Hiring the right talent is crucial for any business's success. Traditional hiring methods, which rely heavily on resumes and applications, often provide only a superficial view of a candidate's suitability.

This approach can overlook the actual skills and potential of applicants. Enter skills-based hiring, where pre-employment assessments and skills-based resumes play pivotal roles by focusing on a candidate's abilities and competencies rather than just their credentials or work history.

The Evolution of Skills-Based Hiring

In today's rapidly changing job market, the demand for specific new skills often outpaces the availability of candidates with traditional qualifications. Employers are recognizing that a candidate's ability to perform a role isn't solely determined by their educational background or previous job titles. Skills-based hiring emphasizes practical abilities, transferable skills, and potential—factors that are often better indicators of future success.

This shift is especially relevant as many individuals acquire valuable skills through non-traditional means. Online courses, coding boot camps, freelance work, and self-directed learning have become commonplace. The rise of AI and digital platforms has democratized education, enabling people to develop competencies that make them valuable assets, even without conventional career paths.

The Power of Pre-Employment Assessments

Pre-employment assessments have become vital tools in the skills-based hiring process. These assessments delve deeper than resumes or interviews, evaluating a candidate's knowledge, skills, personality traits, values, and potential. They provide richer insights, enabling employers to make more informed hiring decisions.

Companies using assessments often experience enhanced hiring accuracy. By objectively measuring a candidate's capabilities, employers are more likely to be satisfied with their hires (36% more likely). Assessments streamline the recruitment process by focusing on candidates who demonstrate the necessary skills upfront, reducing time and costs associated with unsuitable applicants.

Moreover, standardized tests create a more level playing field, minimizing unconscious bias and leading to more meritocratic hiring. Organizations using assessments experience 39% lower turnover rates, as new hires are more likely to be a good fit.

Embracing Skills-Based Resumes

Alongside assessments, skills-based resumes (also known as functional resumes) are becoming more prevalent. Unlike traditional chronological resumes, skills-based resumes highlight a candidate's abilities and accomplishments, focusing on what they can do rather than where they've been.

Skills-based resumes offer several benefits. They focus on relevant skills, allowing candidates to showcase abilities that directly relate to the job, even if these skills were gained outside traditional employment. This format is ideal for a diverse range of candidates, including career changers, recent graduates, those with employment gaps, or individuals with varied work experiences.

Learn how to write more inclusive job descriptions to empower underrepresented candidates to apply to your open roles

Evaluating Skills-Based Resume

As a recruiter embracing skills-based hiring, it's essential to know how to interpret skills-based resumes effectively. Unlike traditional chronological resumes, skills-based resumes highlight a candidate's abilities and accomplishments, focusing on what they can do rather than where they've been.

When reviewing skills-based resumes, consider the following:

1. Look for Relevant Keywords: Candidates may optimize their resumes for Applicant Tracking Systems (ATS) by incorporating job-specific keywords. Ensure these align with the skills required for the role. This alignment can help you quickly identify candidates who possess the necessary competencies.

2. Focus on Achievements: Pay attention to how candidates highlight their accomplishments and the results they've achieved using their skills. This focus provides insight into their potential impact within your organization.

3. Assess Additional Qualifications: Candidates might include certifications, training, and professional affiliations that bolster their qualifications. These elements demonstrate a commitment to professional growth and can indicate proficiency in specific areas relevant to the role.

4. Understand Their Work History: While the emphasis is on skills, candidates often provide a brief work history for context. This information can help you gauge the environments in which they've applied their skills, even if their experience comes from non-traditional employment.

For example, a candidate might organize their resume by skill categories such as "Project Management," "Technical Proficiency," or "Leadership," detailing their relevant achievements under each. This format allows you to assess how their skills align with the job requirements, regardless of their previous job titles or industries.

By familiarizing yourself with the structure of skills-based resumes, you can more effectively evaluate candidates who may bring valuable skills and fresh perspectives to your organization, even if their backgrounds differ from traditional candidates.

Advantages of a Skills-First Approach

Adopting skills-based hiring brings numerous advantages. By focusing on skills, organizations can tap into a wider talent pool, opening opportunities to candidates who may have been overlooked due to non-traditional backgrounds. This approach accelerates the hiring process since a larger pool of qualified candidates can reduce time-to-hire.

Moreover, reducing barriers like strict degree requirements promotes a more inclusive workforce, enhancing both diversity and merit within the organization. Employees hired for their skills and fit are more likely to stay longer, leading to better retention rates and reducing turnover costs. In fact, those without four-year degrees stay 34% longer than their degreed peers.

Skills-Based Hiring Best Practices

To successfully implement skills-based hiring:

1. Revise Job Descriptions: Lead with responsibilities and required skills rather than rigid qualifications. Emphasize what success looks like in the role. Job postings that focus on "responsibilities" receive 14% more applications.

2. Identify Essential Skills: Determine which skills are must-haves and which can be developed on the job. Be open to candidates who show potential.

3. Value Alternative Education: Recognize certifications, online courses, and self-taught skills as valid qualifications.

4. Look for Transferable Skills: Skills like communication, leadership, and problem-solving are valuable across various roles and industries.

5. Implement Skills-Based Assessments: Use assessments to objectively measure abilities. Tools like work samples or simulations provide practical insights.

6. Invest in the Right Tools: Utilize platforms that support skills-based hiring. For instance, Fetcher allows recruiters to specify desired skills, with a human-in-the-loop approach ensuring you receive candidates that truly match your criteria.

7. Promote Continuous Learning: Foster a culture that values ongoing development, attracting talent eager to grow and adapt.