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Carnegroup hero image – management training

Skills Taxonomy & Why it Matters to Businesses

Create a comprehensive skills taxonomy and form skill clusters for different job roles with eloomi’s advanced skills architecture.

What is a skills taxonomy?

A skills taxonomy is a hierarchical classification of skill sets, which can be used to organize and describe the knowledge within an industry

To put it in the most simple words, a taxonomy is a categorization of things. A skills taxonomy categorizes skills at an organizational level and helps you identify the competencies of your company’s workforce in a quantifiable manner.

For example, an HR manager with a skills taxonomy in place will know that a UX Designer needs to have a specific set of skills that might be very different from a Head of Sales. We all know this instinctively, but when the details are mapped out through a skills taxonomy, we unlock the power to easily identify needed skills and automate relevant training.

A skills taxonomy will help you to take the initiative to combat skills gaps by providing a strategized methodology for upskilling your employees. You will be able to do workforce planning with an in-depth level of detail and the help of efficient skills management.

Under this system, skills within an organization are classified into groups and clusters, creating a unified and codified understanding in a simple language. Keep reading or book a personalized product demo to find out how you can use it to achieve your goals.

woman working in front of a laptop

Why Businesses Need a Skills Taxonomy

A skills taxonomy is a tool that helps businesses find the best candidates for open job roles. It helps you build a hierarchical structure of skills or abilities to develop and tap into the very best of your people. It goes from the most general, broad skills which are narrowed down to the most specific skills.

The role-based approach is one of the conventional approaches of companies that may help in filling up vacancies. However, the list of skills required to improve the internal mobility of your business can be better achieved by shifting to skills-based hiring. HR leaders can build a skills taxonomy, which can help enhance a company’s hiring process. 

To begin with the creation of a skills library, you need to gather as much information as possible on your company’s ideal candidate and work environment and their effects on your employees. Once you figure out the factors important for your employee’s success, you can measure those factors through job analysis. 

The next step is to identify where each skill falls in the hierarchy and find out how each skill relates to other workforce skills and assign a level of importance to each skill. 

Once you have the hierarchy of the skill set, you can create job descriptions with the required skill set. This will help you figure out which skills are needed for new jobs and how many people with those skills are currently employed at your company.

Benefits of a Skills Taxonomy for HR and Managers

A skills taxonomy can help HR managers understand the different levels of technical skills required to fill in the available job vacancies. Let’s examine how eloomi’s comprehensive training tools can benefit your company and HR managers.

Simplified hiring and onboarding

A skills taxonomy can be used as an alternative to resumés when screening potential employees. A typical resumé is only a list of work experience and education. It does not give the HR department enough information about how qualified the applicant may be for a particular position. But with the right onboarding and training tools, you can lay out a definite requirement to your HR team based on which candidates can be chosen.

It is also helpful during an interview process because it gives the interviewer an idea of how well the applicant would fit in with their team members and how much training they might need before being fully functional within the company. The hiring process of your company can be made easier when there is a clear list of criteria that needs to be fulfilled before they can be selected and assigned to the available job titles.

Learning and development

Another interesting fact about skills taxonomy is that it also helps your employees grow as an individual. Keep in mind an individual’s growth is a company’s growth too. The skills taxonomy helps you obtain a set of skill data possessed by your employees and assess their skill levels. You can understand the skill gap and organize a training program with practical use cases optimizing and reskilling your employees, ensuring their preparedness for new challenges.

Every individual looks for an opportunity to learn and grow. When such an opportunity is provided to your employees, you can boost your rate of retention of your skilled employees, and it will also help in laying down a bright career path for your employees with further emerging skills.

Improved resource allocation

Human resource management plays a crucial role in every business. On the one hand, overhiring can result in idle employees and increased expenses for the company due to payroll. On the other hand, under-hiring can result in an increased workload on your employees, reducing qualitative productivity and increasing dissatisfaction from work. It is important for you to know the requirements and allocate your resources, be it training or humans, accordingly.

With a skills-based approach, your HR team can better improve the efficiency and operation of your company. With a proper skills inventory, you can identify the areas of work along with the list of skills required for an efficient workflow and allocate your employees to the roles best suited for the skills possessed by them.

You can assess the productivity of your employees with a performance appraisal system and check their progress and eligibility for promotions or transfer to a different role. You can make optimum use of your workforce by assigning them the right tasks and generating better results with improved productivity. 

Creates more upward mobility

By creating a taxonomy of skills, you can make it easy for your employees to see what skills they need to learn to move up in their career. In addition, it also helps your HR team identify the skills that are essential for each position. 

With a proper taxonomy of skills, you can assess the skills available in your team and understand the new skills that are required further. With definite skills in mind, you can tap into the labor market and find suitable candidates for your needs to improve internal mobility.

It also helps create a performance management system for your employees where you can track the progress and set learning goals for every individual based on their progress and training requirements.

Discover employee skills with eloomi

The future of work in any business is dependent on the skills of the workforce. In this guide, we’ve given you a starting point to how the taxonomy of skills can help develop your business, improve the scope of improvement for your employees and make the hiring process much more effective for your hiring team. 

What’s more important is when you shift to a skill-based approach instead of a role-based one, the question of bias is eliminated, and your business can tap into numerous opportunities to succeed.

eloomi Skills allows you and your employees to set up a comprehensive skills taxonomy in just a few steps. Empowering you to provide training in a simple and common language, easy to understand and effective enough to optimize your business operations overall. It helps your employees learn new soft skills required to improve their proficiency, ultimately resulting in the efficient operation of your business.

Get started with us today and create a taxonomy of skills for your company!


Want to know more about Skills?
Carnegroup hero image – management training

Skills Taxonomy & Why it Matters to Businesses

Create a comprehensive skills taxonomy and form skill clusters for different job roles with eloomi’s advanced skills architecture.

What is a skills taxonomy?

A skills taxonomy is a hierarchical classification of skill sets, which can be used to organize and describe the knowledge within an industry

To put it in the most simple words, a taxonomy is a categorization of things. A skills taxonomy categorizes skills at an organizational level and helps you identify the competencies of your company’s workforce in a quantifiable manner.

For example, an HR manager with a skills taxonomy in place will know that a UX Designer needs to have a specific set of skills that might be very different from a Head of Sales. We all know this instinctively, but when the details are mapped out through a skills taxonomy, we unlock the power to easily identify needed skills and automate relevant training.

A skills taxonomy will help you to take the initiative to combat skills gaps by providing a strategized methodology for upskilling your employees. You will be able to do workforce planning with an in-depth level of detail and the help of efficient skills management.

Under this system, skills within an organization are classified into groups and clusters, creating a unified and codified understanding in a simple language. Keep reading or book a personalized product demo to find out how you can use it to achieve your goals.

woman working in front of a laptop

Why Businesses Need a Skills Taxonomy

A skills taxonomy is a tool that helps businesses find the best candidates for open job roles. It helps you build a hierarchical structure of skills or abilities to develop and tap into the very best of your people. It goes from the most general, broad skills which are narrowed down to the most specific skills.

The role-based approach is one of the conventional approaches of companies that may help in filling up vacancies. However, the list of skills required to improve the internal mobility of your business can be better achieved by shifting to skills-based hiring. HR leaders can build a skills taxonomy, which can help enhance a company’s hiring process. 

To begin with the creation of a skills library, you need to gather as much information as possible on your company’s ideal candidate and work environment and their effects on your employees. Once you figure out the factors important for your employee’s success, you can measure those factors through job analysis. 

The next step is to identify where each skill falls in the hierarchy and find out how each skill relates to other workforce skills and assign a level of importance to each skill. 

Once you have the hierarchy of the skill set, you can create job descriptions with the required skill set. This will help you figure out which skills are needed for new jobs and how many people with those skills are currently employed at your company.

Benefits of a Skills Taxonomy for HR and Managers

A skills taxonomy can help HR managers understand the different levels of technical skills required to fill in the available job vacancies. Let’s examine how eloomi’s comprehensive training tools can benefit your company and HR managers.

Simplified hiring and onboarding

A skills taxonomy can be used as an alternative to resumés when screening potential employees. A typical resumé is only a list of work experience and education. It does not give the HR department enough information about how qualified the applicant may be for a particular position. But with the right onboarding and training tools, you can lay out a definite requirement to your HR team based on which candidates can be chosen.

It is also helpful during an interview process because it gives the interviewer an idea of how well the applicant would fit in with their team members and how much training they might need before being fully functional within the company. The hiring process of your company can be made easier when there is a clear list of criteria that needs to be fulfilled before they can be selected and assigned to the available job titles.

Learning and development

Another interesting fact about skills taxonomy is that it also helps your employees grow as an individual. Keep in mind an individual’s growth is a company’s growth too. The skills taxonomy helps you obtain a set of skill data possessed by your employees and assess their skill levels. You can understand the skill gap and organize a training program with practical use cases optimizing and reskilling your employees, ensuring their preparedness for new challenges.

Every individual looks for an opportunity to learn and grow. When such an opportunity is provided to your employees, you can boost your rate of retention of your skilled employees, and it will also help in laying down a bright career path for your employees with further emerging skills.

Improved resource allocation

Human resource management plays a crucial role in every business. On the one hand, overhiring can result in idle employees and increased expenses for the company due to payroll. On the other hand, under-hiring can result in an increased workload on your employees, reducing qualitative productivity and increasing dissatisfaction from work. It is important for you to know the requirements and allocate your resources, be it training or humans, accordingly.

With a skills-based approach, your HR team can better improve the efficiency and operation of your company. With a proper skills inventory, you can identify the areas of work along with the list of skills required for an efficient workflow and allocate your employees to the roles best suited for the skills possessed by them.

You can assess the productivity of your employees with a performance appraisal system and check their progress and eligibility for promotions or transfer to a different role. You can make optimum use of your workforce by assigning them the right tasks and generating better results with improved productivity. 

Creates more upward mobility

By creating a taxonomy of skills, you can make it easy for your employees to see what skills they need to learn to move up in their career. In addition, it also helps your HR team identify the skills that are essential for each position. 

With a proper taxonomy of skills, you can assess the skills available in your team and understand the new skills that are required further. With definite skills in mind, you can tap into the labor market and find suitable candidates for your needs to improve internal mobility.

It also helps create a performance management system for your employees where you can track the progress and set learning goals for every individual based on their progress and training requirements.

Discover employee skills with eloomi

The future of work in any business is dependent on the skills of the workforce. In this guide, we’ve given you a starting point to how the taxonomy of skills can help develop your business, improve the scope of improvement for your employees and make the hiring process much more effective for your hiring team. 

What’s more important is when you shift to a skill-based approach instead of a role-based one, the question of bias is eliminated, and your business can tap into numerous opportunities to succeed.

eloomi Skills allows you and your employees to set up a comprehensive skills taxonomy in just a few steps. Empowering you to provide training in a simple and common language, easy to understand and effective enough to optimize your business operations overall. It helps your employees learn new soft skills required to improve their proficiency, ultimately resulting in the efficient operation of your business.

Get started with us today and create a taxonomy of skills for your company!


Want to know more about Skills?
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