Capabilities-based Approach to Employment and Hiring

Introduction

Imagine you are looking for a new job. You have the skills and experience to do the work, but you don’t have the degree or the title that the employer wants. You know you can do the job well, but you can’t even get an interview. How frustrating is that?

Now imagine you are an employer looking for new talent. You have a lot of open positions, but you can’t find enough qualified candidates. You rely on degrees and titles to screen applicants, but you miss out on many talented people who have the skills you need. How costly is that?

These are the problems that many job seekers and employers face today. They are stuck in a system that values credentials over capabilities. A system that limits opportunities, diversity, and innovation. A system that needs to change.

In this article, we will explore a new way of thinking about jobs and hiring: the capabilities-based approach. We will explain what it is, why it matters, and how it works. We will also share some examples of how companies and workers have benefited from this approach. And we will show you how you can use this approach to find or create your dream job.

The Misleading Nature of Job Titles?

For thousands of years, humans have used job titles and qualifications to categorize people’s roles in society. This practice dates to the ancient Greeks, who divided their citizens into classes based on their occupations. Yet this approach has many flaws and can be misleading.

Job titles can only give us a vague idea of what a person does at their job, but they cannot capture the full range of their capabilities. For example, a person with the job title “Marketing Specialist” might do a lot of different things at work. They might create content, manage social media, or do market research, among other tasks. They could be working on a small team one day and leading a major campaign the next. So, just knowing someone’s job title doesn’t give us the full picture of what they can do or how much experience they have.

Inconsistent Responsibilities Across Organizations

Also, job titles can mean different things at different companies. For instance, a "Software Engineer" at a small startup may handle coding, testing, and customer support. But at a large company, they may just focus on writing code. This causes confusion and misunderstandings when hiring based on titles alone.

Job titles can give us a basic idea of a person’s job, but they don’t always tell us everything a person can do or all the things of which they’re in charge. This shows us that we need a better way to think about hiring and jobs.

The Limitations of Qualifications?

Qualifications like degrees and certifications are often used to judge a person’s knowledge and skills. But they don’t always show how well a person can do a job. Someone could have a computer science degree but struggle with certain programming languages or methodologies. Qualifications give a basic understanding, but they don’t promise that a person can do well or adapt when job needs change.

The Growing Recognition of Skills and Experience

In recent years, more industries emphasize skills and experience over formal education. Leading technology firms like Google and Apple no longer require college degrees. They focus on the practical abilities people bring to the role. This demonstrates that real-world experience and learning potential are just as important as formal schooling.

While qualifications are a key part of a person’s profile, they aren’t everything. A better way to look at hiring is to consider a person’s skills, experience, and ability to grow. This can lead to better hiring decisions. This is what the capabilities-based approach to jobs is all about.

The Capabilities-Based Approach?

The capabilities-based approach is a big change in how we think about jobs and hiring. This new approach examines a person's true abilities, potential, and value-add for an organization. It looks beyond surface qualifications to find hidden strengths. It’s about a person’s abilities, their potential, and how the value they can add to an organization. This creates more diverse, dynamic teams that encourage innovation.

Focusing on Individual Capabilities?

In the capabilities-based approach, it’s all about what a person can do, not what their job title is or what degrees they have. For instance, someone could successfully analyze data without a formal "Data Analyst" title or data science degree. They may have keen attention to detail, logical thinking, and software skills.

This approach acknowledges that people gain skills through various channels - formal education, self-teaching, hands-on experience, and even hobbies. It values each person's unique blend of capabilities. This provides opportunities for talent from all backgrounds.

The capabilities-based approach to jobs offers a more open and complete way to look at potential candidates. It lets employers see more than what’s on the surface and find the hidden potential in each person. This not only leads to better choices when hiring, but also helps create a workforce that’s more diverse and full of new ideas.

Implementing the Change

Transitioning to a capabilities-based approach requires a shift in mindset and a reevaluation of existing hiring practices. Here are some ways businesses can implement this change:

Redefining Job Descriptions

Shifting to capabilities focus requires changing mindsets and processes. Some key steps:

• Revise job descriptions to focus on required skills rather than specific credentials.
• HR and management must advocate for this approach throughout the company.
• Invest in tools to better evaluate candidate abilities.

The Role of HR and Management

The Human Resources (HR) team and management are important for this change. They need to support the benefits of the capabilities-based approach and make sure it's used all over the company. This could imply that hiring managers should concentrate on a person’s abilities and potential for the future, rather than solely on their previous job titles or qualifications. It could also mean using tools and technologies that can better assess a person's abilities.

Here are some ways HR and management can support this approach:

• They can share the goals of the capabilities-based approach with everyone. They can explain why this approach is better for the company and the people, and how it fits with the company's values and mission.
• They can give training to hiring managers and recruiters on how to use the capabilities-based approach. They can show them how to write job ads that focus on skills, how to use tools to figure out what a candidate can do, and how to have interviews that find out a candidate's potential strengths.
• They can create a learning culture that supports the capabilities-based approach. They can provide opportunities for employees to pick up new skills, apply their abilities in various projects or positions, and receive praise and acknowledgement for their talents.
• They can measure and report the results of the capabilities-based approach. They can keep track of and share the data and stories that show how this approach improves diversity, employee satisfaction, and business performance.

Using a job approach based on capabilities means we need to change our thinking about hiring and be more welcoming to potential candidates. It's not a change that happens quickly, but with hard work and careful planning, businesses can move towards this better model.

Benefits for Job Seekers

This approach gives job seekers a chance to show off their unique skills and experiences. They’re not stuck with traditional job titles or qualifications. This can lead to chances in areas they might not have thought about before. For instance, someone who’s good at analyzing and solving problems could be right for jobs in data analysis or strategic planning, even if they’ve never worked in these areas.

This approach also helps job seekers find their own potential and areas in which they can grow. By focusing on what they can do, they can understand their strengths and weaknesses better. Then, they can look for chances that let them use their strengths and address their weaknesses.

Benefits for Businesses

For businesses, the capabilities-based approach can make hiring decisions more effective. By focusing on a candidate’s abilities, not just their past, businesses can find candidates who are the best match for the role and the company. This can boost employee performance and productivity.

Also, this approach can help businesses create more diverse and dynamic teams. By looking past job titles and qualifications, businesses can attract candidates from a wider variety of backgrounds and experiences. This encourages different ways of thinking and sparks innovation.

A capabilities-based approach to employment and hiring brings big benefits for both job seekers and businesses. It’s a more inclusive, fair, and effective way to pair people with jobs that really suit their abilities.

How AI Can Help

Artificial intelligence (AI) can be a strong assistant for a capabilities-focused way of hiring and getting hired. AI can help businesses and job seekers in several ways, such as:

• Assessing capabilities: AI can use data and algorithms to measure a person’s skills, abilities, and potential. For example, AI can analyze a person’s resume, work samples, or online profiles to identify their capabilities. AI can also create tests or simulations to evaluate a person’s performance in various tasks or scenarios.
• Matching capabilities: AI can use data and algorithms to match a person’s capabilities with the best job opportunities. For example, AI can compare a person’s skills and interests with the requirements and preferences of different roles or companies. AI can also suggest learning paths or career options that suit a person’s capabilities and goals.
• Improving Skills: AI can help you get better at what you do. It uses information and calculations to guide your growth. For instance, AI can give you custom advice, training, or support to help you pick up new skills or tackle tough problems. Plus, AI can point you to classes, materials, or chances to help you move forward in your career.

AI can help businesses and job seekers adopt a capabilities-based approach to employment and hiring. With AI’s help in evaluating, pairing, and enhancing skills, companies can discover the perfect people for their needs. At the same time, job seekers can find the most suitable jobs that match their skills. This can lead to more diverse, productive, and satisfied teams.

Case Studies

Some companies and local governments have used a capabilities-based approach and have seen good results. Here are some examples:

McKinsey’s Employer Accelerator Program

McKinsey and the Rework America Alliance started the Employer Accelerator program. It focuses on hiring people based on their skills. Big companies like Boeing, Walmart, and IBM joined this program. They stopped asking for degrees for some jobs and helped workers move up to better jobs. This approach helped these companies get more and better applicants and keep them longer.

Salesforce, Hilti, and Thermo Fisher

These companies built bionic capabilities to serve their customers better. They used demand centers to do this. By focusing on capabilities, not qualifications or titles, they improved their customer service and got better business results.

Maryland State Government

In May 2022, Maryland said it would not ask for degrees for almost half of its jobs. This opened thousands of jobs in healthcare, corrections, policing, trades, and engineering to more people. As a result, they got more diversity in their workforce.

These case studies show that a capabilities-based approach can lead to more diversity, happier employees, and better business results. It’s a strong proof of the benefits of this approach.

Conclusion

The world of work is changing. A capabilities-based approach to employment is a powerful tool that can help both job seekers and employers. It allows us to look beyond job titles and qualifications and focus on the skills and potential of individuals. This approach can lead to more opportunities, diversity, and innovation in the workplace.

But change doesn’t happen overnight. It requires awareness, understanding, and action. So, let’s start the conversation. Let’s challenge the status quo and explore new ways of thinking about jobs and hiring. Let’s share our experiences and learn from each other. And let’s work together to create a more inclusive and fair future for all.

Have an opinion or feedback on a capabilities-based approach? Please share your thoughts below and join in on the conversation.

References

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9. Business Insider. (2021, May 18). Maryland hires workers without degrees to curb labor shortage. https://www.businessinsider.com/maryland-hires-workers-without-degrees-to-curb-labor-shortage-2021-5
10. CBS Baltimore. (2021, May 17). Thousands of state jobs no longer require a college degree under Maryland initiative. https://baltimore.cbslocal.com/2021/05/17/thousands-of-state-jobs-no-longer-require-a-college-degree-under-maryland-initiative/
11. WBAL TV 11 News. (2021, May 17). Hogan eliminates degree requirement for some Maryland state jobs. https://www.wbaltv.com/article/hogan-eliminates-degree-requirement-for-some-maryland-state-jobs/36440493
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Disclaimer:?Joe Blaty (he/him/his) is an innovation leader with a passion for driving disruptive change, a storyteller, a trusted advisor, a futurist, and a Diversity, Equity, Inclusion, and Belonging advocate. The views and opinions expressed in this article are solely of Mr. Blaty and are not representative or reflective of any individual employer or corporation.