Category: Skills

Skills are better together.

But, are you connecting the right ones?

As part of my ongoing skills anthology, it makes sense to unpack the real value of our skills. I mean, we spend so much time talking, investing and building them, we should get clear on the value they bring, right?

To help us on this journey, a very tasty and long (they’re always long!) research paper from 2023 called “What is the Price of a Skill? The Value of Complementarity”.

It investigates the economic value of skills in the context of complementarity, which refers to how well a skill can be combined with other skills, ideally of high value to benefit each of us.

Don’t worry, I’m not going to regurgitate everything it says.

Instead, I’ve distilled what I feel are the best insights for you to know, explore and apply in your work.

At a glance, this research tells us

• The value of a skill is relative and depends on the skill background of the worker
  
  
• An analysis of 962 skills found that most skills have the highest value when used in combination with skills of a different type.
  
  
• The report also examines the value of Artificial Intelligence (AI) skills, which are found to be particularly valuable, increasing worker wages by 21% on average due to their strong complementarities and rising demand in recent years.

How can you calculate the value of a skill?

💵 The million-dollar question.

As always, the answer is incredibly contextual. Let me unpack that with the guidance of the report.

The authors propose a method that attaches a market value to skills based on market demand and supply as well as their complementarity with other skills.

That means straightforward and logical. I like it!

Let’s move beyond the surface and get a bit nerdier with this. The report echoed one word continuously, “complimentary”. The authors defined this through 3 aspects:

1. Number of Complements. The number of adjacent skills should be positively related to a skill’s value.
   
   
2. Diversity of Complements. The diversity of adjacent skills should be positively related to a skill’s value.
   
   
3. Value of Complements. The value of the adjacent skills should be positively related to a skill’s value.
   
   

Key Takeaway:

The value of a skill is higher if it can be combined with a diverse set of other skills of high value.

In sum: A network of the right skills is vastly more valuable than one skill alone or a mixture of competing skills.

The one skill to rule them all

Of course, this skill doesn’t exist.

But, unsurprisingly, AI is making a strong case for the future.

As if the word of the year couldn’t boost its appeal even further, the report authors found:

We show that skills needed to construct and maintain AI, which is widely considered to be a major breakthrough technology, have significantly higher skill values than the other skills in our dataset—With a premium of 21 %, AI skills are far more valuable than the average skill in our sample (4 %). AI skills have an above average number of complements of large diversity, since AI technologies enter more and more domains for knowledge work. Furthermore, we track the development of skill values over time and find that AI skills, such as Deep Learning and Python have been gaining in value significantly in recent years. Our model allows us to ascribe these changes to an increase in demand relative to supply.

AI is here to stay, and we can’t (and shouldn’t) ignore it.

How you can use these insights

Firstly, let’s cover what you can take away as an individual investing in their skills for the future.

1. Identify your complementary skills
2. Focus on AI Skills (delegation and collaboration)
3. Understand Skill Value
4. Utilise skill stacking and develop T-shaped skills (see the section below on ‘tools’)
5. Always look to reskill and upskill

How to identify your complementary L&D skills

This is something I’ve covered in detail before.

My 2023 article on the 7 skills L&D teams need to succeed will help you explore this in detail.

Yet, everything should be contextual for you. My article explores what I see as the baseline for a modern L&D pro.

Your role will no doubt have nuances that I cannot know or directly account for.

I’d recommend you check out the ‘tools’ section below to explore both the concept of skills stacking and T-shaped skills. These will both help you identify what could be some of the most valuable skills to complement and build a high-value skill network.

How to use these insights to inform your 24/25 L&D strategy

Ok. Let’s turn you into the smartest L&D pro in the room in the coming year’s strategy session.

Here’s 4 actions you can take based on this research:

1/ Develop the concept of a complementary skills network

Your workforce won’t organically think of skill development in this way.

We’ve been taught about skills and hear tons about skills-based organisations. But very little on how to structure our own skills network.

→ This can be a simple educational piece through an article or email series.

Use what we’ve discussed so far to educate people on not only the acquisition of the right skills. Teach them how a network of complementary or connective skills is a worthwhile long-term strategy for future-proofing a career.

2/ Highlight complementarity in L&D programs

It’s no good educating teams on the power of complementary skills and your solutions/resources/programs not aligning with this.

Make it clear how your solutions link to other skills. Showcase which of these works best with other things you’ve built. If you make it so simple to build a complementary skill network, people’s behaviours will change.

3/ Promote AI Skill development

No shock or horror here.

Given the increasing value of AI skills, prioritising the development of AI skills among teams is a no-brainer. Especially given their strong complementarities and rising demand, which the research suggests leads to an average increase in worker wages by 21%.

You can get my step-by-step guide to crafting an AI skill-building strategy for your organisation here and access my zero-cost library of AI for L&D insights on the website.

4/ Communicate the value of skills

Building on the first point.

Your people probably aren’t going to get this concept the first time around. Like any change in patterns of thinking, you have to say the same thing a hundred different ways, a hundred different times.

One way to guarantee this hits home is by leveraging financial outcomes.

The better your skills, the more money you can command. Think of skills as the currency we each grow across the career marketplace. Companies pay top dollar for the best on the market.

⚒️ Connective skill-building tools

1. T-Shaped Skills: An incredibly popular methodology, and one I still find much use in sharing. Get full details on what, why and how to apply in your work here.
   
   
2. Skill stacking: A model not too dissimilar to others I’m sharing here but one less formal than what you expect for the corpo world. Learn more.
   
   
3. The power of combining skills: A helpful set of insights to approach the skill algorithm.
   
   
4. A collection of modern skill-building strategies: Everything from Ikigai to the 3 E’s skills framework.

📊 Useful Charts

The value of AI skills

The most profitable skills tend to have a higher exposure to AI.

Combine and grow for value

The main idea is that combining skills from different areas is more beneficial, as illustrated in Figure A. Similarly, Figure B demonstrates that having a range of skills within the same field also adds value.

Final thoughts

• The value of a skill is strongly determined by its complementarity, meaning how well it can be combined with other skills
  
  
• The value of a skill is relative and depends on an employee’s skill background
  
  
• AI collaboration and delegation skills are the most in demand today
  
  
• Design L&D solutions that enable intelligent connective skill-building

Get more from the skills anthology:

1. The 5 skills that matter for the future of work and how to build them
2. How to close the skills gap
3. A deep dive into workplace skills technology

Before you go… 👋

If you like my writing and think “Hey, I’d like to hear more of what this guy has to say” then you’re in luck.

You can join me every Tuesday morning for more tools, templates and insights for the modern L&D pro in my weekly newsletter.

Everyone is scrambling to stay relevant.

We’re often led down the road of ‘quick hacks’ from social gurus in pursuit of being ‘future-proof’. It’s so hard to know what future-proof looks like in this era.

I could be a full-time gardener next year if AI does what all the ‘experts’ say it will.

I digress.

To shape the future, I look for the skills we need to both thrive and survive the road ahead. Over the past few years, I’ve analysed nearly 20 reports on the future of skills.

Yes, riveting, I’m aware.

Let’s unpack what I discovered in this mountain of research.

The 5 skills that matter for the Future of Work

I hate presentations where you wait an hour or two for the answer.

That’s not how I work, so here’s the headline data you need to know.

These 5 skills appeared in the top 10 of every report. It’s a consistency that’s hard to ignore.

I think of these as the essentials for navigating the next few years of work. Which we all know are going to be transformative (cough *AI*…cough). I’ll take you through what each skill actually entails, why it matters, and how to cultivate it for real world impact.

If you take only one thing away from today’s conversation, let it be this:

And… maybe an even more important takeaway, the future is human-powered, not AI-first.

Trust but verify: The data behind this

I have a Sherlock Holmes case load worth of investigative material.

I won’t list every report. It’s my job to make it easier for you after all. I doubt you’ll explore them. Unless you have several months to digest 200 (ish) + pages, of course.

Here are the sources that formed the backbone of this analysis:

• Microsoft
• Boston Consulting Group
• McKinsey & Company
• World Economic Forum
• Bain & Company

The great disruptor: Generative AI

2023 – 2024 will go down as the year/s of AI.

Each report analysed takes in the rise of Gen AI and how it influences our modern skills. I don’t believe we can talk about skills this year without those two little letters in AI.

The way we live and work is obviously affected by this.

It’s happening whether we like it or not.

The real question is how does it impact the skills we need to succeed?

From my analysis so far, my bet is firmly on doubling down on your human skills. Each new report I sink my brain into only solidifies the need to build a strong foundation of human capabilities.

Deconstructing the 5 skills

I’m not going to leave you high and dry with no actionable takeaways.

I’ll unpack each skill and how you can nurture these in your career. Note: don’t forget the role of context in this exploration. You don’t need every skill and micro-skill on this list.

It’s up to you to find the right mix for your context.

Life is always moving in uncontrollable ways. So, look at what I share as a compass that adapts to it’s environment rather than the map (I hope that makes sense).

1/ Analytical Judgement: The art and science of making smart choices

Often exchanged with critical thinking.

It’s about evaluating information with a blend of logic, creativity, and judgement that can make or break strategic decisions (no pressure).

It’s composed of:

• Critical Thinking: A skill often mentioned yet rarely unpacked to its full potential.
  
  It’s about examining issues from multiple angles, challenging assumptions, and identifying biases in the information at hand.
  
  
• Problem-Solving: This is a combination of creative thinking to generate solutions and analytical thinking to evaluate them.
  
  
• Logical Reasoning: The ability to structure information in a way that allows for confident outcomes. It often involves the use of frameworks or models to make sense of a complex situation.
  
  Basically, it makes the complex sound simple.
  
  
• Decision-Making: Ultimately, analytical judgement is aimed at making informed decisions.
  
  You synthesise all the information you’ve gathered and weigh against the potential risks and benefits, to choose the best course of action.

→ How to Improve

1. Engage in critical thinking exercises: Seek out different points of view. Be intentional in how you assimilate information to make your conclusions. Never outsource your thinking!
   
   
2. Get comfy with data: Not every role demands deep data expertise, but knowing how to interpret trends and outcomes sharpens your decision making.
   
   
3. Explore frameworks: Frameworks like SWOT analysis and Eisenhower’s Decision Matrix add structure to complex decisions.

2/ Creative Thinking: Fresh ideas…

I get this one can always sound a bit ambiguous.

It’s easy to dismiss creativity as a bonus skill, something only a few naturally excel in.

It allows you to break free from conventional thought patterns and explore new ways of solving problems. And…it can be learned.

Here’s what it covers:

• Divergent Thinking: Open the floor for multiple solutions to a single problem, rather than forcing everything into one “right” answer.
  

• Innovation: Creativity is closely tied to innovation.
  
  It’s not just solving problems but doing so in new and unique ways that add value. An emphasis on ‘value’.
  

• Imagination: Imagination allows you to explore ‘what could be‘. We had a lot as children, we lose it somewhere along the way. Find a way to rediscover it.
  

• Flexibility: The art of switching between different types of thought processes and perspectives. Aka, not being afraid to change your mind when given new data.
  

• Risk-Taking: Life is risk. This is not easy, but can be rewarding. I’m not endorsing a reckless approach, rather, a calculated one to trying something new.
  

→ How to Improve

1. Collaborate with Others: Different perspectives can spark new ideas, so don’t pass up the chance to connect with your fellow humans.
   
   
2. Set aside time for unstructured thinking: An hour a week for “free thinking” can spark breakthroughs you won’t find in the structured grind.
   
   
3. Learn from experiments, even failures: Document what works and what doesn’t. Creativity often thrives on these insights.

3/ Digital Intelligence: Get smart with tech

I hope this is a straightforward one.

We live in a world dominated, connected and integrated with digital technology. The best way to survive and thrive in it is by understanding how to leverage its tools.

You can’t stick your head in the sand anymore. That sand is now a digitally connected landscape.

Your digital intelligence is a blend of tech proficiency, digital citizenship, and cognitive skills.

Here’s a more nuanced look at its various components:

• Technical proficiency: Understand how the platforms your most used apps are built on work, from basic software to more specialised tools. I’m talking the basics here.
  
  
• Digital literacy: Beyond just knowing how to use tools, digital literacy involves understanding the “language” of these tools.
  
  You can call this the ‘why’ behind using tools.
  
  
• Protect your data: This is just common sense, imo. It terrifies me how little the average human knows about protecting their personal data.
  
  Most are just bleeding data without knowing it.
  
  
• Be thoughtful: While digital tech is amazing, it comes at a price. Understanding the ethical implications of your digital actions is wise.
  
  Think about copyright laws and understand the societal impact of algorithms. Never forget, “With great power, comes great responsibility”.
  
  
• Move fast (but don’t break things): New tools and platforms emerge daily. Don’t be afraid to experiment and be an early adopter.
  

→ How to Improve

1. Experiment: Try new tools and don’t be afraid to fail. You gotta find what works for you and enhances your life and work. Ignore the market.
   
   
2. Engage in digital conversations: Blogs, social media and newsletters (like this one) can keep you in the loop of the latest, greatest and most useful stuff you need to know.
   
   
3. Prioritise data safety: Get serious about data protection. I know I sound like everyone’s Dad, but read up on best practices, manage passwords securely, and understand basic cybersecurity. Thank me later.

4/ Adaptability: Change with the times

I know this is a overused word.

Yet, we can’t deny its importance. Essentially, it’s being a chameleon and moving with change rather than resisting it. A real mind-f**k for our biology.

Although it sounds simple, it’s a complex interplay of several attributes and attitudes:

• Emotional resilience: This is the bedrock of adaptability. The ability to stay steady under pressure, even as challenges mount.
  
  Let’s be real, this is super hard and to be quite honest, I don’t have all the answers to it. We each have our own methods.
  
  
• Learning agility: Be willing to quickly learn new information and skills, especially in the face of new challenges.
  
  
• Open-mindedness 
  Listen to others’ perspectives.
  
  Being willing to change your own views and approaches when presented with new information is hard, yet, it can be a great unlock.

→ How to Improve

1. Embrace Change: Mix up small habits in your daily routine to become more comfortable with change. Take different paths when you go for a walk or go to the gym at a different time. Make the mind build new experiences.
   
   
2. Broaden your experiences: The more diverse your experiences, the more adaptable you’ll become. Say ‘yes’ to that next project.
   
   
3. Listen closely: Spend more time actually listening to people rather than considering your response. You’ll be amazed at what you can pick up.

5/ Social Influence: Be more human

Don’t get confused.

This has nothing to do with having a large online following or being popular. This is a nuanced skill about building trust, showing credibility, and moving people toward positive outcomes.

Here’s a more in-depth look:

• Communication: The cornerstone of social influence, and our existence. It’s more than talking to fellow humans. It’s about actively listening and being able to read between the lines (a skill in itself).
  
  
• Emotional Intelligence: Essential for navigating interpersonal relationships, emotional intelligence involves both self-awareness and the ability to read and respond to others’ emotions.
  
  
• Leadership Skills
  This isn’t about authority but inspiring and motivating people to achieve a common goal.
  
  
• Credibility
  To influence others, you need to be seen as credible and trustworthy. This means shaving a track history of actually doing the things you talk about.
  

→ How to Improve

1. Get comfortable talking: Whether it’s through public speaking, talking to a friend or watching others. Confidence here will increase your social influence.
   
   
2. Build Emotional Intelligence: Practice empathy and active listening to understand others better. Easier said than done, of course.
   
   
3. Be consistent: Do what you say you will do and live by your actions not just words.

Final thoughts

Looking ahead, one thing’s clear.

While technology will keep evolving, it’s our uniquely human skills that’ll make us indispensable.

The skills we’ve dug into here aren’t trends. They’re the backbone of a resilient, future-ready career.

Here’s how you can put these into action right now:

1. Start small: Pick one skill (you need) to work on. Tackle it in bite-sized ways. Apply critical thinking to a work decision, spend 15 minutes daily on a new digital tool, or run a creative brainstorming session with your team.
   
   
2. Reflect, adjust, repeat: At month’s end, check in with yourself. What progress have you made? What didn’t work? Reflection is a powerful exercise.
   
   
3. Ask for input: Get feedback from colleagues or mentors.
   
   
4. Stay curious: A curious mind is your best ally. Whether it’s a podcast, a conversation with someone outside your field, or reading about on a new insight. Curiosity is the fuel you need.

Next time, we’ll explore the next 5 year outlook for the skills economy.

You might also like

• Here’s a better way to build any skill
  
• How AI And New Skills Are Reshaping The Future Of Work
  
• The Optimal Skill Building Algorithm

Before you go… 👋

If you like my writing and think “Hey, I’d like to hear more of what this guy has to say” then you’re in luck.

You can join me every Tuesday morning for more tools, templates and insights for the modern L&D pro in my weekly newsletter.