I recently ran a poll on LinkedIn to gauge how important skills-based hiring is in the future of talent acquisition. These were the results:
Although only 130 people voted a large proportion of them were Head of Talent Acquisition making the results feel especially relevant. Having extensively covered skills-based hiring on The Recruiting Future Podcast this year I’m very much in agreement with the 54% here. In fact, I think that skills-based hiring has the potential to be even more disruptive to TA than Generative AI.
One of the recent podcast interviews that has helped shape my thinking was my discussion with Andy Neelsen from SHL. SHL has done an enormous amount of work to establish the link between skills and performance, and their recent research has revealed 12 skills that universally predict success. Here is a summary of the key points from our conversation.
The Growing Importance of Skills in Hiring
- The shift towards skills-based hiring reflects the changing business landscape, with managers increasingly discussing organizational changes in terms of skills. The speed of change means that is now almost impossible for companies to predict the skills they will need in the future. This makes “soft skills” more important than ever.
- Post-COVID labour market disruptions have spurred the need to rethink talent pools, considering the actual skills existing teams possess.
- Skills are emerging as an instrumental factor in DEI initiatives, potentially providing a fairer approach to hiring by focusing beyond academic credentials and experience.
Initial Stages of Skills-Based Adoption
- Though there’s a strong desire to adopt skills-based approaches, many organizations are still grappling with foundational aspects, such as skill definitions and applications in talent strategies.
Skills Taxonomy
- SHL’s taxonomy categorizes skills into perishable (short-lived) and more durable categories. Perishable skills, like the leaves of a tree, are rapidly changing and have a short shelf life. These often include technology or system-specific skills.
- Durable skills form the trunk and roots of the tree, representing long-lasting abilities such as critical thinking, collaboration, adaptability, and communication. These skills offer a stable foundation for talent programs and are increasingly recognized as essential in a broader skills definition.
Uncovering Predictive Skills for Success
- SHL’s extensive and science based research has pinpointed 12 skills that universally predict job success, challenging some traditional assumptions about essential workplace skills.
- The most impactful skills include ‘Takes Action,’ ‘Strives to Achieve,’ and ‘Establishes Credibility,’ which underscore a proactive and achievement-oriented approach.
- Although “Grit” and “Resilience” are often valued by organisation they don’t appear in the top 12 skills. Instead, skills that combined to create a growth mindset such as analyses information, takes responsibility and offers practical solutions were far better predictors of actual job performance.
Addressing Skill Discrepancies
- A notable gap exists between the skills employers seek in job advertisements and those scientifically proven to predict job success, indicating a pressing need for strategic adjustments in talent acquisition.
Promoting Diversity Through Skills-Based Hiring
- The research demonstrates that the identified skills do not disadvantage diverse groups. In fact, they allow different demographic groups, including younger talent pools, women, and ethnic minorities, to excel in specific skill areas.
- Emphasizing skills in the hiring process can enhance DEI efforts, leading to more equitable and inclusive hiring outcomes.
Envisioning the Future of Work
- Successfully implementing a skills-based approach could lead to enhanced mobility within organizations, aligning personal growth with evolving business needs.
- Emphasizing continuous learning and a growth mindset, as highlighted in SHL’s research, can significantly contribute to workforce development and adaptability.
This is really thought provoking stuff and you can check out the full interview here
I’m going to cover skills-based hiring extensively on the podcast in 2024 and would love to get everyone’s thoughts on the current speed of adoption.