Strategies organizations use to address the growing disconnect between current workforce capabilities and rapidly evolving business needs. According to Mercer’s 2024/2025 Skills Snapshot Survey Report, companies face significant challenges such as rising labor costs, new work models, limited talent agility, and persistent skill shortages. To close the resulting skills gaps, employers are adopting a range of solutions such as:

• Rewarding skill acquisition
• Hiring external talent with in-demand skills
• Incentivizing skill development through salary progression, promotions, critical skill premiums, and/or performance bonuses

These strategies reflect a broader shift toward skills-based talent models that prioritize adaptability and targeted workforce investment.