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IT Careers: Does Skills-Based Hiring Really Work?

More organizations are moving toward skills-based hiring and getting mixed results. Here’s how to avoid some of the pitfalls.

Skills-based hiring can be a blessing or a curse, depending on how it's implemented. Before the pandemic, the speed of business was already accelerating continuously. The pandemic followed, forcing companies to become an extreme form of agile. Both those trends remain true today.

So why skills-based hiring? It makes the organization more agile and resilient, and it provides employees with greater opportunities for growth.

"The traditional way of working isn't flexible or responsive enough for the many rapid changes we're experiencing," says Janice Burns, chief transformation officer at learning and upskilling platform provider Degreed. "With skills-based hiring, all you need to do is break your job descriptions down into the tasks that need to be done and then look at the skills [required] for those tasks. ... If it's done as a silo, then it won't offer all the benefits that skills-based organizations can bring."

According to a Deloitte report, organizations embracing skills-based hiring are:

  • 52% more likely to be innovative,
  • 57% more likely to be agile,
  • 107% more likely to place talent effectively, and
  • 98% more likely to retain high performers and have a reputation as a great place to grow and develop.

"As automation and artificial intelligence reshape the workforce, the specific skills required for success are constantly changing," says Vit Koval, global hiring and remote work advocate at B2B ecommerce platform provider Globy in an email interview. "To maximize the benefits of skills-based hiring, companies should foster an environment that encourages continuous learning and skill development. This approach ensures that employees remain relevant and can grow alongside the business, addressing both current and future needs."

Skills-Based Hiring Helps Level the Playing Field

In traditional hiring, one looks for degrees as evidence of expertise. Particularly in IT, technology is changing so quickly that one must mindfully inventory skills and fill the gaps on a continuous basis. It's a process, not a destination.

Read the rest of this article on InformationWeek.

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