Skill-based Organization: how HR processes and organizational models are changing

Free Content Report HR Innovation Practice HR November 2025 33 pages pdf

What you will learn

The growing environmental dynamism, rapid technological evolution, and shift in skill requirements are forcing companies to develop more agile and flexible organizational models that focus on people’s skills. Thus, the report explores the Skill-based Model by describing the evolution of its HR practices and the effect on individuals and organizations.

Table of Contents

1
What is a “skill-based organization” and why is it being talked about?
2
The maturity model developed by the observatory
3
“Skill-based organization” in Italy: prevalence, effects, and elements most desired by people
4
Some observatory business cases on the topic

Index of Graphs

1
The percentage of people who will need to be reassigned over a short- to medium-term (3-5 years) / Source: Digital Innovation Observatories – Politecnico di Milano (www.osservatori.net)
2
The impact of artificial intelligence on skills from an organizational perspective / Source: Digital Innovation Observatories – Politecnico di Milano (www.osservatori.net)
3
The importance of personal development in the values sought by Generation Z in the workplace / Source: Digital Innovation Observatories – Politecnico di Milano (www.osservatori.net)
4
The 5 main HR macro-processes considered in the Observatory “Skill-based Organization” maturity model / Source: Digital Innovation Observatories – Politecnico di Milano (www.osservatori.net)

You will know how to answer these key questions

How does the organization of work activities change with a “skill-based” approach?
How do HR processes transform in a skill-based organization?
What are the most common approaches adopted by organizations?
What are the effects of adopting these approaches on employees?
Which aspects are considered most important by people?

The methodology used in this Report

The HR Innovation Observatory conducts annual research on trends in the human resources sector, focusing on digital solutions and the transformation of HR roles and models. The 2024-25 study concentrated on evolving HR challenges, skill development, AI impact, and competency-based practices. Methods included national labor market analysis, literature review, interviews, and surveys. To define the model presented in the report, information was gathered from several sources, including academic literature, non-academic literature (e.g., reports, white-papers), interviews with HR departments, and interviews with field experts. The prevalence and impact of these approaches were investigated through the administration of two surveys: one to the HR departments of 210 medium and large organizations, and one to 1,500 workers who are members of the Doxa web panel.

Authors