For as long as anyone can remember, the job description represents 90% of a job ad. Both companies and recruitment agencies believed that listing the job duties would help candidates assess their ability to do the job properly. However, now we know better. The skill-based approach to recruitment is the strongest emerging trend in the talent market.
Also, recent studies support this approach, based on the positive hiring and employee retention results of companies that already use this hiring method.
What Does the Skill-Based Approach to Recruitment Involve?
So, what does this new hiring method involve? The Olinio recruitment team knows everything about it and will explain it in detail. The process starts with carefully analysing every position in your organisational chart and identifying the core and soft skills needed.
Once you have this data, create a skills inventory for each position, just like you did with the job description in the past. Now, forget about the job description and job title and refer to the skillset whenever you need to:
- Hire new people
- Perform employee assessment
- Evaluate employees for promotions or internal recruiting for vacancies.
This is how a top player in the consumer goods industry reshaped its HR and recruitment processes and experienced a significant improvement in talent acquisition and retention.
The Benefits of Skill-Based Recruitment for Companies and Employees
Basing your recruitment process on skills, rather than the candidate’s previous job titles or degrees has many benefits. Firstly, you can eliminate from the search CVs filled with impressive-looking job titles but little skills matching your needs.
Secondly, you can even identify employees within your organisation with the right skill set to do the job. The skills inventory is a great tool for identifying untapped skills within your team. Thus, you can assign your employees to more exciting and creative projects and help them grow professionally.
A Deloitte study uncovered several key benefits of the skill-based approach to recruitment for companies and employees:
1. Significant Increase in Finding the Right Fit for a Vacancy
Companies using a skill inventory in the job ad are 107% more likely to find a good hire for each vacancy they are recruiting for. Also, they are 98% more likely to retain top performers.
This is extremely important in a world where the competition for talented employees is almost as intense as the battle for market share and new customers.
2. Improved Employer Branding
Employers using a skill-based approach to HR and recruitment also have a positive image among candidates. The cited study found that companies using this method are:
- 98% more likely to be perceived as a great place for personal and professional development
- 79% more likely to create a workplace providing a positive employee experience
- 49% more likely to create an inclusive work environment.
In this way, companies can fight the long-standing trend that good employees often leave toxic workplaces and managers, rather than difficult jobs.
3. Employees Prefer Companies that Value Skills Over Degrees
According to the Deloitte study, candidates also favour the skill-based approach to hiring and employee management. Thus:
- 59% of employees believe the skill-based practice would improve their experience at work
- 66% of them say they are more likely to work for and stay loyal to an employer that values their skills more than their previous job titles and degrees.
4. Improved Mobility within the Organisation
Finally, a skill-based approach to recruitment and talent retention helps organisations become more agile and face disruptions through greater workforce mobility. Instead of looking for the best fit for a key position outside the company, they can recruit from within it, by promoting employees who have the right skills inventory.
Main Takeaways
All these findings suggest one thing: companies need to start creating people-centric jobs and work environments. By focusing on skills, rather than degrees and job duties, organisations have significantly more chances to attract and retain top talent.
If you need help with creating a skill-based recruitment process, get in touch with Olinio. Our experienced team of recruiters is ready to help you find the best hire for every vacancy!