Skills-Based Hiring: Benefits of This Approach

Many workplaces have taken on modern approaches to talent attraction and hiring, and especially given the rise of technology and devices in many industries, one of the most common such approaches that’s gaining popularity across recent years is the skills-based hiring approach. Skills-based hiring speaks to employers setting specific skill or competency requirements or targets for prospective employees, whether these are specific task-related skills or other “soft” professional skills.

At WTA, Inc., we’re happy to offer a wide range of human resource services, including recruitment and hiring for any of your company’s needs. In this two-part blog series, we’ll begin today by going over the general benefits of skills-based hiring – which will also allow us to dig a bit further into what this practice actually is and how it works. In part two, we’ll go over some best practices if you’ve decided skills-based hiring is the ideal approach for your company. Let’s dive in!

skills-based hiring benefits

Opening Up the Talent Pools

Skills-based hiring is a contrasting approach to one many businesses used for years: Simply hiring from four-year college degree programs rather than looking for people with specified skills. Employers simply assumed that all the relevant materials were being covered in courses, but in reality, some employers weren’t getting the skills they needed. The same goes for job-seekers who may have earned a degree in one field but want to apply their skills in a different way.

Essentially, skills-based hiring opens up the talent pools when it comes to recruitment and hiring – allowing for candidates without formal education or experience to still be considered for positions.

Reducing Unconscious Bias and Increasing Diversity

Another important factor in skills-based hiring is that it helps to reduce unconscious bias in the recruitment process – especially when the vendors or agencies used by an employer are fully vetted. By getting away from traditional approaches, employers can shift their focus from a candidate’s background and more towards their qualification and abilities, creating an environment of more fairness and equity.

In doing so, employers can also create a much more diverse workforce – not only in terms of gender, race, ethnicity or sexual orientation, but also in terms of different skill sets or professional experiences that can bring new perspectives to the team.

Improving Employee Retention

Maybe most importantly, skills-based hiring involves a much greater focus on the fit of a candidate and the job. Finding not only someone who has the needed qualifications, but also someone who fits in with the culture of a company can go a long way in reducing turnover and improving employee retention rates. In turn, this helps build a stronger company overall over time, as employees are more likely to stick around when they feel valued and comfortable in their work environment.

These are just a few benefits that can come with skills-based hiring, and in part two of our series, we’ll look over some best practices and tips for implementing it at your company. Stay tuned! And for more on any of our human resource services, contact WTA, Inc. today. We look forward to hearing from you soon!