The Employer Brand Insider Issue #2

Skills-based hiring can help create a more efficient labour marketplace

I spent the last week visiting Toronto, and I am grateful to everyone I have connected with, some are fellow first-generation immigrants like myself. All embarking on their beautiful, often challenging journey of life in a new (and cold) place. (Yes, I’m typing this in my hotel room in Montréal with the heater turned up high, with a shawl around my shoulders and wishing there was a fireplace.)

Their stories echo my own experiences, and it's a profound reminder of the strength and resilience that binds us together. From living out of our suitcases, to the uncertainty of a new beginning. Many facing uphill challenges in getting a job befitting their experience and skillsets. The announcement to ban Canadian work experience requirement in hiring within Ontario is a great first step towards hiring for skills and abilities. This has been an ongoing discussion even at many organizations who are hiring based on a candidate’s industry and function, instead of hiring based on skills.

Hiring for skills at the workplace is a strategic approach that not only addresses the immediate needs of the organization but also contributes to workforce reallocation and upskilling in the long term. Moving to a skills-based approach can help create a more efficient marketplace of talent.

1. Adapting to evolving roles and skills-based reallocation of resources: The job market is dynamic, and roles within organizations are constantly evolving. Functions and roles which can be automated are at high risk of being replaced. (See chart below by World Economic Forum.) In the future, companies should be hiring from within, through a skills and ability database. That way, resource can be re-allocated more effectively and efficiently across the organization. Thereby also saving costs to hire and opportunity cost from reducing the time-to-fill time-to-train.

2. Make learning part of your culture by walking the talk: Hiring for skills and promoting internal mobility, sends a strong message to employees that continuous learning and skill development are valued within the organization. Learning and development opportunities in addition to career growth are both attributes which attract and retain employees, among other culture and management attributes. By encouraging multiple career paths within the company, employees are able to control and seek out their personal and career journeys within the company thus reducing regrettable turnover.

3. Identifying transferable skills: This is important as it allows for cross-pollination of ideas and perspectives between departments. One useful immediate area is looking at hiring talent in consumer experience for candidate experience. The future of work should be a marketplace of agile talent with transferable skills. Employees often possess skills that are transferable across different roles and departments. When hiring managers focus on these transferable skills, they can identify individuals who have the potential to excel in a variety of positions. This approach makes it easier to reallocate talent within the organization, optimizing the use of existing skills and minimizing the need for external hires.

4. Closing skill gaps internally: Rather than always seeking external candidates to fill skill gaps, organizations can prioritize internal talent development. This involves identifying skill gaps within the current workforce and implementing targeted upskilling and training programs. This not only enhances employee satisfaction but also ensures that the organization is leveraging the full potential of its existing talent pool.

5. Reducing recruitment costs: Hiring for skills can be a cost-effective strategy. Instead of solely relying on external hires, organizations can invest in training and upskilling existing employees, which can be more economical than recruiting externally. This approach not only saves costs associated with recruitment but also fosters employee loyalty and engagement.

In summary, a skills-focused approach to hiring contributes to workforce agility, internal mobility, employee engagement, and a culture of continuous learning. It allows organizations to adapt to evolving demands, close skill gaps internally, and build a more resilient workforce. That said, I understand that implementing something new in an organization is easier said than done.

As we navigate the future of work, there are many macro and micro factors. This is an ongoing conversation and I would love to hear your thoughts. How can organizations further enhance their skills-based strategies? What are some considerations when implementing a skills-based approach? Are there tools or platforms which your organization currently uses? How does it [the tool] differ from others in the market?

Where the heck is Issue #1?

Some news in the world of work:

• Pay transparency is spreading across Canada, but no enforcement except for Newfoundland and Labrador
• A hard hit for journalism with fake authors
• Tech layoffs may have peaked but still happening, despite some hiring with the same companies
• Which jobs will be most impacted by AI?

Why subscribe to TEBI?

In today's fast-paced job market with discerning candidates, multigenerational workforces and converging consumer and candidate expectations, employer branding is essential. I believe that it is not just about attracting top talent but about building a culture where employees thrive. In subsequent issues, I will be introducing some guest interviews, best practices in Canada and beyond, DEI and the likes, events, success stories (and some not-so-successful stories), shoutouts to great managers and the occasional research insights. Reach out to me should you have other topics you wish to learn more about. ??????If you prefer to read this on Substack, sign up here: The Employer Brand Insider | Substack

Quick introduction about me

Based in the beautiful city of Vancouver, Canada currently having moved from Singapore and Ottawa, Canada. My passion lies in helping companies create people-focused talent marketing solutions, and fostering engaging workplaces. Outside of work, I enjoy hiking, watching TV, reading, jig saw puzzles and I have been thinking about getting into rowing, despite my fear of the ocean.