What is Skill-Based Hiring: Everything You Need To Know

HiringHiring & recruiting
Bonica
May 16, 2023
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Employees are essential to any company and business, so employers and hiring managers must hire the best candidates to help their companies to grow and develop.

Employers can use different ways to hire employees to form their teams. One of these very effective methods that many companies used during the pandemic is skill-based hiring.

The skill-based hiring method has come to replace the old and traditional techniques. Rather than relying on old recruiting tools, skill-based hiring is the best option for closing skills gaps, retaining employees, and reducing turnover. 

This recruitment method differs from other traditional methods, allowing employers to hire better people with more skills. 

There are many reasons for these differences, traditional recruiting considers education and degrees as indicators to show that an employee is a suitable option, and the skill-based hiring method is more focused on hiring top-skilled talents.

In this article, we will provide you with all the information you need about skill-based hiring so that you can learn more about this topic. So, let’s dive in!

What Is Skill-Based Hiring?

Skill-based hiring means hiring employees based on people’s skills, talent, and capacity. In this method, employers pay little attention to issues such as educational qualifications, academic records, and educational background and try to pay attention to their strengths, skills, and talents.

This hiring method asks for specific qualifications, such as candidates’ talents. Skill-based hiring goes beyond majors and focuses on candidate skills related to different job positions and what employers seek in individuals. 

Skill-based hiring uses candidates’ soft and hard skills to hire the right individuals rather than rejecting qualified candidates for lacking the appropriate resume. The most straightforward way employers and hiring managers implement skill-based hiring is through job skill assessments.

In other words, skill-based hiring is talent acquisition that recruits based on a candidate’s skills rather than on their educational background or previous roles. It is good to know that this hiring process requires a change in hiring managers’ mindsets because this approach will provide each company and business with great employees that will help the business grow.

Skill-based hiring is significant, and this method helps employers hire capable people for their business and take advantage of the benefits of such a choice.

Recent changes in the workforce and hiring methods have made it difficult for companies and managers to find qualified and talented candidates who meet their requirements. That is where the importance of a skill-based approach becomes bold and helps companies focus on finding and hiring the most skilled talents.

Differences Between Skill-Based Hiring And Other Types

In a typical hiring process, screening tools and tactics look for keywords within applications to see if candidates fit the job position based on their educational degree and background. 

But in the skill-based hiring method, these screening techniques aim to ensure that the candidate is the best for the company based on their skills, talents, and capabilities.

In traditional hiring methods, employers look at an applicant’s resume, educational degree, their computer and decide whether the applicant has the required skills for the job. 

Conversely, recruiters using a skill-based hiring approach often seek candidates’ inner talents and skills. They do not focus on the background or credentials of applicants.

After all, recruiters risk missing out on the right employees when they don’t make hiring decisions based on skills just because candidates need to get the chance to prove themselves.

Moreover, the skill-based approach can be misleading for several different reasons. First, as you know, many candidates exaggerate their experience and educational record; therefore, resumes are only sometimes the best option for choosing and hiring candidates. 

As a result, when employers use the skill-based hiring method, they can pay attention to things outside the resume and hire better people.

Besides, a degree does not necessarily determine whether a candidate can perform well in the needed position, as qualifications may not reflect the candidate’s abilities. 

So, in the old and traditional hiring methods, qualifications significantly impact hiring people. Still, in the skill-based hiring method, degrees are not very important and do not determine the performance of employees.

How To Use Skill-Based In Different Steps Of Hiring

How To use Skill-Based in different hiring steps

So far, we have explained skill-based hiring and its difference from old and traditional hiring methods; in this section, we want to examine how to use this method at each stage of the hiring process.

  • Share Your Job Description

In the first section, you must write an explanation about the job position in question. In this section, your desired candidate’s job descriptions and characteristics should focus on their skills and talents. Try not to write too much about educational qualifications in the description section.

To write the best job description, you can ask your hiring managers to a meeting to discuss critical skills candidates should already have and what they can learn from the job. 

In addition, ensure that there are no unnecessary qualifications that may deter qualified candidates from applying, such as a college degree or required work experience, so you can open an opportunity for everyone that will help you find and hire suitable candidates. 

  • Use As Many Sourcing Channels As Possible

Note that only a small percentage of qualified candidates are hired from job postings and job advertisements. Using various sourcing channels, you can build a more robust and diverse candidate list which helps you to finish the hiring process faster.

Try to expand candidate sourcing channels and search parameters to focus on skills rather than degrees.

Remember that you are hiring candidates based on their skills, so note that people can learn new skills and build expertise in many different ways. For example, you can look for candidates who have attended boot camps or earned skills certifications in other courses. 

Don’t just rely on job ads to hire skilled and talented people. Instead, use any source that helps you find qualified candidates to get the best result.

  • Improve The Candidate Screening Process

It is better to try to have criteria in mind for checking the information of the candidates and their resume; by doing this, you can give each person the same chance to check their information and make sure that you choose the best people according to their skills and only their educational qualifications. 

When you take a few seconds for each resume and check them superficially, you will not be able to choose people based on their skills and talents and only pay attention to university degrees and find a person who graduated from a great university without consideration of whether he has the necessary skills for the job position to the next step.

Also, remember that spaces for explaining skills and talents in resumes are limited, and candidates may need help listing all relevant skills. Therefore, to make the best hiring decision, openly accept applicants who meet most job requirements, especially if they list relevant skills or if the missing skills can be learned on the job. 

  • Use Skill-Based Hiring Assessments

As mentioned before, skill-based hiring tests are practical because they allow you to measure a candidate’s qualifications objectively to assess candidates’ skills in specific fields.

Online skill assessment platforms or in-house developed tools can gauge whether a candidate has the skills needed for a specific job position. 

By observing the things mentioned in this section, you can be sure that you are hiring people you have selected through the skill-based hiring method and that they are candidates with the necessary skills and talent for the business and job position you are looking for.

Advantages Of Skill-Based Hiring

Advantages of Skill-Based Hiring

In this section, we examine the benefits of skill-based hiring to give you a better view of this hiring method.

1- Increase And Expand Your Candidate Pool

Skill-based hiring helps employers identify candidates who may not have a formal education or traditional career path but have the right skills for the desired job position. 

Removing unnecessary job requirements, such as years of experience in a specific role or skills easily learned on the job, dramatically expands the talent pool. 

2- Increase Employees Loyalty 

If you’re considering hiring candidates who will work in your company for a long time, skill-based hiring is the rightest approach to help you meet your needs because people hired through skill-based hiring will likely stay with the company longer. 

As a result, the people you hire based on their skills and only based on their educational qualifications will work with you for more time and will maintain their good performance.

3- Enable You To Hire Among Various Skills

Studies have found that skill-based hiring helps organizations overcome unconscious bias and improve employee diversity in the hiring process. In addition, companies can access a more extensive and diverse talent pool using a skill-based hiring approach rather than education and job titles.

In other words, by using the skill-based hiring method, you can identify the different skills of people in various fields and hire people who can help your business grow with their abilities.

4- Improve The Quality Of The Hiring Process

Studies show that employers who leverage skills to find talent are more likely to hire successfully than employers who don’t rely on skills in the hiring process. 

This means skill-based hiring influences the hiring process’s quality and helps you hire more talented candidates.

Moreover, when an employee’s skills match the job position, the team is more likely to be on the path to success, be more engaged and motivated in the work environment, and will cause hiring the right match for each role. This improves performance, creativity, productivity, and profitability. 

5- Enable Employers To Hire With More Confidence

When employers choose their employees based on their skills, they include better options in their team, ultimately leading to their business’s growth and development.

People who hire their candidates through traditional methods are more likely to choose the wrong person for their company and may regret hiring people through conventional methods.

But companies and employers who hire people through skill-based hiring have better choices and, as a result, choose and hire candidates more confidently.

Conclusion

As mentioned earlier, employees are vital to every company and business, so choosing and hiring people who fit your company’s needs is essential.

In this article, we explained how skill-based hiring, which is a new way to hire people based on their skills, can help you as an employer to hire the best people who have the necessary skills for the positions you want.

We also talked about what makes skill-based hiring different from other recruitment methods, explained the benefits of using this method, and examined how you can use this method in the hiring process to hire the best people.

We hope that this article’s contents will help you hire your employees based on their skills so that they can help your business grow with their excellent performance and talents.