Singapore Business Leaders Express Concern Over Workforce Skills Readiness: Workday Report

Singapore, March 20, 2025 – A recent study by Workday, Inc. (NASDAQ: WDAY), a leading AI-driven platform for people and money, has highlighted growing concerns among Singapore business leaders regarding workforce readiness. According to The Global State of Skills report, 43% of Singapore leaders are apprehensive about future talent shortages, while only 30% are confident their organisation possesses the necessary skills for long-term success.

As industries rapidly evolve with artificial intelligence (AI), the demand for new skill sets is reshaping talent management strategies. However, many organisations still lack comprehensive insight into their workforce capabilities—only 46% of Singapore business leaders report having a clear view of their employees’ current skill sets.

The Shift Towards Skills-Based Hiring

Traditional hiring practices centred on job titles, degrees, and previous employment histories are proving insufficient in addressing modern talent gaps. To remain competitive, organisations are accelerating the adoption of skills-based strategies, prioritising capabilities over credentials.

The report found that more than one-third (36%) of Singapore organisations have already implemented a skills-based hiring approach, with an additional 24% planning to transition within the next year. This shift is seen as essential for driving economic growth, increasing workplace productivity, and fostering innovation—an approach supported by 64% of Singapore business leaders.

AI as a Catalyst for Workforce Transformation

AI is playing a pivotal role in supporting the transition to a skills-based workforce. The study reveals that 52% of Singapore business leaders view AI as an essential tool in streamlining repetitive tasks, thereby enhancing workforce efficiency and adaptability.

“We are in the age of AI, where the rules of employee engagement and the skills required to succeed are completely different,” said Fabio Tiviti, Group Vice President, APAC & Japan Field Operations, Workday. “That said, the human element has never been more essential. Organisations in Singapore will need to fully embrace a skills-first mindset to address the talent shortage challenges in today’s workforce. This will allow organisations to truly unlock the full potential of AI and ensure the workforce is well-equipped to tackle the challenges of tomorrow.”

Overcoming Challenges in Skills-Based Workforce Transition

Despite the growing momentum behind skills-based strategies, significant challenges remain. The report highlights that 52% of Singapore leaders cite the time required to reskill employees as a primary obstacle in transitioning to a skills-based organisation. Additionally, 49% report resistance to change as a key barrier.

Addressing these challenges requires more than just technology; it demands a cultural and operational shift. Effective communication of the benefits (cited by 58% of respondents) and robust change management strategies (noted by 46%) are critical in ensuring the successful adoption of skills-based approaches across organisations.