What employers need to do to switch to a more skills-based hiring approach

It is one thing to convince someone that their approach needs to be improved. It is another thing for that person to really internalize that and decide to take action. It is yet another thing for that person to move from deciding to take action to actually taking that action. And it is another thing yet for that action to have the desired consequences.

We can talk all we want about the benefits to employers of moving from a largely subjective hiring approach that emphasizes the schools, majors, and past jobs of candidates to the more objective, scientifically-validated approach of skills-based hiring. We will certainly help to convince some employers, but convincing them to move to a more skills-based hiring approach is quite different from them being able to do so. For them to make that move, they’re going to need to know specifically what they need to change and, later, they’ll need to make those changes.

For now, let’s focus just on what needs to change. Later, the employers who want a more skills-based hiring approach will need to make those changes for we can’t make the changes for them. We’ve gathered insights from Executive Recruiters and Managing Directors to address the hurdles the employers might encounter, from industry-specific degree requirements to overcoming managerial resistance to change. Here are the eight critical issues they’ve identified that companies need to navigate when moving away from traditional hiring metrics.

Embracing Adaptability and Newer Tools

I’m a 25-year veteran recruiter in the advertising/marketing niche. Before shifting my career to headhunting, I spent over a decade in Client Services in this same industry. Admittedly, my view is skewed toward my specific experience—other disciplines may be slanted 180 degrees differently. 

Like many industries, the advertising/marketing world has been rigid in requiring a degree to enter the field. However, what may be unique to advertising/marketing is that the specificity of the field in which the degree is obtained is moot. 

Case in point, to this day, I recall the best strategic mind I ever had the privilege of working with was a gentleman with a degree in music therapy, of all things. Over the years, I have worked for, with, and recruited executives with a wide array of degrees, from economics to journalism to history to marketing. 

As the shift to skills-based hiring takes a stronger hold, I’m encouraging candidates to embrace all the tools introduced in recent years—from UX to AI and many others. Those who are more adaptable will be more accepted and rewarded. 

Some say technology will someday put us humans out of a job. I vehemently disagree. I don’t think we will ever be replaced, but I’m willing to wager we need to embrace all the offerings, or we will certainly be left behind.

Jamie McCann, Executive Recruiter, 3 AM Marketing Services

Developing Skills Evaluation Processes

To initiate hiring through a skills-based approach, it is necessary to create a hiring process that allows for the best skills evaluation. Usually, polishing this process takes a lot of time and undergoes iterations. First, it’s necessary to find people who will create tasks that will be given to candidates during interviews. 

These individuals must be professionals in their respective fields and possess a nuanced understanding of how to evaluate skills across different proficiency levels. You can’t give the same tasks to a marketing manager and a developer. And you can’t give the same tasks to a junior developer and a senior one. 

Once these tasks are created, the hiring panel should approve them, which is not as easy as it sounds because someone could have comments and push for alterations. After implementing this process, adjustments are likely to continue, given that real-world applications might unveil elements that prove unnecessary, too easy, or too hard. 

The evolution of this process will never stop as the world moves forward and changes in technology demand continual adaptation.

Daria Erina, Managing Director, Linked Helper

Overcoming Bias Against Nontraditional Backgrounds

In my current role as a hiring manager, the shift from a traditional focus on education and work history to a skills-centric approach poses a challenge, primarily linked to potential bias against candidates lacking conventional academic or professional backgrounds. 

This transition necessitates a continuous reassessment of ingrained perceptions about qualifications, with the risk of overlooking highly skilled individuals who have taken unconventional routes to expertise.

By exclusively valuing degrees and job titles, our team faces the potential of missing out on candidates boasting diverse skill sets and valuable hands-on experience. To navigate this shift successfully, we proactively redefine our criteria, giving prominence to specific skills vital for each role and implementing unbiased assessments. 

This ongoing transition demands a cultural change within our organization, fostering a more inclusive and forward-thinking hiring approach that prioritizes talent and capabilities over traditional credentials, ultimately widening our pool of qualified candidates.

Mark Fong, General Manager and CEO, hexagon LED lights

Standardizing Skills Assessment Procedures

Lack of standardization and transparency in evaluating applicants’ skills can pose a significant hurdle in a skills-based hiring approach. Unlike educational qualifications or work history, skills are not easily quantifiable and can vary widely in proficiency levels. This lack of standardization makes it challenging to compare candidates objectively. 

Without a transparent and structured evaluation procedure, it can lead to biases and inconsistencies in the hiring process. Therefore, employers venturing into skills-based hiring must establish clear guidelines for skills assessment and maintain transparency throughout the process to ensure fair and objective hiring decisions. 

This shift also requires employers to invest in appropriate tools and training to evaluate candidates’ skills accurately. With proper resources and expertise, it can be easier to effectively determine an applicant’s skill set, leading to potential mismatches between the job requirements and the candidate’s actual abilities.

Eric Eng, Founder and CEO, Private College Admissions Consultant, AdmissionSight

Managing Increased Applicant Volume

Shifting to a skill-based hiring approach from a traditional one can be overwhelming for an employer. Foremost, the skills they require can have a wide range of scope. These skills can cover job aspirants from numerous fields. 

Because of this, there can be a tremendous number of candidates applying for the job. Sorting qualified candidates from the vast pool of job aspirants won’t be seamless. Employers will have to expand their hiring team or take the help of agencies to make the process faster and more efficient. 

Additionally, they may have to use AI tools. All these factors will incur extra expenses for the employer, which can result in temporary budget constraints.

Adrian Hall, Business Development Manager, Pharmacist Schools

Identifying Challenges in Perspective Shift

Employers may face some difficulties when they switch from traditional hiring practices to a skills-based strategy. One significant problem is the need to change one’s perspective from evaluating applicants solely based on their job experience and education to instead concentrating on their skills and abilities. 

Hiring managers who are accustomed to the previous strategy might resist this shift. Furthermore, there may be initial challenges in implementing a new evaluation procedure and accurately identifying relevant skills. However, employers can overcome these obstacles and realize the full potential of skills-based hiring with the right training, an open mind, and effective communication.

Janice Hawkins, Group Sales and Marketing Manager, Future Care Group

Creating Fair Skills Assessment Systems

Shifting from a traditional hiring approach focused on education and work history to a skills-based approach can present several challenges. One key issue is the potential difficulty in objectively assessing and measuring skills.

In a conventional hiring process, credentials and work history offer clear, easily verifiable benchmarks for evaluating candidates. Degrees, certifications, and past job roles provide a standardized way to screen applicants. However, when the focus shifts to skills, the evaluation becomes more nuanced and subjective.

Developing a reliable and fair system to assess a wide range of skills can be challenging. Skills can vary greatly in nature and complexity, and determining the right way to test or measure these skills requires careful consideration. For example, evaluating technical skills might involve practical tests or assignments, but assessing soft skills like communication or teamwork can be less straightforward.

This shift might require the employer to invest in new tools or training for the hiring team to evaluate skills effectively. They may need to design new assessment methods, such as work simulations, skill-based tests, or competency-based interviews, which can be time-consuming and require expertise to develop.

Overall, while a skills-based approach can lead to more effective hiring, the challenge lies in creating a robust system to evaluate a diverse set of skills fairly and accurately.

Bhavik Sarkhedi, Growth Head and CMO, Content Whale

Overcoming Managerial Resistance to Change

One issue an employer may face when shifting to a skills-based hiring approach, with a focus on education and work history, is the potential resistance from hiring managers. Hiring managers and teams accustomed to traditional methods may resist the shift, as they might be more familiar with evaluating candidates based on degrees and job titles rather than specific skills.

They may need training to effectively assess and interpret skills during the hiring process. This includes understanding how to evaluate practical exercises or hands-on assessments rather than relying solely on resumes.

Also, hiring managers may be influenced by unconscious biases related to educational backgrounds or work history. Transitioning to a skills-based approach will require a conscious effort to overcome such biases and focus on objective evaluations of candidates’ abilities.

Aqsa Tabassam, Business Development Manager, Walk In Tub