There’s no way around it: to remain competitive, businesses must update their hiring strategies in 2022. Traditional hiring tactics are no longer a realistic solution for satisfying labor demands, and necessitates a shift toward skills-based recruiting.
As one of the determining aspects of work performance, skills-based recruiting prioritizes individuals’ technical abilities and core competencies over degrees or credentials. This approach requires recruiting teams to specify the needed and desired talents for a position and objectively evaluate those skills to reduce bias in the hiring process.
Let’s review some of the benefits of skills-based hiring strategies:
Eliminating Degree Inflation
Skills-based hiring doesn’t mean excluding college graduates from consideration or reducing any entrance hurdles. Instead, it’s about separating the skills for which the degree is intended to be a proxy. As a result, both degree holders and those with alternative skills can be considered for the position. This promotes economic opportunities for everybody and broadens the talent pool available to businesses.
Larger Talent Pool with More Diversity
Skills-based recruiting also assists firms in bringing on a more diverse and inclusive staff, providing a comprehensive picture of employees that incorporates talent and skill into how companies build their teams. It’s also an opportunity for employers to fill today’s talent gap in a way that promotes real, systemic change. When we focus on diversity and growth simultaneously, we are compelled to reconsider how we welcome individuals into our companies.
Another benefit of skills-based recruiting is that it might help your business strengthen retention. According to LinkedIn, employees who do not have a four-year degree stay 34% longer than those who do. This indicates that employees are more involved and believe the organization is banking on their success. Leadership’s commitment to employee learning and development is no longer optional. It’s what employees want, and is what leaders must provide in order to remain competitive. Up-skilling is not about checking off a list. Rather, it’s a long-term strategy for remaining relevant by continuously learning new abilities.
It is crucial to evaluate your organization’s future needs and create a roadmap that involves identifying skills that the business will need as it grows. For example, employers might fill vacancies faster and save money on training and onboarding by defining roles based on skills rather than a strict set of job descriptions that focus on finding candidates the traditional way. A degree or credential does not guarantee that candidates have obtained the hands-on experience to do the job.