Today, the traditional emphasis on academic qualifications and technical expertise is no longer enough. The rise of technology, automation, and artificial intelligence has redefined the skills required for success across industries. As repetitive tasks become automated, the focus shifts to human-centric capabilities—particularly soft skills that are more enduring and adaptable. Skills-based hiring is emerging as a crucial strategy for businesses that aim to remain competitive, agile, and future-proof.
The shift in required skills
The landscape of work is rapidly changing. As industries increasingly adopt advanced technologies, the nature of job tasks also transforms. Routine, technical tasks are being automated, while the demand for uniquely human skills—like communication, creativity, and emotional intelligence—grows. These skills, often termed “soft skills,” are no longer just complementary to technical knowledge; they are foundational to success in the modern workforce.
According to a study by Deloitte, by 2030, an estimated 63% of jobs will be based on soft skills. This shift reflects a broader trend: businesses now need employees who can navigate complex, unpredictable challenges, collaborate effectively, and think critically. These competencies are not easily taught in a classroom, but are integral to thriving in dynamic work environments.
Why skills-based hiring is crucial for businesses
As technology alters the fabric of work, companies must adapt their hiring processes to keep pace. The traditional approach of hiring based solely on technical expertise or academic background is no longer sufficient. Skills-based hiring, which evaluates candidates based on both technical capabilities and their soft skills, is a more effective way to ensure employees can grow and succeed in changing roles.
The businesses that embrace this strategy will be the ones most capable of responding to industry disruptions. Those that fail to do so risk falling behind. Why? Because skills-based hiring enables organisations to build a workforce that is more adaptable, innovative, and resilient. When companies prioritise attributes like problem-solving, communication, and cultural fit, they’re not just filling positions—they’re investing in the long-term health and agility of the organisation.
Hiring for potential, rather than just current abilities, allows companies to onboard employees who can evolve as roles and industries change. These individuals will be better equipped to handle the shifts in the job market and workplace brought about by technological advances.
How to assess skills effectively
Despite the importance of soft skills, many companies struggle to assess them accurately during recruitment. A survey conducted by LinkedIn found that while 92% of hiring managers believe soft skills are more important than technical skills, 63% admitted they don’t know how to effectively evaluate them.
Free-form interviews, which often rely on gut instinct, can be inconsistent and unreliable in determining a candidate’s soft skills. Instead, structured interviews that are combined with validated assessments—such as cognitive ability tests and personality evaluations—have been shown to provide the highest correlation with job success. Research by Hunter & Schmidt supports this, showing that structured approaches result in more accurate predictions of future performance.
When evaluating a candidate’s soft skills, it’s essential to align the assessment criteria with the specific demands of the role. For instance, a position that requires leadership and collaboration will benefit from tests that gauge emotional intelligence, while a role in innovation may require assessments focused on creativity and problem-solving.
The benefits of skills-based hiring
Increased agility:
By focusing on skills that enable adaptability, businesses can respond more quickly to changes in their industry or market. Employees who possess strong soft skills are more flexible and open to learning, making them better suited to take on new challenges or shift roles as needed.
Better cultural fit:
Hiring based on a candidate’s alignment with the company’s culture and values creates a more cohesive and motivated workforce. Soft skills like teamwork, empathy, and conflict resolution are integral to maintaining a positive work environment, which directly impacts productivity and retention.
Higher retention rates:
When employees feel that their strengths are recognised and utilised, they are more likely to stay with the company. Skills-based hiring ensures that employees are not just qualified for the role but are also personally fulfilled by it.
Future-proofing the workforce:
Soft skills are more resistant to automation and technological obsolescence. By prioritising these in the hiring process, businesses are investing in employees who will remain valuable, even as technical requirements evolve.
Moving forward with skills-based hiring
As industries and job roles continue to evolve, skills-based hiring will become increasingly essential for businesses looking to remain competitive. This hiring approach goes beyond immediate technical needs and considers a candidate’s potential for long-term success within the organisation. By investing in individuals who possess the right combination of soft and hard skills, companies can create a workforce that is not only highly competent today but also prepared for the challenges of tomorrow.
At Clevry, we have over 30 years of experience helping companies assess and hire based on the skills that matter most. We work closely with our clients to identify the soft skills that are critical for success in specific roles and industries. Through a combination of structured interviews, cognitive testing, and personality questionnaires, we ensure that businesses are hiring for both present needs and future potential.
If you’d like to learn more about how skills-based hiring can benefit your business, feel free to reach out to us for a quick chat using the form below.
*Sources:
Deloitte Access Economics, 2019: https://www2.deloitte.com/au/en/pages/economics/articles/soft-skills-business-success.html
LinkedIn, 2019: https://business.linkedin.com/talent-solutions/blog/trends-and-research/2019/global-recruiting-trends-2019
