By Kady Marriott, Associate Partner at WithYouWithMe
Organisations are grappling with the challenge of building and retaining a workforce equipped with the necessary skills to meet current and future requirements. With demand surpassing supply and driving up wages, conventional experience-based hiring methods are no longer adequate.
Globally, we place high value on the CV, including what school you went to and what your last job was, as a predictor of someone’s suitability for a role. Naturally, this relies heavily on a candidate’s ability to encapsulate their history into a two-page document. Isn’t this the equivalent of marking our own homework? And to add to this, even the best CVs can struggle to get past automated filtering bots, meaning great people miss out on their best opportunity to shine – an interview.
Overlooked and underserved areas of society including military veterans, neurodivergent individuals, refugees, military spouses and women are often overlooked for roles because of these outdated recruitment methods.
It’s time that we prioritised a skills-first approach to recruitment.
What is skills-based hiring?
Skills-based hiring is a progressive approach to recruitment that prioritises a candidate’s demonstrated ability, which not only includes the skills they’ve already learned but also their aptitude and the skills they have the potential to acquire, relevant to where the business is headed.
Instead of relying solely on CVs and credentials, skills-first hiring uses data-driven assessments, aptitude tests, and evaluations to identify a candidate’s relevant skills and suitability for a variety of roles. By emphasising capabilities, a skills-first approach is able to reduce unconscious bias in the hiring process, opening up opportunities to a more diverse pool of candidates, and enabling organisations to find the best fit for each position based on a candidate’s actual skills and potential to succeed.
Importantly, this also opens up a whole new world of possibilities. The ability to pursue roles and careers that they didn’t think existed or were within reach. This broadens the talent pool by showing people what they’re capable of, the types of projects and passions it could lead to and crucially, how to get there. The art of the possible in a whole new light.
The benefit of skills-based hiring
According to a recent LinkedIn report, employers witness talent pools expanding nearly tenfold when they adopt a skills-first hiring strategy. This surge in potential talent is particularly crucial in an era where digital skills are in high demand.
In addition, Harvard Business School and Accenture recently collaborated on a study, revealing that 88% of hirers admitted to rejecting highly skilled candidates solely because they lack traditional credentials like specific job titles or university degrees. This situation is deeply concerning as it places an unjust burden on minority communities who may lack the financial means to access traditional education, or individuals who thrive through hands-on learning rather than traditional classroom settings.
Despite the evident advantages of a skills-first approach, including broader talent pools, enhanced diversity of thought, and increased opportunity equality, the methodology is yet to be utilised on a wide scale. To effectively implement a lasting and impactful skills-first strategy, organisations need to consider more than just a shift in HR practices; it requires a broader, more thoughtful change management program.
There are five key aspects of an impactful skills-first approach to support equal, fair and effective talent acquisition and retention.
Implement organisation-wide skills mapping
The first crucial step is to establish a universally agreed-upon skills framework across the organisation. This involves standardising the required competencies for each role and at all levels, which can be done through an existing framework or adopting the globally recognised Skills Framework for the Information Age (SFIA). Creating a skills taxonomy provides a common language throughout the skills management cycle that defines the skills and competencies required for organisations to succeed. Businesses can then assess performance to get a clear view of the existing skills and identify gaps and opportunities that require filling.
Remove the CV barrier
Once skills gaps are identified, the next step is to address them effectively. Whether seeking internal candidates through upskilling or looking to external sources of talent, a skills-first approach means moving away from traditional hiring methods that rely heavily on employment history and formal qualifications. Here, the limitations of CVs are two-fold, if previous roles have required a CV and therefore relevant experience, the particular candidate will become repeatedly overlooked.
Unless the spiral is ended.
Instead, job descriptions should be streamlined to specify the particular skills required and their corresponding proficiency levels. This simplification is made possible by aligning the requirements with the skills framework set out above. By assessing candidates on their current skill set and their potential to excel in the desired areas, organisations can build a high-performing workforce.
Use data to measure fit-to-role
To measure fit-to-role accurately and objectively, organisations can implement psychometric and aptitude assessments. By using these assessments, organisations can mitigate the inherent biases associated with CV-led hiring and other traditional recruitment methods. This data-driven approach promotes equal access to opportunities for individuals from diverse backgrounds and facilitates consistent hiring decisions based on objective data.
Launch rapid upskilling programs
When candidates demonstrate potential for a role but lack certain essential skills, organisations can implement rapid upskilling programs to bridge the gap and achieve job readiness. A skills-first approach is not merely about acquiring talent that comes ‘ready-made’; it also involves nurturing individuals to succeed in high-demand areas and addressing broader workforce skills gaps.
The growing accessibility of high-quality online learning, certification programs, apprenticeships, and other training options enables organisations to cultivate essential skills in their current employees and tap into more extensive talent pools. These cost-effective, accelerated internal programs are essential for constructing a workforce prepared for sustained future growth, benefiting both individuals and the overall business.
Support employee retention through development
Referring back to LinkedIn’s ‘Skills-First’ report, it was highlighted that the employees who made internal moves within their organisations after two years had a 75% chance of remaining with the company, compared to 56% for those who hadn’t. Moreover, research indicates that organisations that excel in enabling internal mobility retain employees for an average of 5.4 years, almost twice as long as organisations that do not.
Providing employees with opportunities to learn and grow is crucial for preparing businesses for the future while ensuring employee engagement. Taking things to the next level, organisations have the opportunity to create visual career pathways, akin to a GPS, illustrating the diverse routes to success for their talent. This proactive approach enhances both capability and performance, empowering employees not only to advance vertically but also to pivot across roles as the organisation’s needs evolve. In doing so, it enriches their skillset and elevates their overall value.
The persistent challenges organisations encounter in addressing digital skills gaps and keeping up with swiftly evolving technologies stress the need for a fresh perspective on talent acquisition and development. Embracing a skills-centric strategy is the path to progress. Through proactive measures to address vital gaps and create robust strategies, organisations can proactively fortify their workforces, thereby unlocking the untapped potential of marginalised segments of society.
In doing so, organisations not only bolster their capacity to navigate the digital landscape but also open doors to the many individuals who may have previously been overlooked, thereby fostering inclusivity, diversity, and a brighter future for all.
About the author
Kady, is a dedicated veteran spouse who is committed to assisting typically underrepresented individuals in their pursuit of employment. She firmly believes that every individual harbours a unique purpose and a valuable set of skills essential to prospective employers and in her role as Associate Partner at WithYouWithMe, is committed to empowering individuals to unleash their full potential through support and training.
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