Hiring is about finding the right person for the job. While skills have always been important, skills-based hiring is emerging as a method to discover high-quality talent that meets the practical needs of a role. By shifting the focus from background to capability, this approach can reduce biases and identify candidates who are a great fit. However, it requires a change in mindset, processes, and technology.
What is Skills-Based Hiring?
Skills-based hiring evaluates a candidate’s abilities in relation to the specific needs of a role, prioritising these over traditional criteria such as education and years of experience. This includes both technical (hard) skills and interpersonal (soft) skills.
Certain industries already use skills-based methods. For example, orchestras hold blind auditions to remove bias, ensuring the best musicians are selected. Chefs often undertake practical trials, and professional roles increasingly include take-home assessments. However, even in these cases, candidates are often initially screened using traditional methods, like resumés that highlight qualifications and work experience.
Evolving the Skills Discussion
The concept of assessing skills isn’t new. Decades ago, terms like knowledge, skills, and attributes (KSAs) or competencies were used, but today it is more common to refer simply to “skills.” One expert explains that skills represent a person’s ability to perform tasks and responsibilities effectively.
For example, hiring managers should not just look for someone with a “project manager” title but someone who can perform the specific tasks required for the role, such as managing budgets, timelines, or systems. Similarly, someone without the official title but with proven capabilities in those areas may also be an excellent fit.
Skills can be thought of as a form of currency. Some skills have clear, established values, while others may be newer and harder to quantify. Advances in technology, including AI and Human Capital Management (HCM) platforms, are helping organisations map and manage skills effectively. These tools can create unified skills frameworks, enabling structured and even automated hiring processes that focus on what candidates can do.
A New Lens for Hiring
While skills-based hiring isn’t new, it has become more critical as candidate pools shrink. One talent acquisition professional notes that skill shortages in certain industries have forced organisations to rethink their approach.
“Roles remain unfilled because the talent pool isn’t large enough. Skills-based hiring helps broaden the candidate pool by focusing on what candidates can learn and achieve rather than just where they’ve worked or studied,” they explain.
Organisations adopting this approach often see benefits like reduced turnover, higher productivity, and increased diversity. Traditional hiring methods can be too rigid, focusing on years of experience or specific employers, which may exclude highly capable candidates. By recognising transferable skills and providing training, organisations can address skill gaps while creating a supportive environment for employee growth.
However, it’s important to recognise the limitations of skills-based hiring. Some roles require specific certifications or qualifications due to industry or regulatory standards. Understanding these boundaries ensures the approach remains effective and compliant.
Getting Started with Skills-Based Hiring
Transitioning to skills-based hiring doesn’t require a complete overhaul. Here are some practical steps to begin:
1. Skills Mapping: Identify the core, strategic, and essential skills needed for your organisation. Define what’s critical for success and create a concise list.
2. Start Small: Begin with one role or department and test the approach. Learn from the process and refine it over time.
3. Simplify the Process: Avoid overcomplicating your skills framework. Focus on the most important capabilities to prevent confusion for both candidates and hiring teams.
4. Leverage Existing Programs: Many organisations already use skills-focused approaches in internships, apprenticeships, or graduate programs. Build on these successes to expand the practice to other areas.
5. Incorporate Technology: Use tools and platforms to identify, map, and manage skills efficiently. This can streamline hiring processes and improve outcomes.
Final Thoughts
Skills-based hiring is a valuable approach that prioritises what truly matters: a candidate’s ability to do the job. By shifting focus from traditional criteria to skills, organisations can unlock new talent pools, address skill shortages, and create a more dynamic and inclusive workforce. Starting small and iterating allows organisations to explore this approach effectively, ensuring it meets their unique needs while preparing them for the future of work.
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Talent Acquisition