Skills-based hiring: definition, benefits and practices

Skills-based hiring uncovers hidden talent, eliminates educational bias and fights fraud in resumes and other AI-generated documents. The skills needed...
23 May 2024

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Skills-based hiring: definition, benefits and practices

Skills-based hiring uncovers hidden talent, eliminates educational bias and fights fraud in resumes and other AI-generated documents.

The skills needed today have changed and so has the business structure to adapt to the current technological revolution

The search is on for the candidate who will add value to a project and to find this profile it is necessary to adapt the selection processes.

In response to this change, recruiting processes are adopting competency assessment strategies capable of evaluating candidates directly beyond the resume itself. 

In this article, we will explore the concept of skills-based hiring, its benefits and some practices that will help you incorporate this strategy.

Skills-based hiring: definition, benefits and practices

What is skills-based hiring?

Skills-based hiring is a recruiting technique that relies on competencies rather than a candidate’s experience or resume information. 

This process requires an evolution of the hiring process, which must be able to assess a candidate’s hard skills and soft skills

In traditional hiring models, these skills were not emphasized because they were considered inherent to the degree listed on the resume or the experience detailed in the document. 

This modus operandi resulted in the loss of some very talented profiles that did not make it past the early stages of the selection process because they did not reflect a number of educational or experiential characteristics.

The new trend in Human Resources departments is to focus the process on the analysis of competencies to try to compensate for these deficiencies, which have discarded profiles with high potential

In turn, these skills must respond to the company’s needs and become key to the performance of the job offered. 

Why skills-based hiring is on the rise? Benefits you should know

The benefits of skills-based hiring include improving the quality of hires. We discuss this and other benefits below. 

Improve the quality of hires

This kind of recruitment not only gives you access to more qualified candidates but also allows you to optimize the time and money you invest in the selection process. 

On the other hand, direct assessment of the candidates increases the success rate of the hire, since the people selected based on their skills are prepared to assume the responsibilities of the position. 


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Minimize the risk of fraud

Processes that rely on the content of a resume or cover letter sent to apply for a job can be vulnerable to fraud

Today, many people have access to content generated by AI applications such as ChatGPT. This has become so commonplace that many recruiters have started wary of using the content of these documents as a selection criterion. 

As a result, many professionals have come to the conclusion that skills cannot be inferred from a resume, but must be verified firsthand.

Why skills-based hiring is on the rise? Benefits you should know

Avoid preferential bias in educational requirements

Traditionally, personnel selection processes have used, as we have advanced, educational criteria as an initial bias, discarding, without delving into anything else, all people who lacked a certain level of studies. 

This procedure has led to a kind of positive discrimination of those profiles that could access studies in universities or prestigious training centers. 

On the other hand, in the information society, high potential profiles can have access to specialization without going through a degree that can be economically inaccessible for many. 

Help discover profiles and promotes inclusiveness 

Adopting a skills-based hiring strategy promotes inclusiveness and attracts hidden talent that may be highly qualified and strategic to the performance of the vacant position.

In addition, the volatility of today’s markets requires a set of power skills specific to each organization or business objective that are not typically assessed or developed through generic training processes. 

In addition to these benefits, this kind of recruitment allows companies to have very diverse teams that can complement each other to meet the challenges of today’s uncertain markets.

Skills-based hiring practices

If you want to organize your selection processes based on skills-based hiring practices, it is important to act on 3 basic levels.

Involve everyone in the hiring process

Ask management, managers, other departments and suppliers that are directly or indirectly involved in the selection process to participate. 

This knowledge will be very useful in identifying the real needs of the company.

Skills-based hiring is a recruiting technique that relies on competencies.

Develop a customized strategy

Develop a recruitment strategy based on the assessment of competencies and choose the most appropriate tests, such as the competency-based interview.

One of the most effective tools you can use in the competency definition phase is the roles and responsibilities template, which will help you to accurately define candidate selection criteria.

Commit to a culture of learning

Implement a continuous learning culture in your organization to keep your teams’ skills current through reskilling and upskilling

Formative reskilling helps hone existing skills, while upskilling enables people to acquire new skills.

In both your recruitment strategy and trainings, technological innovations not only help you automate processes and improve resource management, but also enable you to provide respectful, safe, and inclusive sharing and assessment environments. 

Smowltech’s proctoring plans are online monitoring solutions that allow you to create spaces that protect the privacy of your employees and increase the quality of your recruitment. We offer a free demo so you can learn more about the innovative solutions we have developed to enhance your competency-based assessments.


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