Why Skill Adjacency Matters in Modern Talent Strategies

In today’s rapidly evolving business landscape, organizations must adapt quickly to stay competitive. A core part of this adaptability lies in how effectively companies harness their employees’ potential. Skill adjacency the process of building new skills by leveraging existing ones has emerged as a critical component of modern talent strategy.

It allows businesses to upskill and reskill their workforce efficiently, ensuring they stay agile in the face of industry disruptions. However, when organizations fail to tap into the full potential of their employees, they risk losing competitive advantage, productivity, and even talent. According to a LinkedIn report, 94% of employees say they would stay longer at a company that invests in their learning and development.

Ignoring opportunities to identify and cultivate adjacent skills not only leads to untapped talent but also creates skill gaps, higher turnover, and missed opportunities for innovation. Embracing skill adjacency helps organizations future-proof their workforce while fostering engagement and loyalty. Let’s explore what skill adjacency means and why it is essential for modern talent strategies.

What is Skill Adjacency?

Skill adjacency refers to the interconnected nature of skills and how certain abilities naturally complement and build upon one another. It enables professionals to expand their expertise by leveraging existing competencies to acquire new ones. For example, a project manager can easily develop resource allocation or stakeholder communication skills by building on their current strengths. This approach accelerates learning, allowing individuals to transition into new roles or responsibilities without starting from scratch.

In the modern workplace, where hybrid roles and interdisciplinary demands are the norm, skill adjacency plays a critical role in continuous development. Recognizing overlaps between skills allows professionals to adapt to evolving job requirements and enhance their career growth. For instance, a graphic designer can transition into user experience (UX) design, while a sales professional can gain negotiation and data analysis skills to move into account management.

According to the LinkedIn Workplace Learning Report 2022, 89% of learning and development professionals believe internal skill-building is essential for employee success. Skill adjacency also promotes innovation by equipping professionals with diverse, complementary skills that enhance collaboration and problem-solving.  Research by Deloitte  77% of organization and HR executives say flexibly moving skills to work is critical to navigating future disruptions.

The purpose of a skill adjacency is to provide the organization with a clear view of what skills are closer to one another and how close they are. Can a person with a particular skill be upskilled or cross-skilled in another? This can be answered by referring to a skill adjacency matrix.

“The purpose of a skill adjacency is to provide the organization with a clear view of what skills are closer to one another and how close they are. Can a person with a particular skill be upskilled or cross-skilled in another? This can be answered by referring to a skill adjacency matrix.”

Chief Learning Officer▪️Keynote Speaker
Krishnan Nilakantan

Skill Adjacency's Role in Talent Strategy

Skill adjacency is a vital element of talent strategy, focusing on cultivating skills closely related to employees’ existing competencies. For organizations, it serves as a strategic tool to address skill gaps, optimize talent allocation, and enhance adaptability in a fast-evolving business environment. By incorporating skill adjacency into talent strategies, companies can nurture a versatile workforce capable of addressing current and future challenges without over-reliance on external recruitment.

1. Streamlined Talent Mobility

Skill adjacency supports talent strategies by enabling organizations to redeploy employees across departments or roles effectively. Employees with overlapping skills can transition into new responsibilities with minimal training, ensuring operational continuity. For instance, a marketing analyst with knowledge of data visualization can take on business intelligence responsibilities, enhancing organizational agility and mobility.

2. Cost-Effective Upskilling

Within a robust talent strategy, skill adjacency allows organizations to focus on training existing employees rather than investing heavily in external hiring. This approach reduces recruitment costs while retaining institutional knowledge. For example, transitioning an HR professional into a people analytics role through targeted training is both efficient and cost-effective.

3. Enhancing Workforce Resilience

A strong talent strategy leverages skill adjacency to prepare organizations for disruptions. Employees trained in adjacent skills provide operational flexibility, ensuring business continuity during market shifts. For example, training customer service teams in technical troubleshooting enhances resilience in technology-driven industries.

4. Driving Internal Innovation

Skill adjacency is a driver of innovation within talent strategies. Professionals with interconnected skills bridge knowledge gaps, fostering cross-functional collaboration. For instance, a developer with product management skills can align technical solutions with user needs, enabling faster and more effective innovation cycles.

5. Addressing Industry-Specific Needs

Talent strategies that emphasize skill adjacency help organizations align workforce capabilities with industry-specific trends. By developing adjacent skills, businesses can prepare for sector-specific advancements. For example, financial institutions can upskill employees in blockchain and digital analytics to meet fintech demands.

6. Creating a Culture of Continuous Learning

Skill adjacency fosters a culture of continuous learning, a core tenet of successful talent strategies. This approach helps employees adapt to changing roles and ensures the organization remains competitive. A workforce trained in adjacent skills cultivates curiosity, proactive growth, and long-term organizational success.

Skill adjacency is more than a learning framework it is a cornerstone of future-ready talent strategy. By embracing this approach, organizations can stay ahead in a world of constant change, ensuring their workforce is equipped to drive innovation, agility, and sustained growth.

How Adjacent Skills Help Build Skills-First Organizations

Adjacent skills are more than just complementary abilities they are a strategic enabler for creating a dynamic, adaptive, and future-ready workforce. By integrating the concept of skill adjacency into a skill-first approach, businesses can unlock new dimensions of growth and operational efficiency. Here’s how:

1. Foster Role Hybridization

In today’s business environment, roles are increasingly hybrid, requiring employees to combine diverse skill sets to meet job demands. For example, a customer service representative may also need to analyze customer feedback data and present insights to the management team. Adjacent skills, such as data visualization or basic analytics, help employees thrive in such blended roles. This adaptability increases individual effectiveness and ensures the organization remains flexible and responsive to evolving needs.

2. Create a Culture of Knowledge Sharing

Employees who develop adjacent skills often bridge knowledge gaps across teams. For example, an HR professional with adjacent skills in digital tools like learning management systems can guide the organization in optimizing training programs. This cross-functional knowledge-sharing encourages collaboration, improves team synergies, and promotes a culture of continuous learning. It also strengthens an organization’s collective expertise, making it more resilient in the face of challenges.

3. Reduce Dependency on Niche Talent

Organizations often rely on specialists for critical but specific tasks, which can create bottlenecks during periods of high demand or employee turnover. By encouraging adjacent skills, organizations can reduce this dependency. For instance, if software developers acquire basic UX/UI design skills, they can handle design tweaks without needing a dedicated designer, ensuring operations remain efficient even in the absence of niche experts.

4. Enhance Succession Planning

Building adjacent skills prepares employees for leadership roles by equipping them with a diverse skill set. For example, a team leader with operational experience who also develops financial acumen can seamlessly transition into higher-level management roles. These employees bring a well-rounded perspective, making them better equipped to navigate complex challenges and lead teams effectively.

5. Encourage Agile Team Structures

Adjacent skills enable teams to operate fluidly by allowing employees to step into various roles as needed. In agile environments, where responsibilities often shift, this adaptability is crucial. For instance, a project manager with adjacent technical skills can collaborate directly with developers, bridging communication gaps and ensuring projects move forward smoothly.

6. Strengthen Employer Branding

A company that prioritizes adjacent skill development sends a strong message to both current and prospective employees: it values growth and innovation. This commitment to employee development enhances the company’s reputation as a forward-thinking employer. Such branding attracts top-tier talent, boosts employee retention, and positions the organization as a leader in fostering career growth.

7. Support Diversity of Thought

Adjacent skills often arise from diverse experiences, bringing fresh perspectives to problem-solving. For example, a marketing professional with storytelling skills gained from freelance writing can approach branding in creative and unconventional ways. This diversity of thought leads to innovative solutions and strengthens the organization’s ability to tackle complex challenges.

8. Increase Resilience During Organizational Change

When organizations undergo restructuring, employees with adjacent skills can adapt quickly to new roles or responsibilities, ensuring continuity. For example, during a merger, employees who understand technical operations and project management can bridge gaps, minimizing disruptions and maintaining productivity during the transition.

9. Facilitate Tailored Development Plans

Adjacent skills provide a clear pathway for personalized employee development plans. Managers can use these skills to design step-by-step growth strategies, such as training a marketing associate in analytics or a data scientist in visualization tools. These tailored plans boost engagement, ensure alignment with organizational goals, and create a win-win scenario for both employees and the business.

By focusing on adjacent skills, organizations can build a workforce that is versatile, innovative, and prepared for the future. This approach shows how to identify skill gaps but redefines how talent is cultivated, unlocking potential at every level of the organization.

Few Methods Help You to Identify Skill Adjacencies

Identifying skill adjacencies involves understanding the relationships between existing and potential skills to create a roadmap for growth. Here are some innovative and actionable methods to pinpoint skill adjacencies:

1. Leverage Job Shadowing and Cross-Training

Encourage employees to participate in job shadowing or cross-training programs to uncover adjacent skills that are relevant to other roles. This hands-on exposure often reveals hidden connections between existing capabilities and new opportunities for development.

2. Explore Role Transitions

Review the career paths of individuals who have successfully transitioned within or across roles in your organization. These transitions often highlight skill adjacencies that others can use as a blueprint for their growth.

3. Utilize Technology for Skill Analysis

Advanced tools like AI-driven talent platforms or learning management systems (LMS) can analyze skills data, suggest adjacent skills based on proficiency levels, and recommend relevant training programs. These tools can also predict future skill requirements based on industry trends.

4. Engage in Peer Reviews and Feedback

Regularly conduct peer reviews or team feedback sessions to identify skills employees may unknowingly possess that could be built upon. Peers often have insights into strengths that employees might overlook, helping to reveal adjacent skill areas.

5. Focus on Industry Trends

Examine emerging trends in your industry to identify skills that are becoming increasingly relevant. From there, map these skills to your team’s current capabilities to uncover adjacencies that align with future demands.

6. Evaluate Transferable Skills Side Projects

Employees often develop valuable skills outside of work through hobbies or side projects. For instance, an employee who designs websites as a hobby may have adjacent UI/UX design skills that can be harnessed professionally.

7. Run Scenario-Based Simulations

Use real-world scenarios or simulations to observe how employees solve problems or tackle challenges. This approach helps uncover adjacent skills that may not be evident in day-to-day tasks but could be nurtured for broader applications.

8. Encourage Self-Reflection and Self-Assessments

Provide tools and resources for employees to reflect on their abilities and identify areas they feel confident in or curious about. Personal insights often uncover adjacencies that align with their career goals and interests.

9. Examine Skill Progression in Similar Roles

Research how skills typically evolve in comparable roles across industries. Understanding the natural progression of skills in similar jobs can reveal logical adjacencies for growth and development.

By integrating these strategies into your talent development initiatives, you can uncover skill adjacencies that empower employees to unlock their potential and support organizational success.                    

Conclusion

Skill adjacency is a transformative strategy that enables organizations to enhance adaptability, uncover new opportunities, and drive innovation. By leveraging related or complementary skills, companies can stay agile and competitive while minimizing reliance on external hiring.

Edstellar’s Skill Matrix is designed to help organizations operationalize skill adjacency effectively. The platform provides a clear view of existing skills, identifies adjacent skills, and recommends targeted development paths. This ensures employees can transition seamlessly into roles that align with their potential and organizational goals.

Powered by AI, Edstellar’s tools identify skill gaps, map complementary skills, and provide personalized learning paths. For example, the Skill Matrix might highlight how a data analyst can upskill for a data science role, optimizing workforce capabilities and aligning with future demands.

By fostering a culture of continuous learning, Edstellar helps businesses build a future-ready workforce. Employees are more engaged and motivated when they see clear development opportunities, leading to improved retention and innovation within teams.

Through strategic workforce planning and robust tools, Edstellar enables organizations to stay ahead in a dynamic marketplace, making skill adjacency a cornerstone of long-term success.