Moving from Jobs to Skills and Development: Reskilling Workers for the Future

As the business landscape continues to evolve rapidly, organisations are recognising the need to adapt their workforce strategies. One of the most significant shifts in recent years has been moving from traditional job-focused recruitment to a more dynamic approach centered on skills and development. This approach prioritises competencies over formal qualifications, ensuring that businesses remain competitive in an era of constant technological and market change. This article, part of CXC's 2024 Contingent Workforce Salary Benchmark Report , explores how Australian businesses are leading the charge with skills and development initiatives, and the critical role reskilling plays in workforce management today.

Skills-Based Hiring is on the Rise

Australian businesses are increasingly adopting skills-based hiring as a strategic approach to respond to today’s ever-evolving business landscape, moving away from the traditional hiring practices centred around educational qualifications and job titles to prioritising critical competencies such as skills and development experiences. In fact, a recent report from TestGorilla reveals that 9 in 10 employers in Australia are using skills and development-focused hiring in 2024, leading the rest of the world in adopting this recruitment method.

This shift towards a more skill-centric recruitment practice is largely influenced by the desire for a more inclusive and diverse workforce, along with the demand to quickly adapt to rapid technological advancements. These factors compel organisations to rethink their hiring strategies to remain agile and competitive in a dynamic job market. Through our contingent workforce data, we look at this shift by seeing how contingent workers are prioritising skills development and how recruitment and hiring managers are responding to the changing demands of the job market.

The Growing Emphasis on Skills and Development

As industries undergo rapid digital transformation, there is a growing emphasis on candidates with transferable skills that can support innovation and growth, particularly in sectors such as IT, healthcare, and finance. Job roles that require specific technical skills or competencies—such as software developers, data scientists, digital marketers, and cybersecurity analysts—are particularly suited for skills-based hiring. These roles require a well-defined set of skills and development proficiencies that can be objectively assessed and matched to job requirements, making this approach effective for identifying top talent in these fields.

Among the benefits of skills-based hiring is the expanded talent pool. LinkedIn research reveals that employers who adopt this approach can increase their access to potential candidates by up to 20 times. Notable companies like Canva, Culture Amp, and WiseTech Global have seen improvements in workforce diversity and innovation by eliminating degree requirements from many roles, focusing instead on skills and development.

Canva, for instance, dropped degree requirements in 2020 to enhance team diversity, emphasising skills and development over educational backgrounds. Similarly, Culture Amp removed degree prerequisites six years ago, assessing candidates based on their specific skills and development relevant to job performance rather than academic qualifications. This change has not only diversified their workforce but also enhanced their ability to recruit individuals with varied perspectives and problem-solving approaches.

The shift from jobs to skills and development becomes more evident as workers recognise the importance of skills development to enhance employability. According to our latest survey , more than half of contingent workers have gained skills and development that not only enhance opportunities with their current client but also open doors with other clients in the future. This suggests that a majority of workers are broadening their skillset to enhance their career prospects both for their current and future engagements.

Additionally, around 20% of the respondents believe that the skills and development they acquired will benefit them with other clients, showcasing the increasing importance of fostering a workforce capable of thriving across multiple engagements.

Skills development

Reinvention of Job Titles to Reflect Skills and Development

There is also a growing trend toward the creation of new job titles to adapt to the changing times, particularly in the human resources and tech fields. Organisations, for example, are increasingly embracing trendy job titles such as Chief People Officer and Chief Remote Officer to respond to the evolving roles and responsibilities within the modern workforce. Through our data , we have also noticed the splintering or diversification of job titles, highlighting the increasingly specific skills and development required to perform these roles.

Unique job titles 2022 v 2023

This practice may stem from the need to accurately capture the multifaceted tasks and specialised skills and development that individuals bring to their roles, emphasising the unique value that workers contribute. However, organisations should ensure alignment of these roles with industry standards and established methods for assessing candidates' evolving skill sets.

Practical Steps for Adopting a Skills-Based Approach

For businesses looking to implement a skills and development-focused hiring strategy, several practical steps can be taken:

• Craft skills-centric job descriptions: Emphasise the specific skills and development experiences required for success in the role, moving beyond educational credentials and job titles.
• Use skill assessment tools: Evaluate candidates using practical exercises, technical evaluations, and case studies to gauge their skills and development proficiency.
• Talent pipelining and internal mobility: Establish a talent pipeline by identifying individuals with necessary skills and development both inside and outside the organisation. Prioritise internal mobility and upskilling/reskilling programs to foster a culture of continuous learning.

The shift from job titles to skills and development is not just a trend but a vital evolution in how organisations approach recruitment and workforce management. As the demand for new capabilities grows in response to technological advancements, businesses that prioritise skills and development will be best positioned to succeed. By focusing on competencies, Australian companies are paving the way for a more inclusive, innovative, and agile workforce. This content, drawn from CXC's 2024 Contingent Workforce Salary Benchmark Report , underscores the importance of investing in skills and development to remain competitive in the future of work.

Unlock the Insights You Need to Stay Ahead

Stay informed and competitive in the rapidly changing workforce landscape. CXC's 2024 Contingent Workforce Salary Benchmark Report provides critical insights into trends, skills, and salary expectations that will shape the future of work. Discover how leading businesses are adapting their hiring strategies to focus on skills and development and gain valuable data to drive your workforce decisions.

Download the report today to ensure your business is prepared for what's next in contingent workforce management!