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The Most Ambiguous Trend in Recruiting: Transforming Skills-Based Hiring Into a Concrete, Practical

May 16, 2024 · ERE Recruiting Conference Spring 2024 ·

About this video

Skills-based hiring gets talked about mostly in terms of what it isn't: no degree requirement, no fixed years of experience. What it actually takes to run is a different question, and the answer starts with treating hiring the way a kitchen treats a recipe: know your ingredients, know your must-haves versus nice-to-haves, and don't assume you need every item on the list to make something good.

Labor market data sets up the problem. Job openings continue to outpace the number of unemployed workers, a large share of current skills are expected to be disrupted within five years, and most workers will need retraining before the end of the decade. Yet surveyed companies rank removing degree requirements near the bottom of their strategies for closing skills gaps, favoring internal reskilling and promotion instead. The gap between those priorities and what candidates need from employers is where skills-based hiring earns its keep.

Practical steps for building it into a hiring process include:

  • Running a lightweight job analysis before writing a requisition: asking hiring managers what's needed day one versus what can be trained, and separating must-haves from nice-to-haves.
  • Trimming job descriptions to short, scannable bullet points, since candidates spend only seconds reading the requirements section before deciding whether to apply.
  • Sourcing from adjacent industries rather than the usual list of competitors, identifying transferable skills and comparable functions in unrelated sectors, and using AI tools to research where else that talent profile exists.
  • Separating hard skills from soft skills in the interview process, and weighting learning agility alongside proven experience.
  • Using structured interviews with trained interviewers, pre-planned questions, and a scoring rubric, combining behavioral questions about past situations with situational questions about hypothetical or constrained scenarios.
  • Applying the same process consistently to every candidate for a given role, and treating any single assessment method with skepticism rather than as a final verdict.

One example involves opening up a technical sales role beyond the expected list of competitors to include candidates from an unrelated consumer industry; the hire went on to multiple promotions and an eventual officer role. Another involves pressing a hiring manager to articulate, in thirty seconds, what actually makes a role compelling, then discovering none of it was in the written job description at all.