The rise of skills-based hiring

Skills-based hiring has emerged because of the evolving nature of work and the growing skills gap in the labour market. As the world of work evolves and transforms, the need for new and complex skills rises while talent shortages mount. In traditional methods of recruitment, skills-based hiring flips this approach by focusing on what candidates can actually do and assessing job applicants based on relevant and transferable skills irrespective of educational or professional background.

The advantages of skills-based hiring

Skills-based hiring gives a range of benefits for your business in creating a more capable, adaptable and diverse workforce to help drive innovation and business success. Where recruitment processes support skills-based hiring-the procedure of hiring based on abilities and competencies rather than traditional qualifications-your business can:

Find the best talent for your business needs, regardless of their background or experience. With skill-based hiring, the talent pool opens extensively to find capable candidates who may otherwise be rejected because of their educational background or work experience. This makes it possible for one to recruit a wider range of candidates, including career changers who have valuable skills.
Save time and money by reducing unnecessary screening criteria and switching to faster and more effective assessment tools. Skills-based hiring can make it easier for your business to focus on skills rather than credentials that may not matter.
Improve diversity and inclusion by reducing bias based on education, experience, or other factors. Skilled-based hiring can help your business create a more fair and inclusive hiring process where irrelevant factors or biased factors are at a minimum for the role.
Improve employee retention and engagement with candidates who are more adaptable to the needs of your company and fit better into your company culture and values. This kind of skills-based hiring can help your business hire candidates who are more likely to stay and perform well in their roles because they have the hard skills to do the job, the motivation to learn and grow and fit within the culture and values of the company. The skills-based hiring model can also help your business create a more positive and supportive work environment, where one values the employees more for their skills and achievements rather than credentials or the resume.
Boost innovation and productivity by hiring candidates who have the skills to solve problems, learn new things, and collaborate with others. Skills-based hiring can also help your business foster a more innovative and productive work culture, where employees are encouraged and empowered to use their skills to create value and impact for your business and your customers.

Adopting skills-based hiring in the hiring process

Skills-based hiring is not a one-size-fits-all approach; rather, it’s highly adaptable, flexible, and can easily be fit to meet your roles, industries, and business goals. That said, here is the general step your business might want to consider in terms of implementing skills-based hiring into their pre-existing recruitment process:

Identify the essential skills and competencies for the role, based on the job description, your business goals, and the market trends. These may include technical, soft, or cross-functional skills, as well as the ability to adapt to industry changes.
Evaluate and compare candidates based on their skills rather than education or work history. A structured and standardised evaluation process should be used to assess candidates’ skills and competencies objectively and on a consistent basis against the job description. Efforts should be made to avoid irrelevant or biased factors, such as the prestige of a degree or the years of work experience, in order for a fair comparison based on the required competencies for the job.
Make final hiring decisions by focusing on the candidates who have the most relevant and transferable skills for the role, regardless of their background or experience. Selection should be based on a data-driven and evidence-based approach where every decision is supported by an objective assessment of competencies and skills. Set clear criteria for selection that are identified and communicated explicitly to candidates to ensure the process is transparent.
Provide feedback and learning opportunities to the candidates/employees for development and skill enhancement. Feedback shall be provided constructively and should be actionable with respect to performance, potential, strengths, and weaknesses. In addition, this may be achieved through some learning and development opportunities like training, mentoring, coaching, or career planning to acquire and enhance the skill and competencies.

Can outsourcing help?

By focusing on the skills and competencies that are relevant and transferable for the role, you can widen your talent pool, reduce bias, improve retention and engagement, and enhance performance and productivity.

However, implementing a skill-based hiring strategy can be challenging and time-consuming, especially if your business lacks the expertise to do so. This is where an RPO provider can help. An RPO provider can deliver end-to-end solutions for managing your entire recruitment process, from designing and conducting skills-based assessments to evaluating and comparing candidates based on their skills and competencies. They also offer feedback and development opportunities for both candidates and employees, while overseeing your selection and hiring process.

By partnering with an RPO provider, your business can leverage their experience and knowledge, and focus on their core activities, while ensuring that you’re hiring the best talent for your roles.

Discover more about our Recruitment Process Outsourcing (RPO) Solution or contact us at hello.uk@flexhuisglobal.com

August 27, 2024

The rise of skills-based hiring

The advantages of skills-based hiring

Adopting skills-based hiring in the hiring process

Can outsourcing help?

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