Is it time to move to skill-based hiring?

Introduction

In January 2019, Amazon announced that it would no longer require job candidates to have a university degree, citing research which showed that “There are more cases where degrees are not related to success in the job at hand.” This move is part of a trend towards skill-based hiring, which seeks to measure the abilities of potential employees rather than relying on their educational background or academic qualifications alone.

A degree is a foot in the door and proves a set of competencies including networking that determine job and cultural fitness. Skills, on the other hand, prove the fact that one has the ability to meet goals and get the job done.

If you have a degree, you're in. If not, well...you're not. Or are you?

We've all seen the headlines: “Skills over degrees” and “Degrees are dead: what's next for talent management?” These stories echo a growing sentiment that skills should be weighted more heavily than academic credentials in hiring decisions because they're more relevant to the job and organization. But is this really true? And if so, how can we measure skills effectively at scale?

The technology sector is the most apparent example of this trend with companies focussing on up-skilling their existing workforce rather than recruiting

The technology sector is the most apparent example of this trend with companies focussing on up-skilling their existing workforce rather than recruiting. It's a continuous process. Up-skilling isn't just about training people on the skills required for new roles, but also developing soft skills such as communication, problem solving, and teamwork. These are important elements that can make or break an employee’s performance during their first few months in a role at a company.

The idea behind skill-based hiring is that it helps ensure you're bringing onboard employees who have the right mix of skills to succeed in their new positions

According to a report from IIM Bangalore titled ‘Skill Development Schemes in India’ published by UNIDO, a significant proportion of these young people are lacking the required skills for employment or self-employment in a market economy – over 80 per cent of those who respond that they have participated in formal vocational training programmes say they improved their employability.

While the report also notes that while there are skills shortages in many IT roles, it is more common in some more specialised areas such as cybersecurity.

Other stats from the report include:

• Only 20% of employers believe they have enough IT talent to meet their needs today.
• Close to 60% believe they will not be able to meet their future IT talent needs without recruiting outside the country.

More businesses are focussing on skills development rather than having educational degree as a prerequisite for hiring

So, what does this mean for you?

If you’re a worker who has already been through the rigors of university education and landed a job, your skills might be on par with those of your peers. But if you’re still in the process of acquiring formal qualifications and don’t have much work experience under your belt yet—or even if you do—it may be time to think about how best to build up your skill set.

The first place to start is by thinking about what kind of work environment would most suit your personality and interests. Do you want to learn something new every day and constantly challenge yourself? Or would it be more comfortable working at an established company where everything is familiar and predictable? Do you thrive under pressure or need long stretches without interruptions so that nothing interferes with getting things done? By considering these questions before committing to any school or training program, it will help ensure that whatever path(s) forward are chosen are truly right for their needs as well as those around them at all times throughout life's journey from cradle onwards until death occurs later on down road when hopefully everyone gets along better than ever before due back someone's bad decisions made years earlier (if not all along).

Conclusion

We have seen that this trend has been prevalent in the tech sector, with companies focussing on up-skilling their existing workforce rather than recruiting. With the rise of automation and artificial intelligence, it is likely that this trend will continue to grow as companies move towards hiring people with skills rather than degrees. It is important to note that this does not mean that you should drop out of college immediately; instead, focus on developing your skillset and work experience before applying for a job at a company who cares more about what you can do rather than where you went to school!