Written in collaboration with Amélie Bazin, member of The Blog Team
A park in Luxembourg – Early morning
No matter the weather—rain or shine—Sarah and Daniel had a standing tradition: longtime friends since their university days, they met every Friday morning before work for a Nordic walk through the park, following a winding trail.
Today is no exception. The sun is out, the air crisp, and their footsteps create a steady rhythm against the pavement. Yet, despite the refreshing morning, their conversation is anything but light. Both work as HR managers—Sarah in a bank, Daniel at a European institution—and, despite their best efforts, work often finds its way into their discussions, along with the challenges that come with it.
“You sounded concerned on the phone last night. How are things at work?” inquires Daniel.
“Turnover’s getting worse. Another resignation email came in yesterday morning. That’s three this week,” sighs Sarah. I just can’t keep losing good people.”
“Let me guess. Same reasons? No growth, feeling stuck, looking for new challenges?” raises Daniel.
“Yep. And now managers are complaining their teams are disengaged. People feel like they’re just repeating the same tasks, day in, day out,” explains Sarah.
“So, basically, they’re running in circles—kind of like us right now.”
Sarah gives him a side glance but smirks.
“Funny. But that’s exactly it. They don’t see a path forward. They think their roles are cages, not stepping stones.”
“I know what you mean,” answers Daniel. “My department faced the same issue, but things are improving thanks to a total reshape of our workforce strategy”.
“Oh? What do you mean?” Sarah asks, her curiosity piqued.
“Well, it all started with a simple yet critical question: Are we equipping our workforce with the right skills for the future? Like many organisations, we had a traditional approach to learning—employees followed a predefined career path, and training was often generic, focusing more on job titles than on actual skills.”
Daniel continues: “Yet, in a rapidly evolving market, we realised this approach was limiting. Employees needed personalised learning pathways that aligned with their individual skills, career aspirations, and business needs. Our Learning Management System (LMS) wasn’t enough—it lacked the intelligence to guide employees toward relevant, skill-based learning opportunities. That’s when we decided to rethink our entire learning ecosystem”.
“Oh, that sounds incredibly promising!” exclaims Sarah. “Could you briefly explain what you implemented?”
“Sure! We basically followed the concept of a skills-first approach that links learning directly to workforce skills and career progression, supported by an AI-powered learning advisor to guide employees in their upskilling and reskilling journeys,” explains Daniel. “So, we reached out to PwC Luxembourg’s People, Experience and Change (PE&C) team for more detailed information and support in implementing our new LMS.”
“That makes sense so far. Please, tell me more,” says Sarah eagerly.
“Sure! We explained to them that our existing job architecture was outdated, relying on static job descriptions that failed to capture the evolving nature of work. Employees were being trained for roles rather than skills—and that was a major disconnect,” Daniel points out.
“But before even thinking about the system, the PE&C team urged us to consider a fundamental question: What skills does our organisation need, and how do they link to each role?” summarises Daniel.
“Very interesting. What happened next?” asks Sarah intrigued.
“We began transforming our job architecture, redefining roles with a skills-first lens. Each position was mapped to a core set of skills, ensuring that learning and career development were no longer based on rigid job titles but driven by evolving capabilities. And did you know that AI has become a key catalyst for skills-based organisations?”
“I have noticed that AI is changing the way companies think about skills and talent. It’s helping companies identify their employees’ current skills, understand what they need, and even predict which skills will be important in the future,” highlights Sarah.
“Exactly! AI-driven platforms can quickly analyse skills across an organisation, spot gaps, and even recommend ways to bridge them. It’s making workforce planning much smarter. For example, the PE&C team told me PwC Luxembourg is actively using AI to track industry trends and predict talent shortages. This helps them plan ahead and ensure their teams have the right skills for the future,” explains Daniel.
“Right! It also makes internal job mobility easier, I suppose. AI-powered platforms can match employees with projects or roles that fit their skills and career goals. That way, people can grow within the company instead of looking elsewhere,” interjects Sarah.
“Yes, that’s a win-win! Employees get better career opportunities, and companies keep their best talent. Plus, it makes the workforce more agile, which is so important these days,” concludes Daniel.
“Totally. I read that AI is also transforming how people learn at work. Instead of generic training, companies can offer personalised learning paths based on an employee’s skills and career goals. I saw in the PwC Luxembourg’s GenAI Business Survey that 71% of financial sector respondents plan to use GenAI for knowledge management and access. That means employees can find the right learning resources exactly when they need them rather than wasting time sifting through tons of irrelevant materials!” exclaims Sarah enthusiastically.
“Precisely! AI-driven intelligent learning platforms provide customised upskilling opportunities based on an individual’s current and future skill needs. AI-powered advising tools even track skill development and suggest real-time coaching. It makes career growth more structured and tailored to each person,” asserts Daniel.
“Sounds like AI is really making companies more skills-focused and agile. It’s not just about job titles anymore—it’s about what people can actually do and how they can grow,” adds Sarah.
“Indeed! And that’s why businesses using AI for workforce planning and learning will be way ahead of the game in the future,” concludes Daniel.
Sarah feels truly grateful for how Daniel helped her see things from a different perspective. Their conversation has convinced her, and she no longer feels stuck. As soon as she gets to the office, she will book a meeting with her HR leader to discuss the key takeaways she’s just learned.
With renewed energy, Daniel and Sarah pick up the pace, with Sarah moving forward with greater clarity and direction.
From strategy to implementation: a roadmap for organisations
Shifting to a skills-based model requires more than just AI-powered insights—it demands a structured approach to integrating skills-first principles into workforce strategies. Organisations can take the following steps to transition successfully:
Step 1: Define a skills taxonomy and job architecture transformations- Move beyond outdated job descriptions by designing job architectures that prioritise skills over roles;
- Use AI-powered analytics to map existing skills and identify future needs dynamically.
Note: PwC Luxembourg works with organisations to develop skills-first job architectures, embedding AI insights into workforce planning.
- Use intelligent AI-powered learning platforms to reskill and upskill employees at scale;
- Ensure that learning programmes adapt in real time to employee career paths and organisational needs.
- Foster a flexible workforce by dynamically matching employees to tasks, projects, or cross-functional roles based on their evolving skills;
- Enable a culture of continuous learning and career growth through AI-driven recommendations.
- Track skills development Key Performance Indicators (KPIs) to measure progress and workforce agility; and
- Use AI-powered insights to refine talent strategies, ensuring alignment with business objectives.
Adopting AI-driven skills intelligence enables organisations to create a more agile, skills-focused workforce. The key isn’t just recognising the shift—but taking the right steps to implement it effectively. The future of work is skills-based, and AI is the accelerator that will bring it to life.
If you find yourself in a similar situation as Sarah’s—grappling with high turnover and workforce challenges— our People, Experience & Change team can help you build a more agile workforce, ensuring your organisation adapts to evolving business needs.
They can also support you in implementing a skills-based job architecture, using an AI-driven platform that aligns employee skills with project demands on a global scale, fostering internal talent mobility.
What we think
The shift to a skill-based organisation is not just an HR transformation—it’s a fundamental business shift. AI enables us to map, develop, and deploy skills in ways we’ve never been able to before, unlocking workforce agility and long-term success.
We believe that skills are a key component of a workforce strategy that enables your organisation to achieve better return on investments in people, processes, and technology. By organising talent practices around skills, you will unlock new opportunities for internal mobility and career development, while ensuring your resource allocation is fit for the future.
