What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes (2024)

The post-pandemic workforce is transitioning to embrace the ever-changing landscape. With many factors, such as the Great Resignation and inflation, remaining pervasive across industries, there is a rise in quiet quitting, and many employers are redefining their hiring outlook. Today hiring trends are leaning toward integrating a more skills-based approach with more focus on the significance of transferable skills and competencies.

Companies worldwide are pledging to center their operations on diversity, equity, and inclusion. Many are setting new diversity targets and are rushing to hire chief diversity officers to enforce DEI programs. However, despite these efforts, there is a lot of work that needs to be done. A LinkedIn study has highlighted that women account for less than a third of leadership roles in many countries. In Asia, many enterprises are failing to foster an LGBTQ+-friendly environment. Results have also estimated that in Europe, it will take majorly 60 years to bridge the gender gap and implement new measures across multiple dimensions, such as economic opportunity and political empowerment.

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However, employers are exploring new opportunities to establish successful diversity, equity, and inclusion (DEI) initiatives across their workplace to create a culture of belonging. To drive meaningful organizational change, they need to meet the current hiring needs as well as expand their search beyond existing talent pools.

What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes (1)

But what actions should organizations integrate to achieve their DEI goals?

Here, we have created a list of practical tips that will help organizations diversify their workforce and foster an inclusive work culture, along with retaining diverse talent.

Steps to Improve DEI Hiring Strategy within Organization

  1. Undertake Recruitment Drives at Institutions with Experiential Learning

Working closely with colleges and career centers offers a great way to enforce skills-based hiring. With an increasing number of institutions and other higher ed universities adding experiential learning to the curriculum, students can equip themselves with the mandatory skills required. By integrating an experiential learning framework, institutions can prepare their students and connect them to experiences that directly correlate with the work culture they will want to be a part of in the future.

By reducing the focus on educational requirements like major or GPA, employers can pay attention to the candidate’s behaviors and reactions in a more realistic environment. This will help them to work closely with candidates that had experiential learning as part of their curriculum and are better able to work with industry professionals. Employers can start internship programs that will help the candidates develop their talent. This offers a great way for employers to rethink the relationship between course credentials and economic opportunity. It also helps in identifying the underrepresented talent and offers them a higher chance of employment.

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What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes (2)

  1. Integrate Framework to Reduce Biases

Every employer today is on the lookout for the most efficient way to source new talent within the organization. And this is where technology comes into the picture. By facilitating an inclusive recruiting process and automating searches, organizations can achieve potential matches. However, just employing responsible technology alone will not do the job. AI tools are also being integrated to achieve search based on the parameters set in the sourcing strategy. But the system holds the potential to build biases. It is, therefore, important to mention that despite technology acting as a mechanism to expedite the hiring process, it can still be biased.

Therefore, enterprises implementing AI tools should focus on setting inclusive parameters. One way for employers to leverage technology is by evaluating the skills of the applicants based on the same criteria. By incorporating skills assessment tests, employers can determine whether applicants possess the required skills to flourish. Employers can also leverage technology to score these skills assessment tests on set metrics. This will enable them to move ahead with candidates that are evaluated based on assessment test scores instead of other information. Another significant way to utilize technology to reduce biases is to avoid setting up algorithms with a focus on selecting candidates with specific educational requirements.

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  1. Include Inclusive Vocabulary in the Job Listings

If an organizational workplace some do not sound inclusive, the candidate or employees are likely to take a pass. Gender-coded terminologies such as “dominate” or “rock star” might discourage women from applying to the enterprise. Listing too many requirements in the job can also be considered a turnoff for candidates from underrepresented groups. A recent study identified that women apply to 20% fewer jobs than men. And it is often believed that candidates need to meet all the listed job criteria to be hired. Today, many tools are available that are helping the organization craft inclusive job descriptions that can appeal to a wide array of applicants.

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Organizations also need to go the extra mile and signal their inclusive culture in the job descriptions by adding DEI policies in the job postings. This will help the applicant to identify with the organization, compelling them to apply for the deposition if they fit the role.

What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes (4)

  1. Appoint Diverse Interview Panelists

It is important for organizations to make a strong first impression when interviewing candidates from different backgrounds among those conducting interviews. This helps in showing that job seekers are also committed to a culture of diversity and inclusion. However, organizations should also bring multiple perspectives to the hiring process.

For a candidate, it is important to see themselves reflected in the people they’re going to be working for. This helps in instilling a sense of inclusion, diversity, belonging, and volunteerism. It is in the most suitable interest of the organization to have gender-diverse panelists that help reflect the organizational DNA when interviewing candidates.

For organizations to put together a diverse panel, it is better to integrate an honest conversation with the applying candidates about what they are looking to enhance and invite them to be part of the journey. Candidates should be able to identify themselves as members of underrepresented groups when they are having a conversation with the officials in order to learn more about what the organizations and experiences they should look forward to in the company. This will help in providing them with an opportunity to make the right decision.

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Creating an Inclusive Workplace for All

Company leaders need to ensure and be vocal about their support to foster DEI at every step of the organization. When leaders express their support for DEI, it will help in driving the message across organizations that diversity and inclusion are perceived as a serious priority. For instance, the CEO should share insights about organizational DEI frameworks during regular communications with employees and investors or curate DEI programs to foster a sense of belonging across the company.

When it comes to integrating DEI, there is no one-size-fits-all strategy for organizations. Ultimately, the policies that are most suitable for their operations are likely to depend on a variety of factors, such as organizational goals, the regions they operate in, and their budget.

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With the workforce continuing to transition positively into a more inclusive environment, every organization is adapting its sourcing strategies to integrate a skills-based approach. And there is no shortage of talent. On the contrary, there is a shortage of organizations ready to refocus their talent sourcing on transferable skills.

Regardless of the situation, it is vital for businesses to make progress on the DEI front; however, they need to garner support from higher authorities within the organization and set clear objectives to monitor results. DEI will only work for organizations in a continuous process if they facilitate constant attention. Organizations need to acknowledge the need to integrate DEI into their hiring operations. They need to incorporate humility around what will work well and what they still need to learn.

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What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes (2024)

FAQs

What is skills-based Hiring: A Critical Overview to Invest in Diverse Recruitment Processes? ›

Skills-based hiring is a recruitment approach that focuses on the specific skills and competencies required for a particular role, and then assessing and prioritizing candidates on this basis, rather than 'traditional' factors like where someone studied, or previous job titles.

What is the skills-based hiring process? ›

If you're unfamiliar with the philosophy, skills-based hiring is the practice of screening and hiring new employees based on the skills, capabilities, and talent they bring to the table — as opposed to their educational background or degree.

What is the diversity recruitment process? ›

Creating a diversity and inclusion recruitment process means you are establishing a process for your organisation to attract and retain diverse talent. This means you are taking action to create a diverse workforce, which gives you the opportunity to strengthen and progress your organisational culture.

What is the skill based approach in HR? ›

The skill-based approach focuses closely on skills and pays individuals according to the skills they have. Blocks of skills that are needed by the organization, rather than jobs, are the basic units of analysis.

What is a skills-based job description? ›

A skills-based job description focuses on skills rather than responsibilities, and it's a powerful tool that helps identify candidates with the best relevant skills, regardless of degree status or on-paper background.

What are the advantages of skills-based hiring? ›

Skills-based hiring gives companies access to a wider, more diverse talent pool, and saves time and money during the recruitment process. In addition, by assessing a person's skills, rather than their education and experience, a business can attract better quality hires.

What are the 5 stages of the hiring process? ›

By incorporating these five steps into your talent acquisition process, you will find, screen and hire exceptional people in record time.
  • Step 1: Planning and strategy development. A good plan makes for good hires. ...
  • Step 2: Sourcing and recruitment. ...
  • Step 3: Screening. ...
  • Step 4: Interviewing. ...
  • Step 5: Selection and offer.
May 9, 2023

How to create a diverse hiring process? ›

Set your hiring team—and potential candidates—up for success by building anti-bias techniques directly into your hiring processes.
  1. Train your hiring team on unconscious bias. ...
  2. Conduct blind resume reviews. ...
  3. Standardize interview questions. ...
  4. Create work sample assignments.
Apr 24, 2023

Why is diversity important in the hiring process? ›

By ensuring that your team includes staff from various social and cultural backgrounds, you will widen the range of perspectives, knowledge, and approaches from which decisions are made. will appreciate and utilize the skills, backgrounds, perceptions, and knowledge they bring to the table.

What is the goal of diversity recruitment? ›

Diversity recruiting aims to build a team that reflects the diversity of the larger society around you. It goes beyond simply filling roles; it's about creating a workplace where everyone feels welcomed, respected, and empowered to contribute their unique talents.

What is an example of a skill based approach? ›

Examples of skill-based learning include preschool students developing their literacy and verbal abilities, as well as high school students using a disciplined approach to define and enhance their real-world and social skills.

What does it mean to be a skills-based organization? ›

Since the skills-based organization is a relatively new term, there's a lot of uncertainty about what it means. Deloitte defines it as “a new organizational form” that “places skills and human capabilities at the heart of talent strategies, creating a new operating model for work and the workforce.

Why skills-based hiring starts with your job descriptions? ›

Skills-based job descriptions put skills and capabilities front and center and remove unnecessary obstacles that could discourage excellent candidates from applying. Inclusivity is an important aspect, but attracting nontraditional candidates isn't the only perk to skills-based job descriptions.

What is a skill based pay job description? ›

Skill-based pay is a model of compensation in which a person's skills and experience determine their salary. For example, under the skill-based pay model, a team lead with several decades of management experience may earn higher compensation than a less-experienced candidate applying for the same position.

What is a skills-based interview? ›

A skills-based interview is a formal type of job interview where a candidate answers questions designed to assess whether their skill set best matches what an organization needs or desires.

What is a skills based interview? ›

A skills-based interview is a formal type of job interview where a candidate answers questions designed to assess whether their skill set best matches what an organization needs or desires.

What are the 7 stages of hiring? ›

The 7 steps of the recruiting process
  • Planning. During the planning phase, you determine what the company needs are and develop the job description and specification for each open position. ...
  • Strategy development. ...
  • Search. ...
  • Screening. ...
  • Interviews and selection. ...
  • Job offer and onboarding. ...
  • Evaluation of the recruitment process.
Jul 27, 2023

What is the hiring process 7 steps? ›

Listed below is a closer look at each stage of the selection process.
  • Application. The first stage in the talent selection process is the application. ...
  • Initial Screening. ...
  • Interview. ...
  • Pre-Employment Assessments. ...
  • References and Background Check. ...
  • Final Selections. ...
  • Offer and Onboarding.

What are the four steps in the hiring process? ›

The Four Stages of an Effective Hiring Process
  • Step 1: Search and Screening. Harness the power of the Internet to expand your search and simply the screening process. ...
  • Step 2: Interview and Evaluation. Why is a manhole cover round? ...
  • Step 3: Hiring and Onboarding. ...
  • Step 4: Retention and Development.
Dec 22, 2021

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