How Human Skills Are Reshaping Hiring Priorities

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 efficiencies. This approach opens doors for nontraditional employees and eliminates barriers to entry.

Casey Accounting & Finance Resources can provide you with skilled accounting and finance candidates to help you reach your company goals. Contact us to learn more today.

CSR’s Ripple Effect on Branding and Recruitment

Corporate social responsibility (CSR) has a ripple effect on a company’s branding and recruitment efforts. This management concept describes how an organization contributes to the well-being of communities and society through environmental and social measures.

CSR is a strategic method to enhance employer brand and help attract and retain top talent. Organizations that prioritize CSR stand out from the competition and appeal to new generations of employees. The results include a more attractive business reputation, stronger relationships with stakeholders, and a more sustainable and equitable future.

Why You Shouldn’t Neglect CSR

Core CSR Responsibilities

The three main CSR responsibilities help a company positively impact the environment and society. These responsibilities include:

  1. Adopting ethical business practices to ensure transparency, fairness, and integrity in business operations. Adhering to legal regulations, respecting human rights, and avoiding exploitative or harmful practices.
  2. Actively working toward environmental sustainability. Implementing eco-friendly practices, conserving resources, and minimizing pollution to reduce the company’s ecological footprint. Embracing renewable energy, reducing waste, and supporting conservation efforts.
  3. Engaging in philanthropic activities to give back to the community. Supporting social causes, educational initiatives, healthcare programs, or other projects that benefit society.

Categories of CSR

CSR typically falls into four categories:

  1. Ethical labor practices: Treating employees fairly and ethically.
  2. Environmental efforts: Taking steps to reduce a company’s carbon footprint.
  3. Philanthropy: Donating money, products, or services to nonprofit organizations.
  4. Volunteerism: Employees donate their time to local causes and community events.

Examples of CSR

CSR can take forms such as:

Importance of CSR

Many companies prioritize CSR for different reasons:

  • Improved brand: Many stakeholders look for socially conscious organizations to work for or conduct business with.
  • Stronger employee attraction and retention: Millennials and Gen Z are among the employees who want jobs with companies that emphasize people, planet, and revenue.
  • Investor appeal: Demonstrating a developed CSR program and initiatives helps attract and retain investors.

CSR for Branding and Recruitment

Employer branding is the perception of a company as a place to work. This branding reflects the organization’s culture and employee experience.

Strong employer branding helps differentiate the company from its competitors. Showing why the organization stands out helps recruit and retain qualified candidates. The results include:

  • Higher employee engagement
  • More productivity
  • Increased performance
  • Greater job satisfaction
  • More team cohesion
  • Better collaboration
  • Elevated employee morale
  • Greater innovation
  • Lower recruitment, onboarding, and training costs
  • Stronger bottom line
  • Bigger competitive advantage

Need Help to Recruit and Retain Accounting and Finance Employees?

CSR has a ripple effect on employer branding and employee recruitment and retention. Companies that contribute to the well-being of communities and society through environmental and social measures are more attractive to employees, customers, and other stakeholders than companies that do not engage in these activities. As a result, businesses that prioritize CSR typically have strong employer brands and high employee recruitment and retention rates.

Partner with Casey Accounting and Finance Resources for help with recruiting and retaining accounting and finance employees. Find out more today.