The New Era of Career Transitions: A Skills-First Approach

Career transitions are now career transformations, and I’ve seen firsthand how a skills-first approach, AI-driven career pathing, and strategic workforce planning can help companies build resilience, save costs, and support employees in meaningful career reinventions. Among LHH clients, we have seen 58% of laid-off employees moved into entirely new roles—marking a significant shift from the past, when they were more likely to take on similar roles at different companies.

I recently had the privilege of speaking at SHRM Talent 2025 on career transformation.

Here are my key takeaways:

• Skills-based hiring saves organizations money: Redeploying internal talent instead of hiring externally can save organizations up to $136,000 per employee! Investing in upskilling, reskilling, and redeployment benefits both organizations and their employees.
• Transferable skills matter: Shifting the focus from job titles to skills enables organizations to align employees with new roles, increasing adaptability and reducing the need for expensive/costly? external hiring.
• AI as a career transformation tool: AI offers organizations more efficient career planning strategies, helping employees navigate career changes by aligning their skills with market demands.
• Career transformations as reinvention: More than ever, career transformations are about supporting individuals in reinventing their paths, giving them confidence and long-term success.

An underlying question that emerged throughout the discussion was whether there will be an end to 'unprecedented times' or if the future is simply different from what we expected.

At LHH, I believe that waiting for things to go back to "normal" is not an option. Instead, I’m focused on creating the world we want to live in—one where businesses and employees are resilient and adaptable. I encourage you to adopt this mindset and building processes that easily adapt to change.

In talent management, one of the most effective ways to build adaptability is through skills-based hiring, which enables organizations to redeploy existing employees—already familiar with the company culture and dynamics—into roles that align with current needs. This approach not only preserves institutional knowledge but also significantly reduces costs associated with external hiring. According to research by The Adecco Group and The Boston Consulting Group, companies can save up to $136,000 per employee by investing in upskilling and reskilling and redeployment instead of opting for layoffs and rehiring externally.

Workforce Agility: Building Long-Term Resilience

A skills-first mindset focuses on what people can do, not just their job titles. Many workers are pivoting into new industries or roles, but traditional job ladders don’t always show how their skills apply in different contexts. By emphasizing transferable skills, I’ve seen companies better align employees with new roles and increase their ability to adapt to changing business needs.

For example, if an organization decides to eliminate a copywriter position due to AI advancements in machine learning, rather than opting for a layoff, I advise leaders to consider the valuable skills a copywriter brings that can be redeployed elsewhere in the company. For example:

• Project Management – Copywriters are skilled at managing multiple deadlines and tasks simultaneously, making them highly proficient in time management and prioritization.
• Training and Onboarding – With their ability to simplify complex ideas, copywriters can transition into roles where they create training materials, manuals, and internal communications to support new hires.
• Branding and Marketing – Having a deep understanding of brand voice, tone, and messaging, copywriters can easily move into branding and marketing roles to shape and communicate the company’s identity across various platforms.

The biggest opportunity in talent management today is to redefine success—not just by performance, but by adaptability. I believe we need to foster a culture where employees are continuously prepared for new challenges, regardless of what the future holds.

Bridging the Talent Gap: The Role of Career Transformations

It's not uncommon for companies to undergo layoffs while also actively hiring to fill critical roles, creating a challenging paradox. As businesses scramble to address talent shortages, it’s easy to focus solely on external hiring. However, career transformations shouldn’t be seen in isolation from talent acquisition—they are two sides of the same coin.

During talent shortages, companies often rush to replace employees, but a more strategic approach is to redefine roles and consider internal candidates with the right support. By focusing on essential skills and adjusting role requirements, I’ve helped companies create more opportunities for displaced employees and maximize the talent pool you’ve already invested in.

It’s also important to balance speed with sustainability. Hiring in a rush to fill an open role may feel like the fastest solution, but it can lead to mismatches that cost the company more in the long term.

AI: Guiding Workers Toward New Career Paths

Artificial intelligence is at the heart of reinventing career transformations. Rather than continuing to rely on old methods that can feel overwhelming, AI offers a more efficient way forward. It doesn’t just help people find jobs—it guides them toward roles that are aligned with their skills and the demands of the job market.

For example, tools like LHH Career Studio’s Career Canvas help job seekers compare their existing skillsets to real-time hiring data, revealing career opportunities they may not have considered. This is especially valuable for mid-career professionals who suddenly need to pivot after years in a particular field. AI doesn’t just show them what skills are in demand; it also highlights new, viable career paths.

By offering more precise career guidance, AI makes reskilling efforts more focused and purposeful. Instead of simply learning new skills for the sake of it, workers are equipped to meet the needs of the market.

And perhaps most importantly, AI keeps job seekers engaged. Transitioning to a new role can be emotionally taxing, but with tools that provide progress tracking and real-time feedback, job seekers can see that they’re making headway—even when the process feels slow.

The Power of Reinvention

Career transformations today are about more than just finding a new job—they’re about reinventing a career path. When someone loses a job, it’s not just a financial loss—it’s a personal one. Workers are left questioning their value and what their future holds. Exceptional human care is at the core of every career transformation. It’s not enough to simply help someone find a job; I believe we must support them through the emotional and professional journey to ensure long-term success.

This is where HR leaders can make a real impact. By helping displaced employees map their existing skills to in-demand roles and providing the right support throughout their transition, companies have an opportunity to build stronger employer brands, retain valuable institutional knowledge, and create better outcomes for both their people and their business.

The goal is not just to help people find new jobs—it’s to help them succeed in their careers for the long term.

Exceptional Human Care for Every Career Transformation: At LHH, we combine exceptional human care with the resources and innovation needed to support and guide individuals through career transformations. With unwavering support, we inspire them to take bold steps into their next chapter, no matter what challenges they face. Learn more.