Skills-based hiring in 2024: will it replace the classic CV

The current labor market is remarkably distinct from what it was ten years ago. There are fewer candidates with the ‘traditional’ four-year degree background; instead, an increasing number of young individuals prefer online education over college, more experienced professionals are pursuing portfolio careers (holding multiple jobs in sometimes unrelated fields), and many are actively improving their skills in a different domain. Each of these experts possesses important skills, yet you may not identify them among numerous resumes. Thus, to guarantee that recruiters are selecting the appropriate candidates for their open roles, skills-based hiring has become a leading strategy in talent acquisition. From jobs to skills, the hiring process is evolving, emphasizing abilities over traditional qualifications.

Is the CV obsolete?

No organization would employ individuals based solely on a single piece of information. You require skills and the capability to present those skills in multiple formats – such as a résumé, during an interview, and beyond. As Stella Adler famously stated, “You must possess a talent for your talent.” Investing time in crafting a strong résumé remains a worthwhile endeavor. Simply ensure that you aren’t overcommitting or replacing SEO tactics with genuine information on your resume. You will undergo testing, questioning, and interviews to ensure you are the right match for the position. From jobs to skills, the shift in focus also requires candidates to adapt to a broader range of assessment methods. Your résumé won’t advocate for itself – that’s why you must. You must present your skills, succinctly, and persuasively—whether during an exam or interview. Avoid allowing a .pdf or your LinkedIn profile to convey your entire narrative. Prepare to showcase your abilities and strengths in all possible ways to achieve success in a challenging job market.

What does skills-based hiring entail, and in what ways is it transforming the recruitment process?

Skills-based hiring is a recruitment strategy that methodically assesses candidates’ practical skills and competencies instead of relying on college degrees or other educational qualifications to evaluate their suitability for a job. In straightforward terms, skills-based recruitment emphasizes what the candidate is capable of, rather than solely their job titles or educational qualifications. That’s a strategic action since it enables you to draw from a larger talent base, enhance your confidence in evaluating candidates, and reduce your time-to-hire. From jobs to skills, this approach represents a paradigm shift in how recruiters assess potential employees.

Forecasting what’s ahead: Skills-focused recruitment gaining momentum

So, where is this movement going? Anticipate its growth, development, and establishment as a core element of hiring for innovative companies. Here’s what we can anticipate shortly:

The reduction of conventional resumes

Portfolios, project-driven evaluations, and competency tests are superseding resumes at numerous top tech firms and in more forward-thinking sectors. Don’t be astonished if you notice the demise of the traditional “list-every-job-you’ve-ever-had” resume, supplanted by targeted showcases of abilities and work examples. From jobs to skills, the focus is shifting toward what candidates can deliver.

Expansion in credentialing platforms

Organizations such as Coursera, Udacity, and LinkedIn Learning are currently influencing this future, and we can expect to see additional platforms providing micro-credentials. From jobs to skills, this transition highlights the growing importance of certifications and practical abilities over traditional education. As businesses emphasize certifications and skills, credentialing services are emerging as the new norm for demonstrating competencies without traditional education.

Increased cross-industry talent movement

Prioritizing skills instead of experience significantly expands your candidate pool. From jobs to skills, this shift enables finance experts with data analysis skills to transition to tech positions, educators to training jobs, and so forth. Finance experts with data analysis skills could transition to tech positions, educators to training jobs, and so forth. This exchange of ideas enhances company culture and introduces new viewpoints to industries that could otherwise stay closed off.

What skills-focused recruitment signifies for drawing in top talent?

For talent acquisition teams, hiring based on skills involves reconsidering not just their recruitment methods but also the profiles of candidates they seek. From jobs to skills, this transition is redefining how organizations approach hiring in a challenging talent market. Here’s how it is influencing hiring in the challenging talent market:

Attracting a wider talent pool

Hiring based on skills allows for the inclusion of unconventional candidates who offer varied experiences, non-linear journeys, and often underestimated abilities. For example, employing a self-taught coder who has an impressive portfolio might offer more creativity than a traditional computer science graduate. This shift from jobs to skills ensures a broader and more diverse pool of applicants.

Minimize hiring bias and enhance diversity

By prioritizing skills over background, unconscious bias related to educational qualifications can be reduced. This method not only improves diversity but, as studies indicate, may result in better business results. After all, when was the last instance you observed a “degree from a well-regarded university” genuinely leading to daily exceptional performance? From jobs to skills, organizations are fostering inclusion while focusing on measurable competencies rather than assumptions tied to degrees.

Emphasize adaptability and lifelong learning

Skills-based hiring involves more than just identifying someone who can program in Python at present. It involves discovering individuals with the flexibility to acquire whatever comes next. By emphasizing these traits, organizations are establishing the foundation for a nimble, prepared workforce that can adapt to change. From jobs to skills, this approach builds resilience and readiness for the future.

Implications for employer branding

Hiring based on skills is a significant change—but it only works if your brand backs it. Here’s how to make sure your employer branding connects with the skills-focused market and the shift from jobs to skills. 

Emphasize growth opportunities

Today’s employees prioritize advancement and the chance to acquire new skills while working. Communicate in your employer brand that your company promotes skill enhancement, and highlight instances of employees who have changed roles or gained new skills during their time with your organization.

Establish your brand as an inclusive employer

If you are genuinely embracing skills-based hiring, make it evident. Highlight that you embrace various backgrounds, honor distinct career journeys, and value skills more than academic credentials. From jobs to skills, this approach helps attract exceptional talent and reinforces a welcoming culture. By actively endorsing nontraditional paths, you’ll draw in exceptional talent that appreciates a welcoming culture.

How can companies thrive through skills-based recruitment?

We gathered information on the factors that contribute to successful skills-based hiring. Here are five effective suggestions for employers aiming to expand their recruitment perspective. 

• Question the assumptions in your talent strategy

Consider being more open-minded. Our information suggests that the educational barrier is disappearing even in positions that usually require a degree. Overcoming tradition can, of course, be challenging. Thus, employers should consider whether the way this job seeker gained their skills is significant if they possess the necessary abilities. This shift is important as we move from jobs to skills, focusing on actual capabilities rather than traditional educational backgrounds. With the company’s new online platform, candidates don’t apply for specific positions—they apply to defined skill areas, undergo skill assessments, and receive referrals for the most suitable jobs according to their skill sets. 

• Identify the skills required

Our study indicates that skills-oriented job advertisements feature a greater quantity of skills compared to conventional job ads. Conventional job postings for data scientists typically mention around 28 required skills, while skills-focused advertisements for the same position can highlight up to 37. Ads focused on skills particularly emphasize transferable skills like collaboration and communication, which serve as a basis for success in any role. Hence, employers recruiting based on skills should possess a thorough knowledge of those skills and promote them accordingly. This requires the capacity to forecast skill requirements dynamically along with a thorough comprehension of present and future skill sets. The shift from jobs to skills is evident in this focus on skill sets over formal qualifications. 

• Enhance your proficiency evaluation strategy

The major danger in recruiting based on abilities instead of a degree, particularly one from a reputable institution, is the absence of “proxy proof” regarding the qualifications of candidates. Rather, employers must acquire that evidence by evaluating and examining applicants’ abilities, a task they frequently aren’t ready for or lack the knowledge to execute effectively. They may consider additional proxies: micro-credentials (badges earned from brief, frequently digital, courses), finishing online courses, endorsements, or the outcomes of particular projects. They may also assess candidates by requiring them to showcase skills: coding, undergoing a trial phase, or engaging in a game-based simulation that evaluates abilities, for instance. Innovative tools utilizing GenAI can replicate genuine interactions immensely well with minimal effort needed from the employer; they serve as an effective method to evaluate thousands of candidates efficiently, aligning with the broader trend of moving from jobs to skills. 

• Foster integration and a welcoming culture

At times, the primary obstacle to skills-based hiring is culture. Managers prefer to recruit individuals who attended the same educational institutions as they did. Recruiters are hesitant to take chances on individuals from unconventional backgrounds. Numerous corporate executives adhered to conventional paths and anticipated that their successors would follow suit. In this type of atmosphere, individuals hired for their skills might sense discrimination or simply feel unwelcome. As employers become more aware of their diversity, equity, and inclusion initiatives relating to gender, race, and other factors, they may also strive for diversity in the educational and career experiences of their employees. Some strategies to think about include making sure that recruiting panel members possess varied educational qualifications, reviewing candidates’ degree details from their CVs, training hiring managers to minimize unconscious bias, or establishing goals for candidates with alternative skills. As employers transition from jobs to skills, they become more aware of their diversity, equity, and inclusion initiatives related to gender, race, and other factors. In this evolving landscape, the shift from jobs to skills can redefine what success looks like in an organization.

• Continue focusing on skills—it’s more than just recruiting

Once employers have integrated skills-based hires into their teams, they should keep aiding those employees’ career advancement. As companies transition from jobs to skills, they begin to recognize the full potential of their workforce beyond traditional job titles. Advancements should rely on abilities, just like other internal transfers and talent choices. Various talent marketplace platforms assist in enabling this. Novartis’s internal talent marketplace, powered by AI, leverages data on employees’ skills and ambitions to forecast, align, and present roles and projects, for instance. Nonetheless, such a change necessitates a considerable shift in the organization’s mindset—from “talent hoarding” to “talent sharing.” Both managers and the HR function must become adept at facilitating skills-based, adaptable career trajectories, with senior leaders serving as crucial role models in this endeavor.

Conclusion: A recruitment transformation to observe

Skills-based hiring is not just a trend; it marks the start of a crucial transformation in talent acquisition. From jobs to skills, this shift shows we’re moving into a time where what you can do matters more than your degrees, and businesses that go with the flow will see big benefits. As we move into a time when practical skills take precedence over degrees, businesses that adjust will benefit greatly. Companies are shifting from jobs to skills, focusing on abilities over degrees to hire top talent. Envision a team where every member is present due to their ability to perform, not because they attended the “correct” university. Now that’s a future worth employing for. Will your company take the initiative in developing this inclusive, skill-focused workforce, or remain stuck in the outdated hiring approach? The decision is yours, yet the future waits for nobody.