AI, sustainability and a fast-moving jobs market are reshaping how we work. Emma O’Dell explores why understanding skills, not just job titles, is vital to staying ahead. From reducing bias to building dynamic teams, skills awareness could be the game-changer that UK businesses need to unlock real innovation and growth
Published at the start of this year, LinkedIn’s Jobs on the Rise 2025 report revealed the significant changes facing the UK jobs market, as the economic landscape continues to evolve. New job opportunities are emerging rapidly, particularly in industries such as AI and sustainability, with roles such as Artificial Intelligence Engineers and Energy Managers creating new and exciting opportunities for the UK workforce.
Skills awareness enables more targeted and compelling recruitment
What’s more, the UK saw the establishment of approximately 846,000 new companies in 2024. In particular, the tech sector saw remarkable growth of 7.3%, as it continued to demonstrate resilience, even amid global economic uncertainties.
Furthermore, the property sector saw a 38% increase in new businesses, and management consultancy firms accounted for an 11% rise. This expansion is being supplemented by substantial investments, technological advancements and a supportive regulatory environment.
The growth of these sectors will require fresh talent and a new approach to skills. We are seeing that businesses are beginning to think differently about their approach to meeting skills requirements. This calls for strong knowledge and foresight of skills – also known as ‘skills awareness’.
A new era of skills awareness
With the focus shifting away from job roles and towards skills, it’s vital businesses have a level of skills awareness to guarantee success. Businesses are moving away from traditional job-based planning and taking a more fluid approach based on capability and skills.
Some organisations are even going one step further and making the shift towards becoming skills-based organisations (SBOs). According to one recent report, 81% of employers used skills-based hiring in 2024 (up from 56% in 2023).
This increase in skills awareness has seen a shift in daily business operations, with workforce planning, attraction, recruitment, professional development, performance management and talent and succession planning processes now being aligned around skills needs.
Why does skills awareness matter now?
The most valuable breakthroughs happen at the intersection of different domains. Skills awareness enables business leaders to identify and cultivate these intersections intentionally rather than discovering them by accident.
LinkedIn’s Jobs on the Rise list spotlights roles like Artificial Intelligence Engineers, Data Governance Managers and Chief Revenue Officers as the fastest-growing positions. But successful business leaders have an awareness of skills that allows them to combine elements of these roles in unexpected ways.
For example, a legaltech business might blend the skills of an AI Engineer (number one on LinkedIn’s list) with deep legal domain expertise – a dynamic and unusual combination not captured in traditional job descriptions.
Equally, a business operating in the sustainability sector could match up the data-driven approach of a Performance Engineer with the in-depth knowledge of an Environmental Officer.
Ultimately, businesses can achieve greater innovation by matching up unexpected and dynamic skill combinations, helping them strive towards their overarching goals of sustained future growth.
Integrating skills awareness into businesses from the ground up
Skills awareness doesn’t mean implementing complex organisational structures. Rather, it’s about having a clear understanding of what capabilities are needed to achieve business growth, and how to acquire, develop and deploy those skills effectively.
As a starting point, it’s vital for business leaders to take time to identify any skills gaps in the current workforce and take stock of the skills they already have. This will allow for purposeful team building going forward, based on specific capabilities rather than considering traditional credentials.
A skills-based approach to team building means that businesses are more likely to create diverse teams with more to offer through different perspectives. Furthermore, businesses will be able to harness existing talent more effectively by matching capabilities to the right challenges.
As businesses evolve over time, it’s also key for business leaders to recognise that skills needs are fluid. They shift and grow alongside the business, so creating clear paths for expanding capabilities is essential.
Reducing hiring bias
The battle for specialised talent also means that business leaders and HR teams must know precisely what skills they need and be able to articulate how those skills will be utilised. Skills awareness enables more targeted and compelling recruitment.
With more than one in three Gen Z applicants facing hiring bias last year, it’s more important than ever that we continue working towards breaking down the barriers to employment. A greater focus on competencies, rather than traditional qualifications, also means reducing bias in the hiring process.
‘Workplace readiness’ skills
When a greater emphasis is placed on skills awareness within an organisation, we begin to see additional skills, known as ‘workplace readiness’ skills, emerge as a result.
Workplace readiness skills are non-technical, foundational human capabilities which make up a key part of any thriving workforce. They can range from critical thinking and creativity, to communication and collaboration, and beyond.
These skills enable individuals to navigate workplace complexities, nurture meaningful collaborations, and adapt to evolving business landscapes throughout their careers.
Competitive edge
In a landscape where businesses are constantly striving for growth despite wider economic challenges, having an increased skills awareness provides a competitive edge for business leaders across the UK.
Rather than implementing complex organisational structures, maintaining an awareness of capabilities, and how to ensure those capabilities are present when needed, will play a vital role in the growth of businesses across the UK.
This will be particularly key when it comes to futureproofing our businesses and ensuring that the skills needed for new job roles in emerging industries are fully and successfully met.
Emma O’Dell is Skills and Capability Director at BPP
