Using a skill-based hiring technique increases workplace diversity and productivity. It also reduces recruitment expenses and closes skill gaps. Thus, firms have elected to replace degree-based hiring with skills-based hiring.
‘Skills over degrees’ is an innovative approach to hiring. It represents a more fair, inclusive, and rewarding strategy for attracting top talent. In a candidate shortage, skill-based hiring addresses a variety of problems caused by degree requirements.
In addition, HR performance management tools can also assist firms with administering employee upskill courses for their existing candidates.
Here are four reasons why your company should focus on abilities over degrees:
Locate Skillful Applicants
A poor hire costs a company around INR 25,000. However, losing excellent employees costs close to INR 50,000 per employee.
Skills-based hiring focuses on a candidate’s abilities and competencies. This provides businesses with a clear picture of their ideal applicant. It also gives job seekers a realistic preview of the position’s demands and duties.
A college education helps shape an individual’s critical soft skills. Yet, it does not guarantee that a candidate possesses the necessary technical skills.
Hiring managers may feel more confident in a candidate’s interest if they have a degree. It may also provide exposure to a specific topic or course of study. Yet, it is not a reliable predictor of job performance or a candidate’s suitability for a position. It is only a supposition.
Skill-based Hiring Improves Employee Retention
The great resignation has dawned. Employee retention is currently one of the most significant concerns for firms worldwide. When using skills-based hiring, employers must understand the abilities required to succeed.
A skills-based examination simulates real-life experience in the job role. This provides the candidates with a more accurate representation of the job expectations. In general, this leads to greater job satisfaction.
Proven Skills Contribute More Than Theoretical Knowledge
Besides, employee upskilling is on the rise. HR performance management tools have played a key role in this development. Firms are seeking to upskill their existing employees. They are doing this to maintain a good employee retention figure.
The number of firms providing skill development programs to their employees is increasing. Employees with a degree want better pay due to their investment in education.
However, college graduates are more inclined to change jobs frequently in search of better opportunity. The best solution to this problem is employee upskilling using an HRMS Platform.
Offers Access to a Larger Talent Pool
Reducing candidate application requirements helps to reduce impediments. Degrees do not necessarily prove an applicant’s ability to fulfill the task.
Adopting a skills-based hiring approach exposes your company to candidates who earned their talents through non-traditional means such as on-the-job training or self-teaching. Thus, employers now have access to a bigger talent pool.
Enhances Workplace Diversity
In the recruitment industry, there is a growing emphasis on the value of diversity. Inclusion, creativity, and productivity enhance a company’s bottom-line performance.
Financial incentives should be one of many motivators for firms to prioritize diversity. Yet, skill-based hiring can help increase workforce diversity. Although, let us understand how a university degree contributes to the problem.
Skills-based hiring is based on selecting the job candidate with the skill set that best matches the role’s needs. Hiring based on education only sometimes favors underrepresented groups. Disadvantaged people in the educational system cannot receive the same degree of education.
This could be due to resource and funding constraints. Skills-based hiring does, however, eliminate the unconscious bias associated with pedigree. It makes it far more accessible to candidates from various socioeconomic positions.
Diversity has emerged as a top priority for both corporations and candidates. It impacts a company’s bottom line and is a major deciding factor for job searchers.
Last Thoughts
A degree can only get you a job; it cannot help you advance your career. It is your skill that attracts employers, clients, and managers, and it is a skill that raises or lowers a person. We are in a qualified candidate shortage.
In addition, this situation has arrived when over a third of the workforce lacks a college diploma. This should state the need to reconsider the value of degrees.
Major corporations are now emphasizing skills over degrees. The momentum is building for enterprises of all sizes to follow suit. The benefits of skills-based hiring are plain. It has a history of enhancing employee retention, hiring quality, and so on.
How Can an HRMS Platform Help You?
ConfluxHR addresses most of your hiring, onboarding, and upskilling problems. Our robust HRMS Platform can assist you in the following:
- Scheduling and Conducting Interviews with Candidates
- Administering Upskill Courses to Existing Employees
- Leave and Attendance Management
- Employee Performance Management
- Onboarding and Exit Process Management
Also, our HR performance management tools can help you retain more employees for your organization.
Start Onboarding and Retaining Better with ConfluxHR!