Aug 1, 2024
Companies are increasingly adopting skills-based hiring, but implementation challenges remain. Here's how to make these practices successful.
Despite the increasing adoption of skills-based hiring, a report by Burning Glass Institute found that out of 77 million new hires last year, less than 100,000 were workers without a degree - a net change of just 0.14 percentage points. This article explores strategies to help skills-based practices stick within American businesses.
Companies should start implementing skills-based practices in departments with pressing talent needs. This approach creates champions for the method and builds proof points over time, driving organization-wide change.
While many HR tech platforms weren't built with skills-based practices in mind, new technologies are emerging. Platforms like AdeptID and Workday use machine learning to help companies find hidden talent and match employees to jobs based on skills and goals.
Companies need to offer new approaches to support recruitment and promotion when moving away from degree-based hiring. Clear communication about the benefits of skills-based practices is crucial. For example, a midsize manufacturer in New Hampshire invested in skills-based career pathways, enabling employees to advance from the manufacturing floor to the IT department.
Thirty companies are piloting skills-based approaches as part of a collaboration between the Society for Human Resource Management (SHRM) and Jobs for the Future (JFF). These pilots are uncovering valuable insights and promising practices for implementing skills-based hiring.
The growing focus on skills-based hiring practices has the potential to create numerous opportunities for millions of job seekers. Despite implementation challenges, companies are learning how to effectively apply these methods, paving the way for a more inclusive and equitable talent economy. As businesses commit to skills-based hiring, they're proving that investments in expanding talent pools can yield significant benefits.