Abstract: Organizations are increasingly moving away from traditional job-based hiring and development models toward skills-based talent management approaches. This shift reflects changing workforce expectations, technological disruption, and the need for organizational agility in volatile business environments. This article examines the organizational and individual consequences of adopting skills-based frameworks, drawing on research in organizational psychology, human resource management, and change management. Evidence suggests that skills-based approaches can improve talent mobility, development effectiveness, and organizational adaptability when implemented thoughtfully. The article presents evidence-based interventions including transparent skills frameworks, internal mobility infrastructure, capability-building investments, and technology-enabled talent systems. Three pillars for long-term success are explored: psychological contract recalibration, distributed talent stewardship, and continuous learning ecosystems. Practitioners will find actionable guidance for navigating this transition while maintaining trust and performance.

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