With ongoing skills shortages impacting most businesses, it’s never been more important for organisations to think strategically about recruitment. And it’s clear that the majority are adapting their approach; in a survey we held with our talent networks, 81% of employers said they were prioritising skills-based hiring in their people strategies this year. However, it’s one thing saying you are going to recruit on a skills-first basis, and another to implement this effectively. But why is adopting this approach so important, and how can businesses make it work?
Not only are talent droughts worsening, but skills demands are shifting rapidly with the advancements of new technology and the evolving world of work. The rise of generative AI will only drive further change. Equally, it’s clear to many employers that younger generations are not emerging from formal education with the knowledge that they need to have an immediate impact in the corporate world. These factors mean that more businesses are seeking to employ talent on a skills-first basis, focusing on hiring those who have the core attributes to develop and adapt to future requirements.
Working in this way doesn’t just lead to a more rounded, futureproof and resilient workforce, it also benefits adopting organisations in various other ways. By showing that they are focused on employee development, businesses can add further value to their employer brands and benefit from improved recruitment and retention accordingly. Internally, offering employees the chance to boost their skills creates the same positive effect, and can increase loyalty and morale.
There are clear benefits to becoming a skills-first organisation but changing approaches to hiring isn’t always easy. Here are some top tips that will help businesses implement an effective skills-first hiring programme.
Develop a culture of upskilling and reskilling
Modern-day skills requirements are rapidly changing and, one way or another, organisations will need to keep up with this transformation. This means that building a culture where upskilling (and reskilling) is constantly on the agenda is key. Trying to retain outdated hiring models will only create stagnant workforces and businesses that are struggling to keep up with the pace of change. It can also lead to recruiting on a more ad-hoc and less strategic basis, which is costly and ineffective.
Drop educational requirements
By dropping unnecessary criteria from job descriptions, businesses can open themselves to a much wider and diverse pool of talent than in the past. Not everyone has the same opportunities in life, and many people are late developers who may not have had the chance to secure university degrees, for example. Reducing educational requirements means organisations can widen talent pipelines and identify those who haven’t followed traditional paths into employment, which further helps to boost diversity, equity, inclusion and belonging (DEIB) in the workplace.
Recruit on a more diverse basis
While most employers are now thinking in a much more diverse way than they have historically, more can still be done to boost DEIB. There has also been a worrying trend of organisations adopting less diverse practices as the market has become tighter, which will only harm workforce development. Broadening your search to more diverse areas of the labour market, and engaging people from under-represented groups — such as neurodivergent professionals and former military personnel, for example — will benefit you as an employer and help you find the flexible skills you need.
Use data and technology effectively
All businesses have access to valuable data and insights that they generally do not exploit to full effect. Implementing a successful skills-first approach to hiring requires the use of the right technology. The key to this is mapping out a total talent model, supported by workforce data, which outlines a long-term strategy for up- and reskilling and drives decision-making across all areas of the business. For example, the right technology makes it much easier to produce skills ontologies and keep track of the skills your employees will gain in the future.
Get leadership buy-in and adopt change management
Any organisation that attempts to develop a skills-first approach without first securing leadership buy-in is destined to fail. These strategies can require significant change management and internal transformation. Consequently, they need to be led from the top. Employers must also get their existing employees to think in the same way and ensure they are on board with this new approach, particularly in more traditional firms where legacy recruitment strategies are deeply embedded.
As the talent market becomes more challenging for employers to navigate, organisations must look to recruit with a skills-first approach and build workforces capable of adapting to significant change. It won’t be easy, but the long-term benefits are clear to see.
By Janine Chidlow, Managing Director of global talent solutions leader WilsonHCG
