driven systems to enhance employee training and streamline internal career growth.
• Companies adopt technology to match workers’ skills with evolving business needs and emerging opportunities.
• Simulations offer employees a safe space to practice and refine critical workplace interactions.

Businesses are turning to advanced tools to address skills shortages and improve employee retention. By integrating data-driven systems into their operations, companies aim to enhance efficiency while offering workers clearer paths for career development.

Jim Swanson, executive vice-president and chief information officer at Johnson & Johnson (J&J), said these tools are crucial in identifying and expanding workforce capabilities. “One of the best ways to learn about these systems is to use them,” Swanson explained, referring to the company’s use of a process called “skills inference” to analyze employee competencies and plan for future needs.

Data-Powered Skills Assessment and Career Development

At J&J, the company has implemented a system to map employee skills against 41 pre-defined areas crucial for its future workforce, such as data handling and process improvement. This system evaluates employee expertise and suggests tailored learning resources, helping individuals advance in their roles.

Similarly, DHL has introduced a “career marketplace” that connects staff with relevant training based on the company’s current and future needs. According to Ralph Wiechers, DHL’s executive vice-president for human resources, the initiative promotes internal recruitment, which can be faster and more cost-effective than hiring externally. “It ensures employees are better suited for new positions,” he said.

Employees are encouraged to take an active role in the process, updating their profiles with information such as certifications and career goals. Both companies stress that the systems are tools to support decision-making rather than replace it, with participation entirely voluntary.

Improving Training with Simulations

Companies are also leveraging new technology to upgrade their training methods. Bank of America offers employees the chance to practice challenging conversations, such as discussing sensitive matters with clients, using simulated scenarios. Michael Wynn, the company’s senior vice-president for innovation and learning technology, explained how this approach creates a safe environment for employees to refine their communication skills.

“Traditional methods don’t offer this kind of hands-on practice,” Wynn said. The system provides personalized feedback, helping staff gain confidence and giving managers insights into where additional training may be needed.

This approach is particularly useful in industries where job requirements change quickly. Instead of relying on static training modules, companies can adapt their learning programs to meet evolving business needs, ensuring employees are always equipped with the latest skills.

Balancing Automation with Human Input

Experts caution that while these systems provide useful insights, they should not be solely relied upon. Nick van der Meulen, a scientist at MIT, pointed out that the accuracy of skill evaluations depends heavily on the quality of the data collected. “It offers a scalable solution to assess multiple skills, but it’s not a complete picture,” he said.

Nimmi Patel, head of skills, talent, and diversity at Tech UK, added that sensitive decisions should remain under human supervision. “These tools are excellent at processing large amounts of information quickly, but they can’t always capture the unique growth paths of individuals,” Patel said.

Both J&J and DHL acknowledge these limitations, ensuring that their systems are designed to complement human oversight rather than replace it. At J&J, for example, results from skills assessments are not used in daily performance reviews, keeping managers in control of key decisions.

Growing Adoption of Workforce Tools

Early reports show strong engagement with these platforms. Employees are using them to identify gaps in their knowledge and find relevant training, while companies benefit from a clearer understanding of workforce strengths and areas needing development.

Swanson said the system helps leadership focus their learning strategies in ways that benefit both the organization and its employees, ultimately fostering a more adaptable and capable workforce.