HR tech vs. skills tech: What is the difference? 

Confused about some of the tech stack terminology you've heard?

HR tech is an all-encompassing term used to optimize and manage HR processes throughout the entire lifecycle, including recruitment, onboarding, performance management, development, and more. 

Skills tech, however, zones in on the specific tools used to support employee learning and development, such as skills assessment and learning management systems. 

There is a degree of overlap, but essentially skills tech is a specific area of your HR tech stack that will enable employees to acquire new skills and advance their careers. 

Why should you capture skills data?

Skills tech and the data it presents are essential in every HR process. This information provides HR teams with an overview of the current skillsets within their organization, informing: 

  • Who we hire: if a candidate has the necessary skills to add to the team’s existing skill set and close any known skills gaps. 
  • How much we pay them: the candidate or employee’s position within the salary band based on their skills and competencies.
  • Who we promote: if an employee has upskilled and is now eligible to progress into a new role.
  • How and where we deploy skills across the organization: leaders can distribute relevant talent into new roles or specialist projects based on skills. 
  • How we grow our business: tracking skills enables decision-makers to plan expansion into new business areas or markets.