What is Skills-Based Hiring and Why Is It So Important?

Traditionally, hiring for an open position entails a careful review of candidates’ experience and education. Skills-based hiring, on the other hand, takes a closer look at the specific skills that each applicant brings to the table, particularly the ones that would help them succeed in your company. It decreases time to hire while increasing the overall fit of candidates with your company. This shift in evaluation also helps candidates find the best jobs for their particular talents and interests.

While this was an aspiration for many HR departments and businesses for years, skills-based hiring is now more of a reality, thanks to reduced costs and increased opportunities due to the latest technology.

Here are 3 tips to successfully bring skills-based hiring to bear on your job openings:

  1. Identify the work that needs to be done and the specific skills required to do it. First, you need to understand the specifics of projects, goals and deliverables for any job opening. What skills will best suit this position? The ability to code under pressure? Strong public speaking skills? Be very specific. Then, revise job descriptions to match. You can use a skills database that will match jobs with skills to make this process easier.

  2. Train your team to hire for skills. This will likely be a shift for your HR team and your company’s recruiters so they will need to be retrained on new technology and parameters as well as the overall culture change you are expecting. Getting internal buy-in is sometimes the most challenging part of the process, but showing how effective this type of hiring is will definitely help your case.

  3. Track your efforts and progress. This change in hiring will not likely happen overnight and it is important to track metrics such as quality of each hire, the time to fill each open position and overall candidate performance. The data you capture will help you fine-tune your skills-based hiring program and make updates as necessary.

As you implement and review your skills-based hiring practices, you will likely need to make updates in things such as job descriptions or interview practices along the way—that is completely normal. Skills-based hiring can look a little different for each business and each industry.

As jobs change and new positions and skills are created, skills-based hiring can help your company stay at the forefront of successful hiring and employee and business growth.