Check out the previous issues of the Workplace Intelligence Insider newsletter below and subscribe now to get new articles every Monday.
Skills-based hiring, also known as competency-based hiring, is a recruitment approach that prioritizes an applicant's skills and knowledge over their academic background or work experience. In recent years, it has gained widespread popularity among employers and is now considered a leading trend in the world of recruitment. Recent research by Remote shows skills-based hiring is up 63% in the past year as more employers value experience over academic qualifications. In addition, a SHRM study found that 79% of employers say skills assessments are just as or more important than other hiring criteria.
The primary reason behind the growth of skills-based hiring is the changing nature of work. With technology constantly evolving and the job market becoming increasingly competitive, employers are looking for candidates who have the necessary skills to perform the job and adapt to new challenges. In this context, an applicant's academic qualifications and work experience, while important, are no longer the sole determining factor in their employability.
Another reason for the popularity of skills-based hiring is the increasing demand for job-ready candidates. Employers today want employees who can hit the ground running and make an immediate impact, and skills-based hiring provides them with the assurance that the candidate they are hiring has the necessary abilities and knowledge to do just that. This results in a more efficient and cost-effective recruitment process, as employers no longer have to invest time and resources in training new hires.
In addition, skills-based hiring allows employers to attract a wider pool of candidates, including those who may not have traditional backgrounds in their industry. This helps to create a more diverse and inclusive workplace, where individuals from different backgrounds can bring their unique skills and perspectives to the table. The Burning Glass Institute analyzed millions of online job listings and found that the number of jobs requiring a college degree dropped from 51% in 2017 to 44% in 2021. And a survey by LinkedIn shows that 69% of professionals think verified skills are more important than a college degree.
Moreover, skills-based hiring also aligns with the evolving needs of the workforce. As the job market becomes more gig-oriented, with a growing number of workers seeking freelance or contract-based employment, skills-based hiring allows them to showcase their capabilities and find work that is tailored to their skills.
Despite the downsides, the trend toward skills-based hiring is likely to continue as employers look for the most effective and efficient way to find the right candidate for the job. Skills-based hiring is becoming more popular among employers because it addresses the changing nature of work, the increasing demand for job-ready candidates, the need for diversity and inclusion in the workplace, and the evolving needs of the workforce. As the job market continues to evolve, it is likely that skills-based hiring will only become more prominent in the years to come.
Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!
Check out the previous issues of the Workplace Intelligence Insider newsletter below and subscribe now to get new articles every Monday.
News Spotlight Big tech's commitment to reskill the workforce. Google, IBM, Intel, Microsoft, and others have formed the AI-Enabled Information and Communication Technology Workforce Consortium to help those who have lost or will lose their jobs to AI to either upskill or reskill them so they can reenter the workforce (ZDNET). Remote work is the secret to closing the gender gap. When women were able to work remotely during the pandemic, they were able to better balance their work and family...
News Spotlight Workers plan to look for a new job this year. Most Americans are planning to look for a new job in 2024 because they desire a higher income (CNBC). Quiet cutting is the new workforce trend. Employees report seeing their company reduce someone’s job role, so they’ll quit on their own (Fortune). Young workers skip corporate to enter the trades. Gen Z’s are going into the trades because of rising pay, job security, and new technologies (Wall Street Journal). Stat of the Week Most...
News Spotlight White House admits jobs will be automated by AI. The White House now says that 10% of U.S. workers are in jobs that are most at risk due to the disruption caused by AI (CNN). Employers are hiring etiquette coaches. 60% of bosses are hiring etiquette coaches to help remote workers better transition to office environments (Business Insider). Childcare benefits take center stage. Over half of companies say that child-care benefits are the most pressing issue this year, which is...