Skill-based hiring involves selecting the person who is best suited to the tasks associated with a position based on their skills and competencies. Companies that recruit new employees based on skills have moved away from the traditional idea that applicants have to look good "on paper" to be effective in their job. These companies are therefore more open to finding, hiring and retaining the most suitable talent.
Competency-based recruiting has several benefits. Not only does it help you find the best person for the job, but it can also make the hiring process much more efficient. Below we describe 5 benefits of a skills-focused recruiting process.
Often, on paper, it looks as if a candidate could be a perfect fit for the position. In such cases, this is an assumption based on proven qualifications and professional experience. However, this information provides only a very limited insight into a person's actual skills and potential. With the competency-based approach, however, it is much easier to see which applicants already have which skills and which need to be developed. By looking for skills rather than qualifications, companies can make informed decisions about who is the best fit for the team.
Traditional recruitment practices discriminate against people with marginalized identities. Skill-based recruiting also considers candidates who may not be able to demonstrate certain qualifications, diplomas or professional experience in their application documents, but who could still be a great asset to the company. Reliable information about soft skills can hardly be found in application documents. However, they will become all the more apparent in the way new employees approach certain tasks.
With competency-based recruiting, companies look much more closely at the actions of individual employees than they do at guessing how a person works based solely on their educational qualifications, work experience or personality traits. Companies may find that those who have the least on paper have the best problem-solving skills in real-life situations. When new employees fit really well into a team, you can significantly reduce the amount of time lost due to misunderstandings. This strengthens cohesion and contributes to a positive company culture. Finally, research shows that good relationships in the workplace have a significantly positive impact on group performance.
When companies have a position to fill, they often choose the person who has more experience than others. In a traditional recruitment process, candidates with the most experience are hired. With the competency-based approach, companies also consider less experienced people who align with the company's values. By focusing on a person's soft skills and their development rather than just looking at the sum of their experience, companies can create a competency-based organization that functions more harmoniously. Companies save a lot of valuable time and energy that they would otherwise have to invest in dealing with unexpected challenges or developing innovative approaches.
Employees in a competency-based company are more likely to rate their everyday working life more positively. Skill-based hiring, along with other strategies to increase employee retention, helps the individual areas of a company to mesh better and work more effectively. These factors ensure stronger relationships within teams. In addition, employees feel more of a sense of belonging in the company. The work is more meaningful because they can "make a difference" and feel more valued. Employer branding also benefits from this. Ultimately, competency-based recruiting saves companies time and money. Less time spent on recruiting means more time to support existing specialists who stay long-term because their company means something to them.
So, how exactly can skill-based hiring be implemented? Here are our tips for modernizing recruitment processes:
360-Talents is a full-service recruiting platform and enables skill-based hiring. Interested? Register or contact us.
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