Skill-Based Hiring: Transitioning to a Competency-Based Economy
It is no secret that the job market is rapidly changing. As the world of work continues to evolve, so too must the strategies and tactics used by employers to attract, select, and retain the best talent. This is why the Society for Human Resource Management (SHRM) recently spoke up in support of skills-based hiring during an appearance before the House Committee on Education and the Workforce on June 22.
During the hearing, Mark Smith, SHRM’s director of HR thought leadership, spoke about the need for employers to shift away from traditional methods of recruitment and selection, such as degree-based hiring, and instead focus on a skills-based approach. According to Smith, this strategy allows employers to identify and recruit talent that may not have the necessary credentials, but can demonstrate the necessary skills and competencies needed to be successful in the role.
In his testimony, Smith highlighted the value of skills-based hiring, including the ability to access a larger and more diverse talent pool, as well as the potential to reduce the cost of recruiting. Additionally, Smith emphasized the importance of developing and implementing competency-based assessments to ensure that employers are able to accurately measure and evaluate candidates’ skill sets. He concluded his remarks by noting that “it is important to recognize the value of competency-based hiring and understand how it can help create a competitive advantage in the marketplace.”
As with any new strategy or concept, making the transition to competency-based hiring can be a challenging process. Employers must first identify the skills and competencies that are needed for the role, which can be a difficult task. Additionally, employers must invest in the necessary resources and tools to effectively assess and evaluate candidates’ skills. Finally, employers must be willing to invest the necessary time and effort to effectively implement the new strategy.
Fortunately, there are some steps employers can take to make the transition to skills-based hiring easier. For starters, employers should consider working with an experienced recruitment firm that specializes in competency-based assessments. These firms can provide valuable insights and advice on how to best develop and implement a competency-based hiring process. Additionally, employers should take the time to research and develop job descriptions that accurately reflect the skills and competencies needed to be successful in the role. Finally, employers should consider investing in the necessary resources and tools to ensure they are able to accurately measure and evaluate candidates’ skills and competencies.
Making the transition to competency-based hiring is an important step for employers looking to stay competitive in today’s rapidly changing job market. By taking the time to properly research, develop, and implement a skills-based hiring process, employers can better access a larger and more diverse talent pool while at the same time reducing the cost of recruiting. At the same time, employers can also ensure that they are able to accurately measure and evaluate candidates’ skills and competencies. Ultimately, this will help employers identify, select, and retain the best talent for their organization.
In closing, SHRM’s director of HR thought leadership, Mark Smith, believes that it is important to recognize the value of competency-based hiring and understand how it can help create a competitive advantage in the marketplace. By investing the necessary time and effort into developing and implementing a skills-based hiring process, employers can ensure they are able to access the best talent for their organization.
