13 strategies employers can use to shift more to skills-based hiring

For as long as employers have hired people they didn’t know well, those same employers have struggled to predict which applicants were the most likely to be the most productive once on the job. To predict future performance, employers have looked at the past employment and educational experiences of those candidates. But past jobs and education are proxies as employers aren’t hiring applicants to do the work they did in the past, and they’re certain not hiring applicants to attend classes and take tests.

More and more employers now prefer to de-emphasize the use of proxies. So what evidence as they turning to? In many cases, assessments and other tools that allow them to hire candidates based on their skills, which are often called a skills-based hiring strategy. We recently asked 13 industry leaders, including Human Resource Directors and Chief Executive Officers to share their strategies for embracing a skills-based hiring approach.

Promote Lifelong Learning for Success

To switch to skills-based hiring, a business should promote learning and career growth throughout one’s life. It encourages people to learn new things and keep up with changes in their field, which sets up the company for success.

Online workshops, courses, and learning tools made just for the company can help employees advance in their careers. Continuous learning and improvement are necessary to keep pace with the fast-paced business world.

Promoting programs that help employees grow shows that their career development is valued. Employees may receive time off to attend school or obtain a certification, enhancing their skills and career advancement.

Establishing a positive feedback loop involves praising workers who actively improve their skills. Hiring managers may value new skills or certifications, validating the investment in learning and career development.

In performance reviews, discussing skill growth and learning goals brings learning to the forefront. By linking learning outcomes to job promotions, companies emphasize the importance of acquiring new skills.

Encouraging employees to pursue learning helps them excel and should be a priority from the hiring stage. Lifelong learning enables businesses to adapt to changing conditions and attract individuals who are interested in working for them, strengthening the business and its responsiveness to industry changes.

Bobby Lawson, Technology Editor/Publisher, Earth Web

Measure Skills Directly, Not Indirectly

The most important tip for adopting skills-based hiring is to adopt the following mindset: “Never infer, always measure.”

Experience-based hiring takes candidates at their word, pretending that buzzwords on a resume are tantamount to having skills. It also assumes that traditional employment interviews are valid measures of almost any skill, assuming a one-to-one relationship between interview performance and tangible skills.

Consequently, experience-based hiring merely infers skills from flawed, indirect evidence; it never actually measures them. Not only is this particularly ineffective at identifying top talent, but it also tends to exacerbate inequality, as privileged candidates are better able to window-dress their resumes with experiences.

This is where skills-based hiring differs, requiring organizations to directly measure the skills that matter regardless of irrelevant past experience.

Ben Schwencke, Business Psychologist, Test Partnership

Utilize Passive Recruitment for Niche Talent

Passive recruitment is a significant part of this, as it allows for the identification of authority figures within a niche. By observing their past work and contributions within their niche, it’s possible to discern who can “talk the talk.” 

For instance, by examining LinkedIn groups, one can spot rising stars in a certain sector and cultivate relationships with key figures, rather than directly attempting to hire them or inquiring about their job-seeking status.

Tracey Beveridge, HR Director, Personnel Checks

Include Practical Skills Assessments

Incorporating practical skills assessments into the interview process has been highly effective in our approach to skills-based hiring. We ask candidates to undertake tasks that closely mirror real-life job responsibilities. This direct evaluation of their actual skills provides a more accurate assessment than traditional metrics, like educational background or past job titles. 

From experience, this method identifies candidates best suited for the role and fosters a more diverse and competent workforce, enhancing overall team performance and innovation.

Daniel Bunn, Founder and Director, DB IT

Assess Problem-Solving During Interviews

In my experience of recruiting and hiring new employees for my company, and other companies I’ve worked for, I believe that the best tip for employers to shift towards skill-based hiring — rather than hiring based on their school, past job titles, and past experiences—is to have some form of a small test or question for the interviewee based on the job responsibilities. 

This question doesn’t have to be anything crazy complex, but it should be some form of a challenge for the interviewee to figure out the solution or have a reasonable explanation of how the issue or scenario can be resolved. It’s also extremely important to make sure that their answers make sense in relation to the job they’re applying for, and their method of solving the challenge is as practical and reasonable as possible. 

The best answers and methods of solving the problem can be key indicators of how skillful the interviewee is and how they would perform if they are hired and a scenario such as this is brought up to them.

Chris Hunter, Director of Customer Relations, ServiceTitan

Foster Internal Mobility for Skill Growth

Encouraging internal mobility within the organization is a tip I endorse. When employees have the chance to transfer to different roles based on their skills and interests, it fosters a culture of skill-based hiring from within. We continuously monitor and support internal mobility initiatives to ensure they align with our skill-based hiring strategy.

Michael Nemeroff, CEO and Co-Founder, Rush Order Tees

Cultivate Cross-Functional Employee Skills

Encourage a collaborative culture that recognizes cross-functional competence. Encourage staff to broaden their skill sets by working on cross-functional initiatives. This strategy not only broadens individual skill sets but also fosters a comprehensive awareness of the organization’s operations. 

During the hiring process, look for applicants who demonstrate adaptability and a willingness to collaborate across functions. By emphasizing cross-functional collaboration, employers establish a workforce that can easily adapt to changing business needs, making the organization more robust and flexible.

Arman Minas, Director, armstone

Emphasize Essential Skills in Hiring

Look at the role you are hiring for and the essential technical and soft skills required for the candidate to be successful in this role. Also, note skills that are a must for the candidate to have, and what skills you are able to teach them at a later stage. 

You also have to make sure that the candidate is receptive to learning new skills during their tenure. Businesses are constantly undergoing change and require new skills to be taught and included in their teams so that they can function adequately. This is why you need to foster a culture of skills development in your company—learning should constantly take place. In your job ad, you need to use language that is inclusive to the applicants. Communicate the skills you need, and additional skills that would be beneficial for them to be successful in the role. 

In the testing and interview part of the process, make sure that you focus on learning about how their skills are applicable to the job at hand. Past experience is only useful if it applies to the job at hand.

Ben Richardson, Director, Acuity Training

Rethink Job Descriptions for Skills

My first advice to shift to a more skill-based hiring approach is to rethink how you write job descriptions. Instead of listing specific degrees, past job titles, or years of workplace experience in the qualifications, list the core competencies for the role and the extent of the skills you expect candidates to have in each area. It seems like a small shift but it can make a big difference in what kind of applicants you get and the way your team approaches the decision-making process. 

It also requires a change in the mindset of your hiring team toward the roles, because it forces teams to analyze and identify exactly what those core competencies are and why they’re important for success in the role. Ultimately, this can help the team to hire better talent for those positions because they have a deeper understanding of what will define a successful candidate.

Matt Erhard, Managing Partner, Summit Search Group

Expand Recruitment to Diverse Talent Pools

Expanding recruitment channels in collaboration with other talent pools and organizations can assist firms in gaining access to individuals with diverse skill sets. This involves cooperating with vocational training centers, online course providers, and community organizations. People with non-traditional backgrounds and experiences may be a great asset to any company, and these collaborations can help you find them.

Tim Allen, Director, Oberheiden P.C.

Judge Creativity Over Credentials

Brilliant makers exist outside ivory towers, so I implore visionary leaders: judge talent by creativity over credentials! Design bespoke assessments that push applicants to demonstrate the exact abilities most critical for excellence. 

Need ingenious coders? Let them loose on real-world problems, not obscure brainteasers. Seek inventive strategists? Have them analyze your thorniest business knots. Evaluating tangible skills in situ buffers bias, allowing alternate geniuses to transform entire industries without the “right” pedigree. Raw innovation springs eternal from unexpected fonts of talent!

Lou Reverchuk, Co-Founder and CEO, EchoGlobal

Align Hiring with Organizational Strategy

Adopting a multi-dimensional methodology is beneficial. The first step is to align your recruiting process with the organization’s strategy, specifying the skills for each position to ensure a focus on the right skills needed by your business. Updating job descriptions is crucial; remove degree requirements if they are not essential, and instead, emphasize specific skill sets and competencies.

Evaluating current competencies within your organization is important to identify potential gaps that need filling. Thereafter, targeted training or collaborations with academic institutions can be undertaken to close these gaps. Continuous learning and development should be the cornerstone of the rapidly changing job markets of the present day.

Additionally, building a strong employer brand through an effective employee value proposition can showcase company culture and career growth opportunities.

Loretta Kilday, DebtCC Spokesperson, Debt Consolidation Care

Implement Blind Recruitment Practices

Employers can follow blind recruitment practices by removing details about a candidate’s school and job titles during the initial stages. The focus then shifts solely to their skills, creating a more inclusive hiring process. 

Individuals will be assessed on merit rather than their educational or professional background, which helps mitigate biases and encourages a diverse and skilled workforce. It’s also a strategic step to recognize and focus on the talents and capabilities that matter for the job at hand, irrespective of a candidate’s past affiliations or titles.

Perry Zheng, Founder and CEO, Pallas