Skills-First Hiring: The Future of Talent Acquisition and Workforce Diversity
How Skills-Focused Hiring Could Reshape the UK Labour Market
As the UK navigates a sluggish economy, businesses are increasingly turning to artificial intelligence (AI) and workforce upskilling to bridge labour gaps. However, new research from LinkedIn’s Economic Graph team suggests another powerful solution: skills-based hiring. By prioritizing candidates’ abilities over job titles, employers could broaden the UK talent pool by more than eight times, unlocking opportunities across sectors facing shortages.
Expanding Opportunities Beyond Traditional Paths
A skills-first hiring approach has the potential to diversify the workforce, particularly in underrepresented demographics such as women, non-traditional learners, and workers across different age groups. In the technology sector, for instance, skills-based hiring could increase the pool of women in AI roles by 12.6 times and of men by 11 times. These figures highlight the untapped potential of a broader, more inclusive hiring strategy.
Future-Proofing the AI and Tech Workforce
Artificial intelligence continues to be a major investment focus in the UK, with a record-breaking year for AI startups and government-backed initiatives to grow the sector. Yet, AI remains largely male-dominated, with women making up just 22% of the workforce, according to the Alan Turing Institute. Skills-focused hiring could improve female representation in AI by 8% and in the broader tech sector by 3%, moving closer to a 40% female workforce in technology.
Leaders like Dr. Julia Stamm, founder of She Shapes AI, emphasize the importance of diverse perspectives in AI development, not just from software engineers but also professionals from industries such as healthcare, marketing, and humanitarian work. Her She Shapes AI awards spotlight women driving AI innovation, showcasing the impact of a diverse and skills-based workforce.
Tackling Labour Shortages in Key Industries
Beyond technology, sectors like construction are also poised to benefit from skills-first hiring. With an ageing workforce and persistent labour shortages, the construction industry could expand its talent pool by more than eight times, including a 9.4-fold increase for women. Roles such as construction project management could see a dramatic surge in qualified candidates, growing by over 300 times among women and 110 times among men.
Similarly, financial services, information and media, and green jobs stand to gain from this approach, as employers shift their focus to candidates with transferable skills rather than direct experience in a given role.
The Shift to a Skills-Based Hiring Model
The research underscores the need for a paradigm shift in hiring practices. Employers must look beyond traditional career trajectories and embrace a skills-first approach to widen talent pipelines and foster greater workforce diversity. At the same time, job seekers can position themselves more effectively by highlighting their skill sets rather than relying solely on job titles.
Read the full article here: How Skills-Focused Hiring Could Change the Shape of the Labour Market
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