Although hiring based on skills is gaining popularity, misconceptions about the effectiveness and merits of this method remain. The challenge is dispelling these myths to make the necessary changes to ensure more fair, long-lasting workforces. The U.S. labor market continues to adjust until 2022. A survey of over 2,300 top executives found that 65% hope to fill new permanent positions during the first quarter this year. A further 33% are trying for vacancies, and there are more than 10.8 million job opportunities throughout America. The U.S. currently. As a company in an echelon of inclusion employment, one thing is evident from our engagements with clients. Traditional hiring methods aren’t an effective way of meeting the demand for workers. Companies need to modernize their hiring practices to remain competitive. This means adopting a skills-based approach to hiring.
The hiring process is based on skills and emphasizes applicants’ technical abilities and essential competencies over years or degrees as the primary determinants of job performance. The process requires hiring teams to identify the essential and preferred skills to fill a job and then objectively assess the skills required to reduce bias during recruitment.
Leading companies are moving towards employing employees with skills. Many of them are associated with OneTen The Business Roundtable’s Multiple Pathways Initiative Markle Foundation’s Rework America Alliance.
However, the movement isn’t free of confusion. Here are some of the biggest misconceptions surrounding using a skills-based model – and the best way to address these to create an improvement in the culture of your organization and beyond.
1. Employers who hire based on skill are unfair to graduates of colleges.
Hiring based on skills isn’t disqualifying college graduates or lowering the threshold to be considered for admission. It’s about articulating what abilities the degree is designed to be a proxy for. So, those who have degrees and those who are skilled by alternative methods can be evaluated for the position. This creates economic opportunities for all and increases the talent pool that companies have access to. Gain access to.
The rise in degree inflation – – the requirement for four-year degree programs in positions that were previously not requiring the same qualifications – has led to an economy of prestige that costs employers. In this model, most jobs that were once highly mobility have become unobtainable to everyone unless they can afford the increasing cost of higher education costs. This has resulted in a disproportionate exclusion of talented from low-income groups, especially those of race. The skills-based approach to hiring provides a practical solution to address this inequality and helps restore the candidacy of the 66 percent of Americans that do not hold bachelor’s degrees. This includes more than 75 percent of Black individuals and over eighty percent of Latinos.
2. The hiring process based on skills can lead to poor hires that hurt businesses.
A skills-based approach could help with more efficient screening and hiring. The hiring process based on candidates’ skills will be 5 times more accurate of a candidate’s future performance than hiring for education and 2.5 times more accurate than hiring for the experience. Additionally, employers have reported that those who do not have degrees are as productive or, in some instances, are more efficient than college graduates.
The additional benefits of employing employees with skills include the reduced time required to hire, higher employee engagement, and lower attrition rates.
3. Hiring based on skills isn’t a viable approach to acquiring talent in our region.
It’s possible that it was not previously. Historically, hiring departments used a hyper-local approach to their recruitment efforts. Due to the increasing use of remote work, employers are able to conduct a wider search for candidates and locate people who match the needs of their marketplace.
In a larger sense, it could mean creating alliances with organizations for workforce development in areas with low resources to create pipelines of diverse and skilled people to fill remote positions. By forming partnerships with these organizations, businesses can drive business results and increase economic equity.
Designing and launching hiring based on skills is a lengthy process that requires continuous education and unlearning. Your organization, as well as your employees and the community, will benefit in the end. By investing in hiring for skills, you will help businesses prepare for the future based on skills work and help create an economy in which everyone American can participate meaningfully in the coming years.
To learn more about the benefits of techniques based on skills and assistance in drafting and implementing your plan, get in touch with Grads of Life.