The success of any organisation depends on the quality of its workforce. Top talent drives innovation, productivity, and business growth. However, hiring skilled employees is only part of the challenge—retaining them is just as crucial. In an increasingly competitive job market, businesses that struggle with high turnover rates face significant costs in recruitment, training, and lost productivity.
Traditional hiring methods have often focused on credentials, such as degrees and previous job titles, as indicators of a candidate’s potential. However, this approach can overlook individuals with strong capabilities who may not have formal qualifications but possess the necessary skills to excel. The shift towards skills-based hiring provides a more effective way to attract, assess, and retain high-performing employees, particularly in technical roles where talent shortages are a pressing concern.
How to attract and retain top talent
Attracting top talent requires more than offering competitive salaries. Employees seek roles where they can contribute meaningfully, develop their skills, and feel valued. Skills-based hiring plays a significant role in fostering an environment where employees see clear career paths and opportunities for growth, making them more likely to stay with an organisation long term.
Companies that focus on skills-based hiring can:
- Identify the best candidates regardless of their educational background.
- Create fair and inclusive hiring practices.
- Ensure new hires are equipped to succeed from day one.
- Provide employees with opportunities to grow into new roles.
What are skills-based qualifications?
Skills-based hiring prioritises practical abilities over formal education and experience. Instead of relying on traditional qualifications, employers assess candidates based on demonstrable skills, competencies, and problem-solving abilities.
Some key elements of skills-based hiring include:
- Psychometric testing
Measuring cognitive abilities, personality traits, and problem-solving skills. - Work sample tests
Evaluating how a candidate performs in tasks relevant to the role. - Competency-based interviews
Asking situational questions to assess real-world application of skills. - Technical assessments
Measuring proficiency in job-specific tasks, particularly in technical fields such as IT, engineering, and data analysis.
Using these methods ensures that hiring decisions are based on actual capabilities rather than assumptions based on education or past job titles.
What happens when you get it wrong?
A poor hiring decision can have long-term repercussions. When organisations rely too heavily on credentials rather than skills, they risk:
- Mis-hiring
Candidates may look good on paper but lack the practical ability to perform the role effectively. - High turnover
Employees who struggle in their roles due to mismatched skills are more likely to leave, leading to additional recruitment and training costs. - Lower productivity
When employees are not the right fit for their roles, efficiency suffers. - Reduced morale
Hiring mistakes create additional strain on existing employees who must compensate for underperforming team members.
How skills-based hiring improves employee retention
1. Prevents mis-hiring
By assessing candidates’ cognitive abilities before they are hired, organisations can reduce the risk of bringing in individuals who are not the right fit. Skills-based hiring ensures that employees have the necessary capabilities to perform well from day one, leading to higher job satisfaction and longer retention.
2. Enables two-way evaluations and candidate self-selection
When hiring processes include skills-based assessments, candidates gain a clearer understanding of the job’s expectations and requirements. This allows them to self-assess their suitability for the role. When candidates feel confident that their skills align with the position, they are more likely to be engaged and committed.
3. Promotes career development and internal mobility
Skills-based hiring doesn’t stop at recruitment—it extends to internal progression. By evaluating employees based on their skills rather than their tenure or credentials, businesses can:
- Identify potential for internal promotions.
- Support employees in acquiring new competencies.
- Encourage continuous learning and development.
When employees see that their organisation invests in their growth and offers opportunities for advancement, they are more likely to remain loyal and engaged.
4. Boosts employee confidence and motivation
Employees who are hired based on their skills—rather than arbitrary qualifications—are more likely to feel confident in their roles. This sense of competence leads to increased motivation, job satisfaction, and engagement, all of which contribute to long-term retention.
5. Cultivates a diverse and inclusive environment
Traditional hiring processes often favour candidates from privileged backgrounds who have had access to higher education. Skills-based hiring removes these barriers, allowing organisations to build diverse teams based on merit and capability rather than socio-economic advantages.
A more diverse workforce brings different perspectives, fosters creativity, and enhances problem-solving. Employees in inclusive workplaces are also more likely to feel valued and respected, increasing their likelihood of staying with the company.
The role of Clevry in skills-based hiring
To successfully implement skills-based hiring, businesses need effective tools for assessing candidate competencies. Clevry’s all-in-one hiring platform provides you with all the tools you need to start hiring for skills:
- Psychometric testing to measure cognitive and personality traits.
- Competency-based assessments to evaluate job-relevant skills.
- Bespoke hiring solutions tailored to company-specific needs.
- Data-driven insights to make objective, informed hiring decisions.
By leveraging our assessment suite, you can quickly improve hiring accuracy, enhance your employee retention, and build a workforce that’s equipped for long-term success.
Skills-based hiring is not just a trend—it’s a fundamental shift in how businesses attract, assess, and retain top talent. Moving beyond credentials and focusing on practical skills ensures that organisations hire individuals who are genuinely capable and motivated, reducing turnover and fostering a more engaged workforce.
By incorporating skills-based assessments and leveraging tools like the Clevry platform, businesses can create fairer, more effective hiring processes that support long-term employee retention and organisational growth.
