Human skills are revolutionizing hiring priorities, with companies shifting from competency-based to skills-based hiring for better outcomes. This approach enables firms to leverage their workforce and external talent pools more effectively, fostering operational efficiencies and optimizing team performance.
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.
1. Exploring Skills-Based Hiring:
In skills-based hiring, job responsibilities are deconstructed into specific skills and capabilities. HR professionals utilize AI technology to align these skills with appropriate roles, training programs, and growth opportunities. This process enhances external talent pools and augments organizational capacity through strategic recruitment efforts.
2. Contrasting Skills-Based and Competency-Based Hiring:
Traditional competency models rely on outdated skills databases and inefficient systems. This leads companies to make hiring decisions manually based on limited information, often favoring candidate education and work history. Unfortunately, this approach may overlook talented individuals with untapped potential.
In contrast, skills-based hiring, driven by data, creates more opportunities for both individuals and organizations. Candidates with unconventional educational backgrounds, such as technical boot camps or certifications, can thrive. While they might be overlooked in competency-based systems, skills-based hiring assesses their abilities accurately, breaking down barriers for nontraditional employees.
3. Advantages of Adopting a Skills-Based Hiring Approach:
Implementing a skills-based hiring model offers employees tailored career trajectories and insights into necessary skill enhancements for professional development. Additionally, it enables managers to identify skill gaps within their teams, empowering them to decide whether to provide targeted training for upskilling or reskilling existing staff, or to recruit external talent to fill those gaps.
Interested in skills-based hiring? It boosts operational efficiency and inclusivity by leveraging your team’s strengths and external talent while welcoming nontraditional employees. Cornerstone specializes in this approach.