Skills-Based Recruitment

Put simply, skills-first hiring is a recruitment management strategy that prioritizes a candidate's skills over the means by which they were acquired, such as university degrees. This approach has been shown to achieve a five times higher success rate compared to hiring based solely on educational qualifications.

Why the recruitment industry is becoming more skills-focused

According to a report, over three-quarters of companies utilize some form of skills-based hiring when searching for new employees, with over half now conducting role-specific skills tests. In the United States alone, LinkedIn has seen a 21% increase in job postings that prioritize skills over specific academic qualifications, driven by the adoption of advanced hiring software.

The pandemic and other global events have changed the way employees work and the way employers look for new talent. In this precarious global economy, some may think that HR departments and recruiters can easily attract and retain top talent. However, companies need help attracting skilled workers right now. Thankfully, adopting skills-based hiring expands the pool of highly qualified candidates.

Skills-First Hiring vs. Soft Skills Hiring

Similar to skills-first hiring, soft skills hiring has also gained popularity and will likely become even more common in the recruiting industry.

However, skills-first hiring and soft skills hiring are two different approaches. Unlike soft skills hiring, skills-first hiring is a more comprehensive term that includes both hard skills and soft skills.

The Benefits of Skills-First Hiring

In this evolving job market, the benefits of skills-first hiring are obvious. Some of the benefits of skills-first hiring include:

Finding the Right People for the Job

The days of valuing degrees over skills are coming to an end in many industries. That's good news, because LinkedIn surveys show that companies that look at skills are 60% more likely to hire the right person with the right competencies. During the onboarding phase, companies evaluate whether their new hire is a good fit for the job and will mesh well with the rest of the team.

But the pressure is off when you know you've likely hired someone who can have a positive impact on the company culture. When people are happy at work, they're likely to perform better and want to stay in their current position, which inevitably makes the company more money.

A wider choice of employees

Currently, a whopping 75% of companies say they have trouble filling open positions. But that's where the magic of hiring for skills comes in.

Employers can hire people with the right combination of talents for the position, even if they lack formal schooling or conventional career paths. Research shows that a cashier has 68% of the skills needed for an office assistant and 79% of the skills needed for a customer service specialist. Additionally, removing job requirements like formal education reduces barriers and improves social mobility.

Retain your employees longer

Employees are less likely to leave your company when their skills are properly matched to their roles. People are always grateful to companies that give them a chance to prove themselves, especially when they've been given a chance at a role without formal training. In fact, workers without a typical four-year degree stay in their jobs 34% longer than those with one.

How to Start Using a Skills-First Hiring Approach

Write Skills-Based Job Descriptions

The number of managers hired without a four-year degree increased by 20% in 2019, showing how effective the skills-first approach is.

When writing a skills-first job description, it's a good idea to leave out any non-essential educational requirements, as people with the right skills but no degree may feel like applying for the job is a waste of time.

Instead, highlight the job responsibilities, describe what is expected of your potential new hire, and highlight the skills they'll need for the job. For example, someone without an English or marketing degree can be a highly skilled writer. Maybe they even write a blog as a hobby and already have everything they need to become a great copywriter.

Keep applications anonymous

When recruiters try a new hiring approach, they may mean well but still have unconscious biases that draw them towards applicants with degrees from established institutes or experience in famous companies.

But remember, this is a competency-based application. If educational background is not important in this case, there is no need to ask about it. Name bias is another factor to consider in this situation. According to Asana, name bias is dangerous because it is very easy to prefer Anglo-sounding names. This is not a good recipe for a diverse workforce characterized by different skills, experiences, cultures, and views.

If you think unconscious bias is problematic in your organization, consider using software that hides the applicant's name. Also, remember that competency-based applications are a relatively new idea, so give the applicant the benefit of the doubt if they don't meet the competency criteria 100%. If a candidate has the right innate skills for the role, they'll likely be able to learn additional skills on the job.

Use competency-based tests

The results of competency-based tests tell recruiters whether or not the candidate can do the job. There are many competency-based assessments that will tell you what you need to know, but a simple method is to ask someone to demonstrate that they can do the job.

If you're looking for a new copywriter to write for your fashion brand about a new men's summer collection, ask them to submit a blog post about men's summer clothing.

Their work will show you exactly what skills they have. Sure, they're great at writing, but are they also a good researcher? Have they taken the time to learn your brand's tone? Do they possess the skills to convert website visitors into customers? The results will help you decide whether or not to move the candidate forward to the next round.

Ask previous employers about the candidate's skills

Similar to the application process, you don't need to ask previous employers to provide details about educational qualifications. This can lead to bias, even at this late stage in the hiring process.

Instead, ask previous employers to confirm skills, how they've impacted the company, and what they've accomplished during their time there. Since most employees spend more time with their coworkers than their managers, it's worth asking your potential new hire for references from colleagues as well.

Adopting a skills-first hiring approach, supported by tools like IceHrm, can significantly improve your hiring process, diversify your workforce, and enhance employee retention.