Human skills are reshaping hiring priorities. Many companies are transitioning from competency-based hiring to skills-based hiring for more effective results.

Adopting a skills-based approach to hiring lets companies capitalize on the potential of their workforce and external candidate pools for greater operational efficiencies. This approach provides opportunities for nontraditional employees to work for the organizations and helps optimize team and organizational performance.

Adopting a Skills-Based Approach to Hiring

Most CEOs say there is a global skills shortage but not a people shortage. As a result, many companies are switching from a competency-based model to a skills-based approach to hiring.

Implementing a skills-based approach to hiring lets an organization capitalize on the potential of its workforce and external candidate pools to support operational efficiencies. This approach is significantly more effective than a competency-based hiring model.

Breaking Down Skills-Based Hiring

Skills-based hiring breaks down job duties, responsibilities, and tasks into a set of skills and capabilities. Then, HR professionals use AI-based technology to match skills to roles, training sessions, and opportunities. These activities expand external talent pools and increase organizational capacity through hiring.

Differences Between Skills-Based Hiring and Competency-Based Hiring

Traditional competency models rely on static skills databases, disconnected systems, and inefficient interfaces. Therefore, companies manually make hiring decisions based on anecdotes and assumptions. As a result, leaders typically focus on candidate education and work experience to make hiring decisions. These factors leave out current and potential employees with untapped potential.

In contrast, a skills-based model relies on data and insights to make hiring decisions. As a result, current and potential employees increase their career opportunities, and companies elevate their operational capacity.

For instance, candidates without access to colleges and universities might complete technical boot camps or certification programs. If these candidates apply to companies with a competency-based hiring model, they likely will be removed from the application process because they do not have college degrees. Conversely, if these candidates apply to companies with a skills-based hiring model, they can be accurately and equitably matched to roles based on their capabilities. Therefore, hiring based on skills opens doors for nontraditional employees and eliminates barriers to entry.

Business Case for a Skills-Based Approach to Hiring

Using a skills-based hiring model provides employees with personalized career plans and information about required skill development for learning and growth. This model also shows managers which skills their teams lack. Then, managers can determine whether to provide relevant training to upskill or reskill their employees or to hire external talent.

Would You Like Help with Skills-Based Hiring?

Adopting a skills-based approach to hiring lets you capitalize on the potential of your workforce and external candidate pools to support operational efficiency. This approach opens doors for nontraditional employees and eliminates barriers to entry into your company.

Arlington Resources can provide support in implementing a skills-based hiring model. Contact us to learn more today.