Where skills strategy meets business impact Executive summary What sets high-performing organizations apart is their ability to unleash talent atscale, enabling their workforce to respond to change and opportunity with agility.Skills-powered organizations achieve this by identifying, developing, and deploying The 2025/2026 Skills Snapshot Survey highlights a sustained trend: more companiesare embracing skills-powered talent and reward practices, with five years of trend New this year, HR leaders provided self-reported ratings of their organizations’effectiveness in running skills-based talent programs.1In addition to benchmarking Those highly effective at attracting in-demand skills are:• 2.1 times more likely to maintain a unified skills library Once skilled talent is on-boarded, companies must manage and develop thesevaluable skills. Those highly effective at tracking internal skills are:• 2.3 times more likely to maintain a single enterprise-wide skills library Organizations that take a skills approach to their talent strategies are drivinginnovation for business improvements, reducing turnover costs, and responding This article unpacks why leading companies are doubling down on skills as theengine of productivity, and how a skills-powered approach can create a sharper 1HR leaders rated how well their organizations manage skills-based talent programs by scoring themselves as low,average, or high on ten key practices. Based on their total scores (up to 30 points) and their position within a normaldistribution, companies were categorized as high, average, or low. The top and bottom, roughly 20% of scores, were Contents Laying stronger groundwork for Mercer’s fifth annual Skills Snapshot Surveyreveals that more organizations than ever areembracing skills as a cornerstone of their talentstrategy and are building the infrastructure to putthem into action. Drawing on insights from nearly Survey snapshot •1077talent, rewards, and HRleaders surveyed •72countriesrepresented •63%from for-profit TheGlobal Talent Trends studyidentified thatcompanies are leaning into skills to drive human-centric productivity. Organizations that excel needto be great at designing work, developing skills, •27%employ10,000+people 15+industries Confidence is climbing, with a twist •Comprehensive skills libraries are expanding.38% of companies now use a single skills libraryacross all organizational levels, up from 30% in2023. HR leaders who reported themselves ashighly effective in skills-based practices are twice HR leaders’ confidence in identifying criticalskills for their role, their team, and the enterpriserises in step with their perceived effectivenessin running skills-based talent practices. Amongcompanies who rate themselves highly effective •Skills mapping is accelerating.55% oforganizations now map skills to jobs — nearlydouble the 28% reported in 2022. Skills mapped This year, 43% of all respondents report beingvery confident in knowing the skills most criticalto their company, up from 35% in 2023. Steadyprogress in identifying company-wide skills,inching them closer to the higher levels ofconfidence the participants have in identifying •Data upkeep is improving.More companiesare keeping their skills data current, with 25%updating it continuously (up from 18% in 2023)and 49% updating it at least annually (up from42% in 2023). Most of this data now lives in HRM •Reward strategies are evolving.One infive organizations has adopted a skills-basedrewards program, up from 17% the previous year, Embedding skills across talent practices Addressing today’s skills shortages and ensuring the workforce remains employable tomorrow requiresintegrating skills-based practices into every aspect of talent management. The 2025/2026 Skills Snapshot As the effectiveness of HR leaders in implementingskills-based practices increases, so does thematurity of integrating skills into core talentmanagement practices. For example, 65%of those ranking themselves as having “low In addition, HR leaders with high-performingskills-based talent practices report far greaterresults than those with low effectiveness, •Workforce agility/flexibility— 2.3 timesgreater impact •Productivity— 2.6 times greater impact •Attracting and retaining critical skills— 4.1 times greater impact •Employee development— 3.4 timesgreater impact •Career opportunities— 2.7 times greater impact AI moves from hypeto action Only 9% of organizations fail to seeimpact from AI, down from 45% in2023 — a significant shift. Nearly onein four (24%) already have a generativeAI workforce strategy, triple the Understanding the impact of AI isdifferent from having a strategy inplace. Get it right with help from Mapping skills to employees As organizations deepen their adoption of skills-powered talent practices, the ability to pinpointskills at the individual level is becoming essential.Most employers map skills based on currentjob roles (73%, up slightly fro