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Digital Learning

What is Skills-Based Hiring?

Skills-based hiring is changing the way companies employ staff. With the skills gap an ever-present issue for organisations, it's important to prioritise the right skills at recruitment stage.

A skills-based approach can be taken across the employee lifecycle, including hiring and career development.

In this guide we will be looking at how it can positively impact hiring when carried out in the right way, as well as providing some examples of skills based hiring.

8 minutes

Written by Claire Thomas, Content Operations Manager, Access Learning.

In this article we will explore the following areas:

What is the definition of skills-based hiring?
Why should you consider skills-based hiring practices?
What is the process for skills-based hiring?
Three examples of skills-based hiring
Setting your organisation up for success with skills based hiring practices
Using Access Learning to get top talent through the door

What is the definition of skills-based hiring?

Skills-based hiring is a method of recruiting which matches skillset to job roles instead of solely focusing on factors like education or experience in a previous role. This means that recruiters screen for specific competencies that are needed to succeed within the job role.

An example of skills-based hiring would be a company recruiting for the role of customer service representative. Instead of focusing on a candidate's previous experience in customer service, they would instead focus on their competencies around communication and assess their problem-solving abilities.

Why should you consider skills-based hiring practices?

Organisations are taking on this approach for a multitude of reasons, including:

Setting up a workforce for future success and helping to close the skills gap
Keeping top talent motivated and satisfied through clear career paths
Creating a flexible and adaptable team.

By using skills-based hiring when recruiting, you can showcase to potential employees that you are a forward-thinking organisation who values their potential and is committed to their growth. This demonstrates a culture of innovation and adaptability, attracting top talent who are eager to learn and make a difference.

What is the process for skills-based hiring?

Now we have covered what skills-based hiring is and why it can benefit your organisation, let’s explore some key steps involved to successfully implement it into your organisation’s recruiting practices.

1. Review your current hiring process

The first step is to review your current hiring processes to identify whether you are assessing skills. Ask yourself:

Are we looking at skills when getting talent through the door, or are we relying on qualifications?
What criteria do we use to evaluate whether a candidate is the right fit for the role – such as educational credentials?
Do we need to change our methods to include skills-based hiring?
By carefully examining how you currently recruit candidates, you can find out where a skills-based approach could be undertaken or to replace or use alongside your current methods.

2. Take a collaborative approach

To make long-term changes to your hiring practice and for the best results, you need to review it cross-functionally. It requires a collaboration of talent acquisition/recruitment, HR, L&D professionals who should work together to refine their approach and bring in expertise from those who can provide pivotal insights. Learning and development teams are starting to play a key role in working as strategic partners to build a talent pipeline so their input is valuable.

3. Speak to line managers

While recruitment teams are usually in charge of the hiring process, no one knows the job roles better than the line managers and the team the new hire will be part of. By discussing the roles with them, you can get a better insight into what gaps need to be filled and expectations of their roles.

You may wish to work with them to prioritise which roles would benefit most to take a skills based approach.

4. Carry out a job analysis

Once you have analysed your current hiring process and identified areas of improvement, you need drill down and review how you are creating roles. To do this, you must understand the essential skills and competencies needed to succeed within each job role you recruit for and ensure these are clearly listed within the job description.

Consider both soft skills and technical skills to create a well-rounded offering.

5. Conduct skill assessments

Next, you should develop assessment methods which can be included within the interview process or as part of a screening process. This will evaluate candidates' skills and could include:

Behavioural interviews
Skills based tests focusing on job requirements
Practical simulations
Game-based assessments

By using different assessment methods, you can understand candidates' skills and competencies which allows you to make accurate and informed hiring decisions and build a fuller picture of candidate’s abilities.

6. Look at growth potential alongside current skillset

A successful skills based hiring strategy should focus on identifying candidates with both immediate skills and the potential for future growth. It is also important to consider their ability to take on new skills with ease. For example:

Are they adaptable?
Can you identify any leadership skills that could be beneficial for a future role?
Do they have a strong work ethic?

By looking beyond the role itself, you can ensure you are bringing the right people through the door. It will also help with succession planning and creating a robust talent pipeline which can set your organisation up for success.

7. Undertake candidate matching

Once you have a clear understanding of the required skills for a role and have assessed candidates' abilities, it's time to match the right people to the right jobs. This involves carefully reviewing candidates' skills and experience against the specific job requirements. By taking this approach, you can identify the best fit for each role.

Additionally, if a candidate's skills and experience align more closely with a different position, you can encourage them explore that opportunity.

8. Involve diversity and inclusion in your hiring practices

The right skills are important for the hiring process, but it can be a somewhat limiting approach to recruitment.

By incorporating diversity and inclusion principles into your hiring practices, you can broaden your talent pool and attract a wider range of candidates with diverse skills and perspectives.

Three examples of skills-based hiring

To provide further insight into how skills based hiring works, let’s look at some examples of how it can be used into the recruitment process.

Example one: Customer service representative

A retail company could use skills based hiring to assess a customer service representative's communication and problem-solving abilities. They may wish to do so with:

Simulated customer interactions: Present candidates with realistic customer scenarios, such as a product return or complaint. How they respond would be evaluated based on their ability to empathise, provide solutions, and maintain a positive attitude under pressure.
Role-play exercises: Pair the candidate with an interviewer to role-play customer service scenario which requires them to remain calm and professional. This would allow the company to assess their interpersonal skills, active listening, and how they respond to tense situations

Example two: Front-end developer

A computer software company could use skills based hiring to assess a front-end developer's knowledge of HTML. This may involve:

Coding challenges: Give candidates specific coding tasks, such as creating a simple web page or implementing a HTML feature. Their approach to this task and solutions they provide will then be evaluated based on accuracy and efficiency.
Technical interviews: Ask complex questions about HTML concepts and common pitfalls. Their understanding of these topics would help showcase their range of problem-solving skills.

Example three: Graphic designer

A design agency could use skills-based hiring to assess a graphic designer's proficiency in Adobe Photoshop and InDesign through:

Portfolio review: Ask each candidate to submit a portfolio of their previous work, highlighting their use of Photoshop and InDesign. The agency would evaluate their ability to create visually appealing designs, use typography effectively, and follow design principles.
Practical design exercises: Provide candidates with a specific design task, such as creating a social media graphic or brochure. They would be assessed on their ability to use the software tools efficiently, produce high-quality designs, and meet deadlines.

Setting your organisation up for success with skills-based hiring practices

While skills-based hiring is a method that can lead to success when implemented in the right way, there are some points to be aware of.

Consider soft skills as well as technical skills

In a skills-based hiring approach, it's crucial to consider both hard and soft skills. While technical skills are essential for performing specific tasks, workplace skills like communication, problem-solving, and teamwork are equally important for collaboration, adaptability, and overall job performance.

Support new hires during and after onboarding

Once you've hired the right people, it's important to support them as they transition into your organisation. This includes providing adequate training, mentorship, and opportunities for targeted skill development. It is also important to consider that if a new employee has been hired on a skills-first approach, they could be starting with different levels of experience. This means that onboarding may need to be more tailored as you transition to this approach.

Create a culture of continuous learning

It’s not just about finding candidates with the right skills; this method of recruiting also must be embedded into the company culture. A culture of continuous learning is essential to ensure that employees are constantly developing their skills and knowledge. This will help to attract the right talent and create an adaptable workforce that can upskill effectively.

Look at skills across the team

While there will be a position to be filled which requires a specific set of skills, consider how that team currently runs and the structure it has. From this, you can ask if there are any supplementary skills that are missing that could be included in the hiring process? This will help with any skills gaps that may be present.

Communicate skills based hiring approach for company buy-in

To ensure a seamless transition to skills-based hiring, effective communication is key. Ensure you articulate the strategic goals and how this approach aligns with the organisation's overall vision to leadership. By educating stakeholders and the leadership team on the process, the importance of focusing on skills, and how to evaluate candidates effectively, you are more likely get company buy-in and create a smooth process overall.

Using Access Learning to get top talent through the door

With the help of the right technology and tools, you can set your skills based hiring process up successfully and bring top talent into your workforce.

Find out how our Digital Learning Solutions can help you to retain top talent, stay compliant and plan your path to success. Why not book a personalised demo or contact us if you have any questions.

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