A quiet revolution is underway across workplaces in the Asia-Pacific region. It’s not loud. There are no massive restructuring announcements. But if you pay close attention, a fundamental shift is beginning to take root — a shift from role-based hiring and promotion to skills-driven workforce strategy.
Aon’s 2025 APAC Skills Impact Survey captures this change in motion. Based on responses across major APAC markets, the report offers a window into how employers are rethinking talent priorities and capability building for a future where adaptability, not tenure, could be the most prized asset.
Let’s unpack some insights that should matter to anyone in the HR, learning, or business leadership ecosystem.
The Skills Awakening
First, the obvious: a vast majority — 90% of surveyed organisations — see skills-related initiatives as essential to their business and talent strategy. For nearly half, skills are seen as critical. Not just important, but non-negotiable for growth.
This isn’t surprising if you’ve been watching what’s unfolding globally — GenAI altering job architectures, customer expectations shifting faster than ever, and employees themselves questioning linear career ladders. In such a context, organisations need talent that can pivot, adapt, and deliver — even if their current job title doesn’t say so.
But recognising the value of skills is one thing. Operationalising that belief is where most organisations are still learning to walk.
Strategy? Yes. Structure? Not Yet.
According to the survey, about 40% of organisations are currently developing talent strategies aligned to emerging and future skill needs. That’s the optimistic lens.
But here’s the fine print: only 26% have a skills framework that cuts across the entire organisation. Most businesses are still building vertical-specific frameworks (e.g., for tech or compliance teams). And only about one-third have been able to truly integrate these frameworks with job architecture — which is critical if you’re hoping to drive mobility, workforce planning, or even skills-based pay.
The gap between intent and infrastructure is clear.
Why It Matters: Career Development, L&D, and Beyond
The report makes a strong case for embedding skills across the entire employee lifecycle. Career development and learning are the most evolved — with skills-based frameworks enabling lateral moves, personalised learning paths, and development planning.
But even here, adoption is patchy. Around 45% of employers are using skill gap analysis to guide learning. Less than 30% use skills to influence performance evaluations. And skills-based pay? That’s still in experimental territory — with fewer than 20% offering allowances or incentives linked to skill relevance.
So, What’s Holding It Back?
Three key challenges surface repeatedly:
1. Budget & Resources
55% cite limited resources as a barrier. Skills initiatives take time to show ROI. In a volatile economy, it’s easier to prioritise quick wins.
2. Measurement Blind Spots
Many organisations hesitate simply because they can’t define success. Without clear KPIs, every skills program risks being labelled a “soft” initiative.
3. Know-How Gaps
While most HR leaders agree on the importance of skills, fewer have the capability to identify, validate, and update them objectively. The risk of subjective frameworks is very real — especially when assessments rely only on manager feedback.
But There’s Movement
Despite constraints, 61% of organisations have already rolled out some form of skills-based initiatives — with leadership development, succession planning, and job redesign topping the list.
More encouragingly, the report points to green shoots in people analytics. In a world obsessed with data, it’s good to see HR leaders using analytics not just to report but to diagnose, forecast, and influence talent decisions. If done well, this could become the catalyst for moving skills from theory to daily practice.
What Should You Do Differently?
If you’re someone responsible for talent, workforce planning, or even running a business unit — here are a few ideas worth borrowing from Aon’s recommendations:
Start Small: Pilot skills-based projects in one vertical. Pick something measurable. Show the value. Expand from there.
Co-own the Agenda: Don’t leave skills to HR alone. Involve business leaders. Functional heads know what’s needed tomorrow.
Anchor on Job Architecture: A skills framework with no link to job design is like a map with no terrain. Get this alignment right.
Use Objective Assessments: Move beyond gut feel and manager opinions. Whether through tools, tests, or analytics — reduce the noise and bias.
The Road Ahead
This report is not about painting a perfect picture. It’s a work-in-progress view of a region slowly turning the corner — from managing roles to enabling capabilities. From generic L&D plans to personalised learning journeys. From job descriptions to skill inventories.
And yes, there’s a long way to go. But the direction is right.
Because if the future of work is fluid, our systems to attract, develop, and reward talent need to be just as dynamic. That future isn’t somewhere in the distance. It’s already at our doorstep.
