Singapore businesses are not short on talent—but they are racing against time. A new report from Workday, The Global State of Skills, reveals that 52% of business leaders struggle with the time required to reskill employees. As AI transforms workplace demands, companies must adopt a skills-first mindset to stay competitive.
Challenges in Workforce Reskilling:
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Limited Visibility into Employee Skill Sets
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Only 46% of leaders have a clear understanding of their employees’ skills.
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This lack of insight makes pinpointing training gaps a challenge.
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Slow Reskilling Process
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Businesses recognize the need for new capabilities, but speed is a major roadblock.
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As AI and automation reshape industries, rapid workforce upskilling is critical.
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Employee Resistance to Change
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Nearly 50% of leaders say employees hesitate to adopt new ways of working.
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Addressing this resistance requires strong communication and change management strategies.
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The Shift to Skills-Based Hiring:
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36% of companies have already implemented skills-based hiring, and 24% plan to do so within the next year.
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64% of business leaders believe that focusing on skills rather than job titles boosts performance, productivity, and innovation.
This marks a significant shift from traditional hiring models that prioritize degrees and credentials.
Digital Skills vs. Soft Skills: What Matters More?
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64% of business leaders in Singapore cite digital skills as crucial for the future.
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However, 34% of companies struggle with a lack of soft skills like communication and teamwork.
AI may streamline operations, but it cannot replace human adaptability and collaboration. Companies must balance their focus on tech expertise and interpersonal skills to succeed in an AI-driven economy.
AI as a Workforce Disruptor and Enabler:
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AI is accelerating the shift to skills-based hiring and training.
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However, 43% of business leaders are concerned about long-term skills shortages.
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Only 30% feel confident that their workforce is ready for future demands.
How Businesses Can Overcome Resistance to Change:
Workday’s report highlights two key strategies to drive a successful transition:
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Clear Communication – 58% of leaders stress the importance of explaining the benefits of upskilling to gain employee buy-in.
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Effective Change Management – 46% believe structured approaches are necessary to embed a skills-first culture and ensure smooth adaptation.
A Wake-Up Call for Singapore Businesses
As AI reshapes the workplace, a skills-first mindset is no longer optional—it’s necessary for survival. Companies that successfully navigate this transition will unlock AI’s full potential, empower their workforce, and secure long-term success.
