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In today's tight labor market, staffing has become extremely competitive as organizations vie for top talent. With competitors looking for the same skill sets as you, the need to stand out becomes apparent. Why is this shift crucial? The consequences of sticking to conventional practices are stark.
Without embracing innovative recruitment strategies, you risk losing out on the best candidates to more forward-thinking competitors. It's time to break free from tradition and adopt a fresh approach to attract and retain employees that can drive your organization forward.
But how exactly can you win over candidates? You need to think outside of the box—transition from traditional practices to new recruitment strategies.
Historically, organizations have taken a formulaic approach to staffing. They base their hiring decisions almost entirely on qualifications and educational credentials. Job descriptions have focused heavily on years of experience, academic degrees, and specific skill sets. This tradition has valued certain concrete measures of a candidate's background over more intangible factors.
Regardless of how prevalent this strategy is, strict educational and experience requirements
introduced several problems to the working world.
As the labor market grows more competitive, these traditional notions of talent and merit have proven too limited.
Rather than sticking to outdated traditions, hiring managers are trying to expand the definitions of qualified applicants while upholding standards of excellence. This is where the idea of skills over diplomas when hiring comes into the picture.
Read More: 8 Effective Strategies for Hiring Top Talent and Finding the Perfect Fit
Due to the old recruitment strategies, the job market faces degree inflation. This phenomenon is where employers look for certain degrees even though the role might not need them.
For example, a company looking for a data center technician might aim for a professional with a relevant master's degree. Instead of focusing on their clients' technical expertise, they shift their attention to unnecessary levels of educational attainment.
In a notable 2017 study, the disconnect was stark - 67 percent of production supervisor job postings mandated a bachelor's degree, yet only 16 percent of existing supervisors held one.
This inconsistency in hiring practices poses a risk to a company's employer brand, limiting opportunities for qualified candidates and contributing to hiring challenges amid labor shortages. Moreover, strict degree requirements often fail to predict on-the-job success, as the skills acquired in higher education might not align with the practical demands of the role.
Encouragingly, a 2022 study revealed a shift in employer attitudes, with 1.4 million more middle-skill jobs becoming accessible to non-degree candidates.¹
Luckily, many companies have moved away from this traditional practice. After analyzing 51 million job openings between 2017 and 2020, researchers found a 46 percent reduction in the college degree requirements for middle-skill positions. Meanwhile, 31 percent of companies adopted skills-based hiring for their high-skill positions.²
LinkedIn also found that 45 percent of recruiters on their site focused on finding candidates based on specific skills rather than their college degrees.³ So even if a professional is self-taught or only holds certifications, they can still potentially land the jobs they want.
Read More: Skills-Based Hiring in 2024 - What Employers Need to Know About the Changing Landscape of Skills
In tandem with prioritizing skills, objective skills assessments have provided recruiters with a practical measure of candidates’ capabilities.
Rather than over-relying on resume screening, more tech companies now incorporate tests like coding challenges, simulation exams, and technical interviews. These evaluations allow hiring managers to gauge hands-on proficiency in debugging, design thinking, and data analysis.
Skills-based assessments offer clearer insight into on-the-job excellence when calibrated to real-world demands. For tech recruiters, key indicators of a qualified individual are as follows:
In a skills assessment for a tech position, technical aptitudes are a primary basis because they directly determine an individual's ability to perform specific tasks and contribute to technical projects.
Tech roles often demand specialized skills such as coding, programming languages, system architecture, and problem-solving. Assessing technical aptitudes ensures that candidates possess the hands-on expertise required to meet the job demands.
Given the rapid evolution of technology, the emphasis on technical aptitudes allows employers to gauge an individual's adaptability and readiness to embrace emerging trends. This makes it a key indicator of their potential for success in a tech position.
Aside from a professional's technical capabilities, soft skills are equally critical in a skills assessment for a tech position. This is because they contribute to creating a collaborative and effective work environment.
Some useful soft skills that employers aim to observe are:
Assessing soft skills helps identify candidates who not only excel in technical tasks but can also contribute positively to team dynamics, project management, and the organization's overall success.
Read More: Here's Why Soft Skills Matter More in a Digital World
When filling tech positions, combining technical aptitudes and soft skills is key for well-rounded and successful professionals. More than finding the right people, this modernized approach brings many benefits to the table.
Emphasizing skills casts a wider net to capture capable candidates from all backgrounds. This increases applicant volume and diversity, allowing businesses to discover motivated talent they might have overlooked.
Since there are more candidates to choose from, it also takes less time for recruiters to fill open positions within the company.
Connected to the first benefit, prioritizing skills over degree requirements encourages more equitable and bias-free hiring. By focusing only on their capabilities as a potential employee, companies can hire people with skills aligned with real job needs.
Organizations that hire for skills gain diversity and access to motivated talent across gender, racial, socioeconomic, and educational backgrounds.
Read More: Ethical Considerations in Staffing - Promoting Fairness and Equal Opportunities
Through skills-based hiring strategies, employers are more likely to find candidates who can prove their competencies through tests and assessments.
Thanks to their skills and abilities, these professionals are more likely to be higher performers than those hired based solely on credentials. As your focus stays on core proficiencies, your company is closer to success.
With skills-based hiring, candidates already possess the baseline abilities to excel in their roles. This can easily translate to faster productivity and better overall performance.
For example, a candidate with a prestigious computer science degree but little software developmental experience will pale compared to a candidate with extensive knowledge and experience handling programming languages. Embracing skills over credentials allows you to secure capable professionals and pave the way for a workforce that excels based on merit rather than formal qualifications.
Based on the principles of traditional hiring practices, a professional who earned his master's degree a decade ago is a better candidate than a fresh graduate. The truth is, this isn't always the case.
A skills-centric hiring strategy allows your company to reach professionals who are immersed in your field of expertise. It ensures that your employees bring up-to-date skills and knowledge relevant to industry trends. This knowledge infusion helps organizations stay competitive and agile in rapidly evolving industries.
Employees hired for their skills are often more adaptable to changes in job responsibilities or industry dynamics. Since they are selected for their skills rather than specific educational backgrounds, they can translate their skills to finish tasks given to them.
Their pre-existing expertise ensures a seamless transition to whatever responsibility is given to them. Coupled with your efforts of fostering a culture of agility and adaptability within your organization, you can ensure a workforce ready to navigate evolving challenges and swiftly embrace new opportunities.
This enhances individual and team performance and contributes to your business's overall resilience and competitiveness.
When employees' skills are aligned with the needs of the job, employees are more likely to feel satisfied and motivated to do their work.
Based on studies, organizations with high retention rates cited job satisfaction as one of the main reasons why their people stay. Every task they finish becomes a source of accomplishment while seamlessly integrating their skills into daily responsibilities fosters a sense of professional fulfillment.
In today's dynamic landscape, where the emphasis on skills is growing, finding the best candidates has become crucial. With a legacy dating back to 1898, Allied OneSource is your experienced partner in connecting employers with outstanding professionals.
As you navigate the shift towards skills-based hiring, let us be your strategic staffing ally. Contact us today to begin a conversation and discover how we can elevate your workforce.
References
1 Cooper, Preston. "How Unnecessary College Degree Requirements Hurt The Working Class." FREOPP.org, 14 June 2023, https://freopp.org/how-unnecessary-college-degree-requirements-hurt-the-working-class-e1812b42a2f.
2 Fuller, Joseph, et al. "Skills-Based Hiring Is on the Rise." Harvard Business Review, 11 Feb. 2022, hbr.org/2022/02/skills-based-hiring-is-on-the-rise.
3 LinkedIn Economic Graph. "Skills-First: Reimagining the Labor Market and Breaking Down Barriers." LinkedIn, 2023, economicgraph.linkedin.com/content/dam/me/economicgraph/en-us/PDF/skills-first-report-2023.pdf.
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