Skills-based hiring is a recruitment approach that prioritises a candidate’s abilities and competencies over traditional credentials such as degrees, job titles, and years of experience. Instead of relying on proxies like education and previous job titles, it evaluates applicants based on their ability to perform specific tasks required for the role.
This shift is becoming increasingly relevant in today’s job market, where rapid technological advancements and evolving job roles demand a workforce with demonstrable skills rather than just formal qualifications. Many organisations are struggling to fill technical positions due to talent shortages, and skills-based hiring offers a practical solution to bridge this gap.
What is a skills-based approach?
A skills-based approach to hiring focuses on objectively assessing candidates’ competencies, ensuring they meet the specific demands of a role. This method is particularly effective in industries where practical abilities matter more than traditional qualifications, such as software development, digital marketing, and engineering.
Employers who adopt this approach can widen their talent pool by considering candidates from non-traditional backgrounds. For example, a self-taught programmer with a strong portfolio may outperform a computer science graduate with limited practical experience. By focusing on what a candidate can do rather than where they studied or how many years they have worked, businesses can attract and retain highly capable employees.
Benefits of a skills-based approach
- Reduces the risk of mishires
Traditional hiring methods often lead to poor hires due to reliance on credentials that do not guarantee competency. A skills-based approach ensures candidates can perform required tasks before they are hired. - Increases diversity and inclusion
By removing unnecessary degree requirements, organisations open doors to a broader range of candidates, promoting a more diverse workforce. - Improves retention rates
Candidates hired based on their skills and alignment with role requirements are more likely to succeed and stay in their positions long-term. - Enhances agility in hiring
Organisations can fill roles more quickly by focusing on skills, rather than waiting for the ‘perfect’ candidate with traditional credentials.
What is a skills-based job description?
A skills-based job description clearly outlines the key competencies and technical abilities required for a role rather than focusing on degrees, years of experience, or generic job titles.
Key elements of a skills-based job description:
- Essential skills and competencies
Specific skills needed for the role (e.g., coding languages for a software engineer or analytical skills for a data scientist). - Task-based expectations
What the candidate will be expected to do in the role. - Performance metrics
How success in the role will be measured. - Flexible qualification requirements
Instead of stating ‘Must have a degree in X’, a more inclusive approach would be ‘Proficiency in X required, regardless of how it was acquired’.
This approach ensures that job adverts attract candidates based on their abilities, rather than deterring qualified individuals who may lack formal credentials but possess the necessary skills.
How do you measure skills?
Measuring skills effectively is critical to making informed hiring decisions. The most effective methods go beyond traditional CV screening and interviews, incorporating objective assessments that validate a candidate’s abilities.
Methods for measuring skills:
- Psychometric Testing
Standardised and valid psychometric tests that assess cognitive abilities, personality traits, and work-related competencies to ensure a good fit between the candidate and the role. - Skills Assessments
Practical psychometric tests tailored to specific job functions, such as coding challenges for developers or case study exercises for consultants. - Work Samples & Portfolio Reviews
Reviewing actual work products (e.g., designs, reports, or projects) to assess a candidate’s capabilities. - Situational Judgment Tests (SJTs)
Scenarios where candidates choose the best response based on real workplace challenges. - Competency-Based Interviews
Structured interviews focusing on specific skills through past experiences and hypothetical situations.
The shift towards skills-based hiring in a competitive market
As organisations struggle with talent shortages, especially in technical and specialised fields, shifting to a skills-based hiring approach can provide a competitive advantage. Many talented professionals develop their skills through alternative means such as online courses, bootcamps, or self-study, making traditional hiring filters increasingly outdated.
By adopting a skills-first mindset, employers can:
- Access a larger and more diverse talent pool.
- Reduce hiring biases associated with education and experience.
- Improve job performance and employee satisfaction.
Reduce hiring risks with Clevry’s skills-based hiring platform
At Clevry, we help organisations adopt a skills-based hiring strategy through our advanced psychometric assessments and skills-testing platform. Our suite of assessments provides a science-backed approach to measuring cognitive abilities, behavioural traits, and job-specific competencies, ensuring businesses hire candidates who are truly equipped for the role.
Why choose Clevry?
- Objective skills assessment
Identify the best candidates based on their abilities, not just their CVs. - Customisable testing solutions
Assess skills tailored to the specific needs of your roles. - Data-driven hiring decisions
Reduce bias and make more informed hiring choices.
Switching to skills-based hiring can dramatically reduce the risk of poor hires and improve business performance. To see how our platform can help transform your hiring process, book a quick demo with one of the team now and see for yourself.
