The Rise of Skills Based Hiring in the Talent Attraction Process
Skills-based hiring is increasingly used by major companies such as Google, Apple, IBM, Mastercard and Bank of America. This trend has big implications for how colleges and other educational programs prepare people for jobs and careers.
Hiring employees based on demonstrated skills, not just educational attainment, will lead to a more diverse workforce and provide opportunities for people with workforce skills but no college degree or different industry experience to obtain better-paying jobs.
While degrees will remain an important credential, decision makers may begin to tackle these challenges by offering more career-focused skills training in their programs to help graduates enter in-demand jobs with more relevant & applicable skillsets. Hiring based on skill is5 times more predicative of future job performance than education hiring and 2.5 times more predictive of work performance than experience.
5 Reasons Why Skills Based Hiring is on the Rise
The current tight labour market and talent shortages
Cyclical post-covid reset of the jobs market
Decline in college enrolments worldwide
Degree criteria lending towards human bias and exclusion
The rising popularity of STARS - Skilled Through Alternative Routes
10 Benefits of a Skills Based Hiring Approach
Attracts more candidates for job openings
Expands the talent pool
Improves diversity hiring
Creates higher quality candidates
Accelerates time to hire
Reduces hiring costs
Increases equity and inclusion
Increases longer term staff retention
Helps to place harder to fill roles faster
Reduces degree inflation