Exploring the Connection between Labor Day and Skills-First Hiring

Happy Labor Day from OneTen! Today, we're celebrating the dedication of workers across the nation, both past and present—and the essential role labor plays in shaping our communities and economy. This day aligns with our dedication to transforming hiring practices through a focus on skills over degrees. By prioritizing skills over traditional credentials, we are closing opportunity gaps, fostering upward mobility, and improving employee retention across the board.??

Did you know that nearly 65% of adults in the United States—and 76% of Black individuals aged 25 and above—are excluded from jobs simply because they lack a four-year degree? It’s time to rethink how we approach hiring. Instead of focusing on degree requirements, let’s shift our attention to a candidate’s ability to excel in their role.??

But don’t just take our word for it! According to Korn Ferry, a global organizational consulting firm, the demand for skilled workers will outpace supply by 2030, leading to a talent shortage that could cost U.S. companies $1.748 trillion in missed revenue.?

The solution? It’s straightforward—hire for skills, not degrees.??

When companies embrace skills-first hiring, they see a rise in employee engagement. Deloitte reports that employee engagement increases by 30% when workers have access to on-the-job development, lateral moves, and stretch assignments. Highly engaged teams are 21% more productive, leading to better retention, increased innovation, higher productivity, and a stronger brand.?

Companies that have adopted the skills-first approach are already reaping the benefits. For example, Uber invested in a robust skills development program, closing skills gaps and creating pathways for internal mobility. Today, 30-40% of Uber’s annual hires come from within the organization.?

These innovations in hiring practices are not just limited to leading firms in technology and healthcare, organizations across all sectors are beginning to see the value of skilled talent.?For example, Delta has removed four-year degree requirements and re-credentialed more than 90% of the company’s non-executive job openings. Furthermore, more and more companies are now laying the groundwork to create pathways to sustainable careers, through avenues such as apprenticeship programs and upskilling opportunities. Since 2021, when?Cleveland Clinic first worked to identify and strengthen connections with local talent developers to pave the way for its inaugural pharmacy apprenticeship program, it has since launched additional programs in areas such as IT, moving hundreds of apprentices up the corporate ladder, so to speak. ?

And these are just a few of the many examples of how employers are finding new and innovative ways to advance all talent, not just some. So, as we celebrate Labor Day, we also invite companies across the country to join us as we close the opportunity gap, one skilled hire at a time!?