the strategic edge of skills-based hiring for permanent roles

The traditional linear career path, from certification to entry-level positions and up the ladder, is becoming outdated in today’s market. Global economic instability, rapid technological advancements, and shifting expectations demand adaptability.

Workers are more likely to switch companies or industries, pursue upskilling and retraining, and embrace short-term assignments and new responsibilities. With ongoing talent scarcity, this dynamic landscape can be leveraged to your advantage when hiring for permanent roles through a skills-based strategy.

a few nuggets of data on the effectiveness of skills-based hiring

• 70% of employers agree skills-based hiring is more effective than resumes
• 74% of employers reduced cost-to-hire when using skills-based hiring
• 89% of organizations improved employee retention when hiring for skills

what is skills-based hiring?

Skills-based hiring shifts the focus from past experience to the specific abilities required for your open positions. This shift enables you to attract a ton of high-quality applicants. Skills-based hiring emphasizes a candidate’s capability to excel in a specific role, promoting a better alignment between the job and the ideal candidate. Skills-based hiring is particularly pertinent when hiring blue-collar operational managers where hands-on skills are often more valuable than formal degrees.

with a skills-based hiring strategy you can:

widen the talent pool

With more than 70% of Black, Hispanic, and rural workers not having four-year degrees, their valuable skills often go unnoticed due to the 'paper ceiling.' Emphasizing skills instead of certifications can provide these individuals with more opportunities.

reduce time-to-hire

Conducting basic skills assessments for candidates can help reduce the number of interview rounds, proving to be cost-effective for your hiring team.

retain top talent

Research shows that skilled employees without college degrees often remain in their roles up to 34% longer. With high turnover rates prevalent, upskilling programs foster internal mobility and help retain your best talent.

promote agility

With today’s economic uncertainty, a skills-based approach provides a roadmap for your employees to progress within their current companies. Plus, you can create deliberate pathways for existing skills while bridging any skills gaps for future roles.’

how to hire for skills

To move away from traditional hiring practices and focus on specific abilities, consider implementing the following steps.

identify key skills

Explicitly outline the technical and soft skills required in your job descriptions. Include transferable skills that candidates may have gained in other settings but are relevant to the role.

diversify recruitment sources

Expand your recruitment efforts beyond traditional channels by tapping into skills-specific organizations, platforms, and communities. Partnering with educational institutions can help you discover and develop talent through internship and apprenticeship programs. Moreover, employee referrals are a great way to find candidates who align well with your company culture and have the necessary skills.

use skills assessments

Skills assessments or tests are valuable tools you can use to evaluate a potential candidate’s actual skills and abilities in relevant areas. They can help you make more informed hiring decisions targeted to the roles you’re trying to fill.

interview for skills

Use behavioral questions and situational scenarios during interviews to measure a candidate’s practical skills and problem-solving talents. Request relevant examples from their previous experience to better understand their abilities.

promote upskilling

Don’t write off a promising candidate without an exact skills match. If they’re willing and able to learn, offer training programs and upskilling opportunities to bridge the gap between their existing skills and job requirements.

evaluate your process

Regularly review your skills-based hiring strategy to stay competitive. Analyze the performance of employees hired based on skills and adjust your approach as needed to ensure continuous improvement.

Skills-based hiring can represent a strategic shift in your talent strategy, leading to a more equitable and diverse workforce. This approach promotes fairness, efficiency, and innovation by identifying people based who have practical skills and can do them with passion. Passionate employees are productive, too. By narrowing your focus on specific abilities and skills, you can attract and retain talent that aligns closely with your organizational needs and cultural values. Book a call with our team of experts and gain insights on a comprehensive skills-based hiring strategy aligned with your business objectives.