Only 18% also said they measure employees’ skills throughout the talent development journey.

“That means most organisations are guessing when it comes to capability,” the report read. “Leaders think they have the skills to deliver on big initiatives, only to find out mid-project that their teams can’t execute.”

This skill overstatement can have a variety of results, including worsening skill gaps (36%), reducing productivity (34%), and increasing manager stress (31%).

“Leaders cannot close gaps they cannot see. Skills intelligence—consistent, reliable measurement tied to strategic goals—is the foundation for aligning workforce capability with business outcomes,” the report read.

A wake-up call for organisations

Additionally, the report revealed that current talent strategies and development programmes are also outdated and disconnected from workplace outcomes.