What is skills-based hiring? Why is it on the rise, and what are the best practices for adopting it in your organization? Here’s everything you need to know about this revolutionary new approach to recruitment.
New for October 2023: The world's only report on the State of Skills-Based Hiring. Out now!
Our data shows extraordinary outcomes for employers and candidates
of employers say skills-based hiring reduces mis-hires
of companies report a reduction in total cost-of-hire
of employees say skills-based hiring can help them land their dream job
of skills-based hires are happy in their role
Recruitment is changing fast. Over the past year we’ve seen the red-hot candidate market give way to recessionary fears, and the rise of AI-based tools that promise a brand-new world of work. As businesses reshape their workforces to deal with these challenges, skills-based hiring has emerged as the preferred tool to find and secure talent.
In the world's only annual report on skills-based hiring, we deep dive into the revolutionary recruitment trend to find out how employers are leveraging this approach, how it’s affecting candidate experience in the current job market, and what the adoption of skills-based hiring practices means for diversity efforts across organizations.
Looking to make faster, more accurate, and higher quality recruitment decisions? At a time when great talent comes at a significant premium employers are realizing that they need tools to assess candidates’ skills more quickly and reliably. Enter skills-based hiring. Read on to find out how this new approach to recruitment is driving managers to ditch resumes and expand their applicant pools.
Skills-based hiring is a hiring process where evidence of candidates’ skills, rather than other information such as their prior experience or where they were educated, is used to make hiring decisions. As such, employers set specific skill requirements and then measure for these skills. We’re all about skills-based hiring at TestGorilla, and the rest of the world is finally catching up. Skills-based hiring has had lots of press of late, with big names such as Forbes, Harvard Business Review, CNBC, the BBC, and McKinsey & Company publishing content on the topic. But what’s the long answer about skills-based hiring? How does it work? And why does it work so well? In this article, we’ll dive into the simple questions (which can have surprisingly nuanced answers) to help you understand the basics of skills-based hiring.
In case you didn't know yet, skills-based hiring is on the rise. In this article, we’ll use data we collected from 3,000 employers and employees to discuss the rise of skills-based hiring, describe what it means for recruitment, and explain how a skills-based approach can help you make the most of your hiring budget.
Job candidates are putting their desires front and center when searching for a new job in 2023. In the aftermath of the Covid-19 pandemic and the Great Resignation, keeping track of what job candidates want out of their employer and career is crucial for attracting and retaining talent. Gone are the days when candidates would bend over backward to fill out job applications, endlessly tweak their resumes, and sit through round after round of interviews. Candidates want a speedy hiring process, remote work opportunities, learning and development, and fair pay. The good news? Employers who make these accommodations aren’t taking a hit. They’re building stronger organizations. Skills-based hiring offers significant business benefits to employers and helps them stay ahead of the competition regarding candidates’ desires. This guide explains what candidates have wanted, no longer want, and will want in the future from their employers, and it gives you insight into how skills-based hiring helps employers deliver on these wants.
One of the most controversial calls to action of skills-based hiring is for employers to ditch the typical requirement for a university degree and tear the paper ceiling. Four-year degree requirements have been around for what feels like forever, but they’re not a good predictor of job success. An analysis of 26 million job postings found that college graduates had lower levels of engagement at work and a higher rate of turnover. Even highly technical skills like data science don’t necessarily require a university degree to learn them. Instead, more and more organizations are turning to skills tests to identify candidates who are qualified regardless of their educational background. Our own State of Skills Based Hiring 2022 report found that 76% of companies are already reaping the benefits of skills-based hiring, with 89.8% seeing a decrease in cost-to-hire, 91.4% seeing a decrease in time-to-hire, and 92.5% seeing a reduction in mis-hires. This is part of an overall shift known as the “degree reset.” But what role does skills-based hiring really have in this reset, and where do universities go from here? In this blog, we discuss the role that universities have played in hiring up until now and how we see that changing in the coming decades.
Career progression is, understandably, front-of-mind for employees when evaluating whether to stay with their current employer or search elsewhere. In 2022, more than a third of workers said that they planned to ask for a raise in the coming year. Many workers are not afraid to take drastic actions if their raise is withheld or unsatisfactory. There’s a common belief among workforces that when it comes to career progression, “the only way up is out.” If employees want to ascend to a position that utilizes their leadership skills, they expect to have better luck finding one outside of their organization than inside it. This attitude persists because many employers are of a similar opinion. Losing talented employees because they weren’t offered opportunities to progress is viewed as inevitable, with glass-half-full employers seeing it as an opportunity to take on a fresh new hire. To some, overly ambitious employees may be seen as “disruptive” to the business’s operations. Therefore, letting that talent go would be considered beneficial in the long run. However, this blasé attitude to employee retention and internal mobility isn’t sustainable. It comes at a cost to your business and could be hindering your growth. In this blog, we look at the state of employee retention in 2023 and how skills-based hiring can help transform this “only way up is out” attitude among both employers and employees.
We know how this headline sounds, but no, this blog post isn’t about helping Dua Lipa start a new career as a warehouse supervisor. The term “STAR” actually stands for “Skilled Through Alternative Routes” and refers to workers who have gained valuable skills outside the now-expected path of a college education. STARs make up 50% of the American workforce, and yet the traditional hiring techniques used by many employers – including resume review and degree requirements – exclude them from roles where they can demonstrate their value. In this blog, we show how opening your recruiting process to STARs with skills-based hiring not only improves their careers, but helps you create more diverse, innovative, and not to mention happier teams. Most importantly, we discuss how skills-based hiring can help tear the paper ceiling.
Our data shows that 76% of employers are ready to make the switch to skills-based hiring. Find out why skills-based hiring is on the rise and the wide-ranging benefits it can bring to your business.
We’ve been carefully building a team since TestGorilla launched over two years ago, and today we hired our 100th team member. We practice what we preach, so every one of our people has been recruited for their skills, using our product. And based on their experiences, we know that skills-based hiring has the power to change lives. In order to share some of that power, we asked 10 team members to talk about their careers before TestGorilla, and their experiences with both CV-based and skills-based hiring. Read on to discover 10 stories that demonstrate why companies need to adopt skills-based hiring.
Skills-based hiring requires hiring managers to break from traditional recruitment practices and adopt a new mindset. But as well as being a fairer way to identify and reward the right candidates – and spot the warning signs of a bad hire – it brings tangible business benefits to your organization. Through accurate insights into how well a candidate’s skills match a particular role, employers can reduce hiring costs and build a more engaged and productive team. In this article, we’ll explore the business benefits of employing people based on their ability with key findings from our State of Skills-Based Hiring report – and look at how companies can move to this model.
Hiring costs add up very quickly if an efficient process is not in place. Traditional hiring methods are bogged down with direct costs, like recruiter fees and the cost of resume screening software, in addition to several other indirect costs that lead to delays in time-to-hire, such as unstructured interviews and candidate ghosting. These practices not only waste time, but they’re also not accurate predictors of a candidate’s future performance. They end up costing even more in the long run when employers have to rehire for the position. Skills-based hiring cuts these costs down to the bare minimum, helping employers to identify top candidates without paying a small fortune in recruitment fees. Our 2023 State of Skills-Based Hiring report found that 74% of employers using skills-based hiring reduce their total cost-to-hire. Read on to learn about reducing hiring costs with skills-based hiring.
When employees feel like they belong at work and are an integral part of a close-knit team, the results are far-reaching: Their job performance increases by 56%, their turnover reduces by 50%, and they take 75% fewer sick days. Belonging is also cited as a leading driver of employee engagement, and 91% of employees who feel they belong are engaged at work as opposed to 20% of those who don’t. However, creating a culture of belonging at work involves more than offering a friendly welcome to new team members. It’s about building a diverse team and ensuring that everyone is treated equally and feels included. Objective and data-backed recruitment practices like skills-based hiring help you do that by helping you hire for skills and ability, not subjective factors like background, union membership, or connections to existing staff. In this article, we’ll examine how skills-based hiring helps companies increase diversity and improve employee happiness and retention. We’ll also look at how to use a skills-based approach to identify and develop the soft skills necessary for creating an inclusive and welcoming work culture, as well as provide practical tips for building a culture of belonging.
The working world has been turned on its head with the pandemic, the Great Reshuffle, and the resulting skills shortage. Companies are searching for a powerful, sustainable way to recruit and retain talent, and 73% of them are now opting for skills-based hiring practices. Skills-based recruitment practices are for everyone. Don’t believe us? We've put together 10 recruiting case studies that demonstrate how different individuals, industries, and regions have successfully implemented skills-based hiring.
It's safe to say that traditional hiring methods aren't saving time for anyone. Job seekers spend hours tweaking resumes, whilst recruiters spend their days sifting through them without gathering any relevant information about what a candidate’s actual skills are. Skills-based hiring, however, cuts right to the chase. Assessing and hiring for a candidate’s skills by using multi-measure assessments is a proven way to hire faster – in fact, 82% of employers using skills-based hiring told us it reduced their time-to-hire. Read on to find out how to hire faster with skills-based hiring.
Skills-based hiring has quickly become a global trend helping reshape recruitment practices across many regions and industries. From the United States to Singapore, recruiters are embracing skills-based hiring to attract and keep top global talent. Reasons for its popularity differ across regions. Some use it to streamline high-volume hiring, while others are using it build fairer, more diverse teams. Read on to find out who is using skills-based hiring and how they will benefit.
If you aren’t doing it yet, that’s ok: 58% of companies we surveyed only just adopted skills-based hiring in the past two years. But from the United States to Singapore, a skills-based approach is quickly becoming a popular way for recruiters to attract and retain global talent. The reasons for using skills-based hiring vary from region to region. In some parts of the world, organizations use it to streamline high-volume hiring. While in others, the focus is on making teams more diverse and equitable. Let’s take a closer look at how skills-based hiring works in the USA, UK, and the Asia-Pacific region. We’ll compare the reasons for implementing the practice—and the results of doing so. We’ll also highlight what these examples can teach us about creating a more diverse and higher-performing workforce.
States across the US are implementing a skills-based approach to hiring and rewriting the rules to traditional hiring practices. Instead of evaluating candidates on their education and background, they’re going in search of diverse talent who have the skills needed for the job. This opens up opportunities to people who might miss out because they’ve been skilled through alternative routes (STARs) or don’t have a degree. However, not all states are created equal in their approaches to hiring and progress. In this piece, we look at five states leading the way in skills-based hiring and what you can learn from them to attract the best talent for your own business.
The global skills shortage is ongoing. Many skilled workers are being turned away by employers because of a lack of formal education or experience on their resumes. Many employers are not offering workers learning and development opportunities even though 45% of workers say they would stay at their company longer if it invested in their growth. Skills-based hiring is a proven strategy to locate, retain, and develop skilled workers. In fact, our report, the State of Skills-Based Hiring 2022, found that more than three-quarters of employers globally are using skills-based hiring to identify talent. But do Asian-Pacific (APAC) countries, where the bulk of the world’s working population lives, fit into this? This article dives into the current skills-based hiring situation in prominent APAC countries to identify how companies are adapting, the role that governments play, and the cultural and social factors that are driving (or preventing) the benefits of skills-based hiring. Finally, we’ll take a look at how skills-based hiring can fill the gaps that the majority of APAC economies are experiencing and the lessons the rest of the world can learn. Before we begin, “APAC” can be an ambiguous term, so in this article, we’ll use it to refer to East and Southeast Asian countries as well as Oceania.
Employers are finding it increasingly difficult to fill their blue-collar job openings. The Covid-19 pandemic and the Great Resignation have contributed to this hiring shortage, but attracting and retaining skilled blue-collar workers was an issue even previously. With older workers retiring and many younger workers opting for four-year degrees or white-collar work, companies need to adjust their blue-collar recruitment strategies. Skills-based hiring locates talented workers by focusing on skills instead of education and prior job experience. Using skills assessments and structured interviews, and investing in upskilling and employee development, are all ways to take a skills-based approach to blue-collar recruitment. This article contains everything you need to know about taking a skills-based approach to blue-collar recruitment.
White-collar jobs can be really difficult to hire for because the roles and responsibilities of white-collar workers are often a blend of high-level hard and soft skills and experience. This makes tasks and roles can be hard to define. Traditional hiring practices seem to ignore this crucial question by gathering the fluid work responsibilities of white-collar jobs into singular job titles and organizational hierarchies. In other words, they use blue-collar hiring practices for white-collar jobs. With rapid ongoing changes in technology, consumer behaviors, and employee demands, this overly simplistic view of white-collar work compromises organizational agility, growth, innovation, diversity, and a positive employee experience. On the other hand, adopting skills-based hiring practices and working models caters to the fluid responsibilities and requirements of white-collar work by centering skills over degrees, resumes, and cover letters during the hiring process. Let’s take a look at the skills necessary for such jobs before diving into six examples of white-collar jobs and how to hire for them.
Entry-level jobs are historically difficult to fill, with 41% of recruiters reporting that they are the hardest positions to hire for. Although many employers blame entry-level talent shortages, the real culprit is traditional hiring methods that aren’t optimized to locate and retain entry-level talent. Outdated practices like cover letters, resumes, and inflating the worth of degrees disregard workers who may have little to no experience but have the skills to succeed. The result is a hiring catch-22: Candidates need experience to get a job, but they need a job to get experience. This isn’t just a nightmare for job-seekers. It severely limits an employer's talent pool, leading them to miss out on diverse candidates with fresh perspectives. Skills-based hiring levels the playing field by opening up entry-level positions to any skilled candidate, regardless of their background. Read on to discover how candidates and employers alike can benefit from skills-based entry-level hiring.
When you’re launching a startup, building the right team is everything: 14% of startups fail due to not having the right people on board. And yet, it’s fraught with complications. Let’s say you’ve identified social media as a key engine for your brand’s growth in the next six months. You know you need a dedicated team member to craft your strategy and manage your channels, but when it comes to hiring, you find yourself in a bind. One of your candidates is highly skilled in social media management and would undoubtedly maximize the effectiveness of your social media push in the short term – but their long-term career goals don’t align with your vision for the role. Your other candidate isn’t as experienced, so their effectiveness in the short term might be less impressive. However, they’re keen to progress with your company, and they have a broad range of additional marketing skills that could inform your other initiatives. Who do you prioritize: the candidate who provides the best short-term fit, or the one with the most potential to scale with you? This dilemma is one of the most challenging parts of HR for startups, and we’re here to help you navigate it. In this blog, we take you through the benefits and drawbacks of hiring for short-term fit vs. the potential to scale, when it’s appropriate to use each strategy, and the best practices for doing so.
The healthcare industry is one of the largest in the US. The market size was valued at $359.2bn in 2022 and is projected to reach $781.5bn by 2030. This massive industry is currently facing a massive talent gap. Thousands of healthcare workers are leaving the industry, and too few are coming in. This means the healthcare sector needs to attract talent, stay competitive, improve working conditions, and retain top employees. It’s certainly a tall order, but there’s a solid solution to each of these issues. Let’s take a look at the current state of the healthcare industry and how skills-based hiring helps fill talent gaps, hire better candidates, and retain workers.
It’s well-known that STEM industries – industries under the umbrella of science, technology, engineering, and math – are some of the least diverse industries out there. Despite that the skills needed for a software engineer are not inherent to any race, gender, or other demographic categories, 93% of professional developers are men, more than 40% are White, and more than 98% do not have a disability. Given that more than 90% of organizations that switched to skills-based hiring in 2022 saw an increase in diversity, it’s understandable for STEM leaders to consider skills-based hiring as an antidote – but can it work? This blog explores the different diversity issues plaguing STEM industries and how skills-based hiring can help.
Skills-based hiring is a broad hiring approach that covers everything from job descriptions and talent assessments, to structured interviews and work samples. Find out how to implement skills-based hiring for your organization in the best possible way.
A good hiring process helps you attract and secure the best candidates for your open roles, but traditional methods just aren’t cutting it anymore – 87% of employers are having difficulties with resumes, although 82% still use them to hire. In this blog, you'll find 11 best hiring practices to follow so you can identify skills and start filling positions effectively and efficiently.
Our 2023 State of Skills-Based Hiring report reveals that both hiring teams and candidates are increasingly dissatisfied with ineffective and unfair traditional recruitment practices. But hiring methods are changing. We found that 76% of companies are already embracing skills-based hiring. The best part? Candidates hired in this way are happier in their roles, stay longer, and perform better. We know skills-based hiring increases hiring ROI while reducing time-to-hire and employee churn. But we’re no strangers to its challenges either since we practice what we preach in our own organization. That’s why we’ve put together 10 best practices to help you get started with skills-based recruitment and selection.
A switch to skills-based hiring brings major incentives. Our own research shows that not only is it the norm, with almost three-quarters of businesses already using it, but of those businesses: 74% saw a reduction in cost-to-hire 82% saw a reduction in time-to-hire 84% saw an increase in diversity However, like any transformation, it can’t happen overnight. To get these big results, you first have to make big changes. You can’t simply swap resumes for personality tests and find motivated candidates right away. In this post, we discuss the barriers that are standing between you and skills-based hiring. These include the roadblocks to prepare for, the systems you need to put in place, and the proper approach to get buy-in from senior executives. First, we need to talk about where resistance to skills-based hiring comes from.
Nearly every role starts with a good job description. It’s there to display job responsibilities, cover important skills, and attract the right applicants. Job descriptions prepare candidates for success and reduce the chance of mis-hires. But how are they different when you take a skills-based approach to hiring? Skills-based job descriptions focus on skills and responsibilities, avoid listing unnecessary degree requirements, and promote learning and upskilling. Skills-based hiring is the future of hiring, with 76% of companies using it. If you’re considering making the switch from traditional to skills-based hiring, then you need to know how to write skills-based job descriptions. Let’s discuss what differentiates a skills-based job description, how they attract better candidates, and our top tips for writing a job description focused on skills. As a bonus, we’ve included a detailed skills-based job description template at the end of the article.
In a bid to compete in the war for talent, more companies are removing degree requirements from job descriptions, adopting skills-based hiring, and implementing pay transparency measures. According to our 2022 State of Skills-based Hiring report, 76% of employers across the US, UK, Australia, Canada, and New Zealand are using competency-based recruitment to build more diverse, resilient, happier teams.¹ This means that traditional compensation models based on qualifications, experience, or tenure may no longer be fit for purpose. But how do you fairly compensate people when these factors are removed from the equation? Enter skills-based compensation, which rewards people based on the skills they bring to or acquire in the role. It can also give your company a competitive advantage, make you more attractive to candidates, and help create a fairer work environment that makes for happier employees. Applying skill based pay isn’t always straightforward, though. For example, how do you ensure it’s implemented in a way that’s equitable and sustainable? We’ll look at what skills-based compensation is, the benefits and challenges of applying it, and six strategies to help you do just that.
An ideal candidate profile (ICP) is a common recruiting tactic used by hiring managers. These documents include the ideal requirements for open roles, such as skills, work experience, education, motivation, and career goals. But a few of those points can be problematic. When you make assumptions about a candidate’s “required” experience and education, it narrows your talent pool – or even worse, it leads to a bad hire. So what about a skills-based ideal candidate profile? Developing an ICP that focuses on skills and competencies makes it an even more effective recruitment tool. This article delves into the issues with traditional candidate profiles and explains how to develop skills-based ICPs. We’ve also included an example template for a skills-based ICP at the end.
Skills-based hiring is a growing trend that shows no signs of abating, with 53.4% of respondents believing it will be the dominant hiring method in the future. Stay ahead of the curve by reading all the insights from our annual report, and explore our range of resources to help you make better skills-based hiring decisions.
TestGorilla's annual report: The State of Skills Based Hiring
Is this the end of resumes? The State of Skills-Based Hiring in 2023
Explore our science series to learn more about the science behind skills-based hiring
Read our free skills-based hiring glossary
Sure, scaling fast is a “good problem to have.” But it can also quickly become your worst nightmare. When your company is experiencing a growth spurt, you may not have the workforce needed to meet escalating business demands. You’ll need more employees ASAP – and not hiring fast enough could mean losing business, damaging customer trust, and angering investors. However, the pressures of fast recruitment can also lead to rushed decision-making and mis-hiring. This then disrupts growth, stifles r
Ask any recruiter about the importance of skills and they would say it’s one of (if not the most) important factors when selecting a candidate. However, in traditional hiring, skills assessments come a lot later in the process than resume screening. And indeed, for decades, candidate selection has been synonymous with resume screening. Evaluating resumes and looking at degrees, job titles, and years of experience have been the cornerstones of the selection process. However, if that’s your way o
After onboarding Antonio, your newest tech hire, you're excited to report to your leadership team that you're one step closer to fulfilling your company's diversity, equity, and inclusion (DE&I) quota. It’s part of a push to make your organization more diverse in light of growing awareness of the positive impact on innovation, employee morale, and overall business success. However, after a few weeks on the job, you notice Antonio's skills on paper don't match his expertise in real life. He’s str
After a few years at your company, business development representative (BDR) Alisha isn't feeling fully satisfied with her current role. However, she appreciates the company culture, values her colleagues, and believes in the company's mission. Alisha wants to stay within the company but would love for her role to align more closely with her passions and strengths: being a good networker and relationship builder. While being a BDR offers elements of that, she’s not loving the regular rejection
Your growing SaaS startup is at a pivotal point: You need to start thinking about ethically hiring interns to help support your business's growth. You also want to nurture and empower the next generation of talent in a responsible and socially conscious manner. To do this, you know you need a new way of testing and measuring skills that goes beyond traditional, unequal hiring practices like relying on resumes, connections, or degrees. Internship programs can effectively support your teams and gi
Picture two professionals. The first is a man working his way up in his career. He rises through the ranks quickly and feels supported and celebrated by his peers. When he pitches an idea, people run with it, and he’s trusted to lead teams even though he doesn’t have management experience. Now picture a woman who’s also trying to progress through the ranks. Although she’s led teams in the past, that experience seems to be invalidated or not taken into consideration. When she proposes an idea in
White fonting – aka “the small white word trick” – is the practice of stuffing resumes with relevant keywords in white font. This means they get picked up by resume screening tools but can’t be seen by humans. While it’s not new, white fonting has gained in popularity recently thanks to TikTok influencers claiming it’ll help you get noticed. Unfortunately, it’s not the only “black hat” trick candidates use to game the system. At best, these tactics erode trust and waste time and resources. At
If you’re a software developer, a few years ago you’d hop onto a pair programming session when you were having issues with your code. Today, you can use AI for debugging without having to reach out to a coworker for their help. This is just one of countless examples of how AI is driving people to interact more with machines at work and less with each other. This shift in workplace practices will only accelerate as AI eliminates more and more support roles and diminishes the need for people to s
If you’re interested in anything skills-based hiring-related – whether it’s rate of adoption, employee attitudes, or the benefits and impact of this hiring practice – then you’re in exactly the right place. We collected responses from 3000 employers and employees to bring you The State of Skills-Based Hiring 2023; now, we’re bringing you 47 key skills-based hiring statistics.
We collected responses from 3000 employers and employees to bring you The State of Skills-Based Hiring 2023. The data paints a clear picture of the state of play when it comes to how we hire: Skills-based hiring is on the rise, and mistrust in resumes is growing – but the majority of employers are still using them. In this blog, we’ve pulled specific data from our report to bring you 17 essential resume statistics.
It’s well known that diverse teams perform better, but getting them through the door is only part of the equation. You need to create an inclusive environment to retain talent long-term and maximize ROI on hiring. With 54% of people prepared to quit in the first six months due to factors like a toxic workplace or lack of cultural alignment, that’s no easy task. Diversity, equality, and inclusion (DE&I) councils are now emerging as one way to drive DE&I efforts in your organization. These co
“We know that he has problems in qualifying, he has fluctuations in form, he is South American, and he is just not as completely focused in his head as Max [Verstappen – Dutch] is or as Sebastian [Vettel – German].” These were Helmut Marko’s remarks about F1 driver Sergio Perez (who is from Mexico, so he’s actually North American). Helmut’s comment caused a mini outcry, but this attitude isn’t uncommon and is just one example of how a lack of awareness can cause harm and offend certain groups.[