As the ATD audience is keenly aware, merit-based strategies are skills-based. For those who are catching up to merit-based strategies, how are they similar to skills-based strategies? Skills and performance are key components of a merit-based system because they reflect the training, work, and contributions of employees. Unlike other methods of talent management that might prioritize seniority or educational background, a merit-based strategy centers around practical, demonstrable abilities that employees can apply day to day, as well as the upskilling or reskilling training needed to meet the changing needs necessary to have a positive impact on their organization.Heads of State have long looked at government-led skills and merit-based programs as key solutions to their region’s skill shortages, improving unemployment rates and transforming their local economies. England, India, Singapore, and more have key skills-based platforms to keep their constituency competitive in the global market. Nonprofit organizations such as Abdulla Al Ghurair Foundation (AGF) launched a skill-based upskilling and job matching program aimed at connecting Emirati and Arab youth with career pathways and employment opportunities. And, in the private sector, DHL is saving millions in external recruiting costs by gaining visibility into skills gaps and enabling people to drive their own skills-first career growth with a career marketplace, and Roche shortened speed to competency from 1.5 years to 90 days with personalized skills-based learning.How can your organization develop a merit-based, skills-based people strategy? Start with three questions that we believe in our 25+ years in the workforce talent strategy industry are fundamental:What skills do we need to drive our business strategy and competitive advantage? This starts by reviewing your strategy for meeting goals and mandates. Assess challenges, opportunities, and threats. Understand what your leaders and people need to solve problems (skills) efficiently and effectively, and create value.What skills do we currently have in our workforce compared to the broader labor market? Whether you’re in the public or private sector, effective strategy and execution starts with measurement. Measure and validate skills through assessments. Benchmark against the overall skills supply and demand of the labor market and identify emerging gaps in meeting essential public service needs. Train your employees to efficiently and effectively fill those gaps. Create employee skill profiles, with AI making this process smarter, faster, and more efficient.What are the best ways to close identified skills gaps? Leveraging your skills and data, evaluate your “build, buy, borrow, or bot” strategy. Determine which skills to build internally, within the specific context of your organization, through training and development. Assess which skills are readily available on the open market and can be acquired through recruitment or outsourcing. Identify existing skills within your organization that can be re-deployed to more mission-critical areas.Skills are a key currency for global organizations and are essential in merit-based strategy, whether private or public sector. They are a shared language, understanding, and measurement for how to best collaborate to solve problems and create value for public constituencies, investors, and shareholders alike. This currency has dramatically risen in value in 2025. The time to wait for a skills-centric approach is over, with transformation enabled one use case at a time. Cornerstone has created a “Federal Guide to Workforce Agility,” which provides guidance on merit-based talent management and development for the federal workforce. You can find it on our resources page for the federal sector, where you can also access free learning courses on merit-based principles.

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