In 2024, Skills-based hiring will definitively replace the classic CV so employers who don’t adopt a skills-based mindset risk being left behind !
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Over 70% of companies agreed that all forms of skills-based hiring are more effective than resumes.
?? 39% of companies are planning to increase their spend on skills-based hiring in 2024, and 58% of companies plan to use skills-based hiring more in future.
??Hybrid and remote companies tackle this challenge by tapping into global talent pools to find the best candidates.
?? Skills-based hiring is becoming a dominant hiring practice and skills-based thinking is beginning to extend beyond recruitment and into our ways of working. Employers who don’t adopt a skills-based mindset risk being left behind and employers who continue to hire for education and experience before skills will also miss out on top talent, according to a new interesting research published by TestGorilla entitled "The State of Skills-Based Hiring 2023" using data from a survey of 1,500 employers and 1,500 employees in June 2023 and based in 5 countries.
?Skills-based hiring delivers measurable benefits across the recruitment process
Researchers noted that among employers who adopted skills-based recruiting, improved all recruiting-related KPIs :
?? 88% reduced mis-hires : A mis-hire occurs when a business appoints an unsuitable candidate to an open role. ?? Mis-hires can cost a business up to 24 times the employee’s annual salary
?? 88% improved diversity
??74% reduced cost-to-hire
?? 82% reduced total time-to-hire
?? 89% increased employee retention
?? In contrast, employers who continue to hire for education and experience before skills will also miss out on top talent.
?Hybrid and remote organizations are leading the way
Researchers found that the total percentage of remote and hybrid companies using skills-based hiring is 64% and 78%, while in-person companies stand at 57%.
So hybrid and remote companies tackle the challenge of findings talent by tapping into global talent pools to find the best candidates
?Main challenges with Resume
Researchers noticed that employers are struggling with the limitations of resumes:
?51% of employers identify with the challenge of determining whether a resume is accurate
?43% of employers find it difficult to rank applicants using resumes
? 43% of employers say they find it difficult to determine applicants’ skills using resumes
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?Employers can identify Top Talent globally with skills-based hiring
??Researchers found that the majority of employers identified skills-based hiring assessments, which include assignments, cognitive- ability tests, role-specific skills tests, and language tests, as more effective predictors of on-thejob success than resumes and CVs.
?Skills-based hiring helps to resolve diversity challenges
Researchers noticed below improvements for employees :
?? Organizations that don’t put skills first also risk falling behind in terms of diversity, which is now a key objective for 85% of them:
? 66% of employees agree or strongly agree they have gained access to new employment opportunities through skills-based assessments
? This figure rises to 73% when we only look at data from Asian and Arab employees and 75% when we only look at the data from Black employees
?Skills-based hiring as more effective than resumes
Although the difference is marginal in percentage terms, this is a seismic shift, considering employers have depended almost universally on resume screening for decades.
Researchers found that skills-based hiring has overtaken resumes when it comes to perceived effectiveness, and employers’ overall confidence in it has significantly increased.
?? Finally researchers conclude that to create an equitable future for recruitment, where data-driven hiring processes are the norm, time- and cost-to-hire are low, retention is high and mis-hires are a rarity, employers must go all-in on skills-based hiring. Since the majority of employers are still putting resumes (82% of the employers have used resumes to hire in the past 12 months), rather than skills, first, researchers believed that we're yet to see the full potential of skills-based hiring...
Thank you ?? TestGorilla researchers team for these insightful findings: Wouter Durville Otto Verhage and cited persons in this report Ali Uren ?? Eryn Marshall Asha Aravindakshan
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People Tech with AI | Co-founder at Clous
1 年How can skills-based hiring be executed efficiently?
Unleashing talent potential with real-time people analytics: Empowering HR & leaders to enhance employee experience, save time, and cultivate a culture of high performance and well-being through personal leadership
1 年Nicolas BEHBAHANI indeed very relevant and in addition to this. To drive the success of skill based hiring, understanding what employees need to let those skills thrive is of increasing importance. To shape the best conditions for employees, requires insight about what drives the effectiveness of those skills. The degree of passion for the job role, the rock solid belief in own abilities (self efficacy) and the motivation to grow indicates this perfectly. Scientific study shows that the more these factors are in place, the more effective and satisfied employees are. On top of this, it is a mediator to strengthen engagement in the job role. The more conscious employees are about what they need, the organization (HR, Leadership) can bring in the right conditions. #yucap
CHRO ? Top Voice ? Transformative Leadership ? Guiding Organizations Through Change ? Building Organizational & Leadership Capability ? ex JPM/Headstrong/Reliance/Randstad
1 年The winds of change are in the air - thanks for the research Nicolas BEHBAHANI and TestGorilla. Many employers will associate higher levels of cognition and language skills with graduates from premier colleges - a natural bias given the tougher toll gates they pass through to secure admission and graduate + the quality of experience they would have had access to. The digital world flipped the story of access to quality education and experiences. Recruiter challenge now is to find their 'Gold' in the mine of candidates. Testing in this context becomes crucial to take some smart bets on talent along with a multi-interviewer feedback. Personally, I strongly advocate taking calculated risks on smart talent who may not check the standard requirements for the role. E.g. I have hired medical professionals enthusiastic about beauty industry and looking for temporary WFH opportunities in beauty sales research - where they discover global product trends & do preliminary document research to create a new product suggestion pipeline for the R&D lab.
CHRO / FMCG Pharma BFSI Energy IT/Start Up specialist/HR Leader who excels in linking business strategy to people agenda. That extra zing comes with a blend of passion and values
1 年This is great news! While we all Know skill based hiring works I would like to just share my experience and observation . esp with ref to mass hiring or even niche positions where the timelines are critical hiring teams and managers would like to use only resume and few questions as it helps close the process fast . But the merits of competency based hiring are many and it requires lot of discipline and push from the HR team along with the top most abusiness heads / leaders to ensure that managers indeed follow the process and don’t avoid it just because it is long drawn and more exhaustive, So It is a culture change as well that we have to drive in the organisation along with the Business
Specializes in Solving Brain Drain With Purpose Led Brands \ Links Entrepreneurial Skill To Delivery + Stops Wasting Wisdom\ Kiikstart Founder+ The Circular Workplace??\LinkedIn Top Voice\ Transform Global Ambassador
1 年Nicolas BEHBAHANI appreciate the call out and I am excited to see this become more common place as it will also have positive impact on how organizations approach initiatives around learning and growth and succession. We are looking at future potential as part of this so the mechanisms will need to be present to fully develop each person.