SAP SuccessFactors AI can help you identify hidden competencies in your team that neither employees nor managers recognize.
In today’s business world, where competition for talent is fierce and where 44% of employees will need to learn new skills in the next five years (2024, World Economic Forum), identifying and developing employee competencies is key to organizational success. Yet many companies face the challenge of not recognizing the full potential of their candidates and current teams. This is where artificial intelligence (AI) comes in, designed to uncover hidden skills that might be going unnoticed by both managers and employees themselves.
The power of hidden skills
We know that hidden competencies are those skills and knowledge that employees possess but are not actively used in their current role. These competencies could include previous experience in other industries, skills developed through hobbies or personal interests, or capabilities that have not yet been fully exploited in the work context.
Failure to identify these competencies in time represents a lost opportunity for both the employee, who may be frustrated because they feel stuck, and the organization, which needs new skills and fails to capitalize on potential. Companies may be missing the opportunity to assign their employees to roles where they could excel, increase their commitment and contribute more meaningfully to business objectives.
SAP SuccessFactors AI: A Transformative Solution
SAP SuccessFactors has integrated artificial intelligence tools designed to analyze employee data in a deep and meaningful way. These tools use technologies such as machine learning and natural language processing to identify patterns, competencies, and potential not evident in traditional HR data.
For example, SAP SuccessFactors’ Talent Intelligence Hub is an advanced solution that centralizes skills and competency data. This system can correlate information from different sources, such as job descriptions, assessments, and external data, to build a complete profile of each employee. In doing so, it can reveal skills that traditional managers or systems might have overlooked.
Case studies: identifying and harnessing hidden talent
Let’s imagine a concrete example: an organization looking to develop a digital transformation program. Using SAP SuccessFactors AI, they discover that several employees have certifications in areas such as data analytics or agile management, acquired in previous jobs or as part of their ongoing training. With this information, the company can leverage features such as Dynamic Teams to create multidisciplinary teams to lead change, with agile methodologies and OKRs, reducing the need to outsource and speeding up the implementation process.
Another common case is identifying employees with emerging leadership skills. Through AI, it is possible to analyze comments from performance evaluations, 360 evaluations, suitability assessments, potential assessments, and data from interactions with internal platforms to detect patterns that indicate leadership competencies. This allows managers to propose personalized development plans to prepare these employees for roles of greater responsibility and avoid falling into situations like the one described by Carlos Rosales in his book “People buy people”1, we want to avoid going “from star salespeople to terrible [Sales] Managers.”
Key benefits of AI in skills management
1. Comprehensive view of talent: By centralizing and analyzing data, companies obtain a more complete and accurate picture of the skills of their employees and their candidates and can direct their efforts toward relevant activities.
2. Informed decisions: AI provides data-driven recommendations, helping managers make better decisions about role assignments and development plans. According to a study (2024, Deloitte), 70% of high-performing organizations are investing in HR intelligence, using data to improve decision-making.
3. Fostering Engagement: By recognizing and leveraging hidden competencies, employees feel valued, which improves their engagement and job satisfaction. A Deloitte report from October 2024 indicates that 71% of organizations use AI-based tools to analyze employee engagement,
contributing to more effective strategies to increase staff motivation and retention.
4. Cost savings: Reducing the need for external hiring and optimizing the use of internal talent has a direct impact on operational costs. Implementing AI in HR can result in a 45% reduction in hiring costs, according to a PwC study published in November 2024.
5. Process efficiency: Companies that implement AI have reported a 90% reduction in hiring time, significantly streamlining candidate selection (Deloitte). They have also seen a 30% increase in productivity by identifying and developing hidden skills (LinkedIn).
6. Improved retention: The use of advanced technologies in talent management has allowed us to reduce turnover by 25% during the first 90 days of employment (2024, Randstad RPO).
How do we begin this journey towards incorporating AI into our processes?
For companies interested in unlocking the potential of their team, the first step is to have clearly defined processes; second, to have those processes in place and people familiar with those processes; and third, to implement the right tools that help ensure success. If you don't have processes defined, SAP SuccessFactors offers an integrated ecosystem with predefined processes, competency libraries, and other attributes that will make it easy to identify and develop competencies. In addition, our SAP SuccessFactors experts are available to help organizations configure with best practices and also customize to their specific needs.
In an environment of constant change, companies that adopt innovative technologies like SAP SuccessFactors AI not only gain a competitive advantage, but also create an organizational culture that values and develops talent holistically. Are you ready to discover your team’s hidden competencies and take your organization to the next level?
