Skills-based hiring: An equalizing shift in frontline hiring is underway

If you haven’t updated your resume in a while, you’re not alone. Unless we’re actively hunting for a job, we rarely dust off this detailed list of work history, professional achievements, and education, which can be a pain to retool and update. And as for cover letters, how much time has been spent agonizing over what to say to a prospective employer in two required paragraphs–and was it really necessary to land that job?

That question has prompted a rethink of application requirements, especially in skills-based industries where companies looking to hire large numbers of frontline workers have been facing labor shortages. For example, do you need to require a resume and cover letter for an assistant line cook who is setting up the prep station, stocking inventory, and maintaining sanitation standards? Or would a short Q&A about background experience in restaurants be more telling?

It’s these kinds of strategic changes that many companies are considering. Instead of focusing on a time-consuming approach traditionally used to recruit corporate workers, many of these organizations are moving toward a more skills-based approach to hiring. It’s a strategy that is better for candidates applying for these jobs and also helps the companies achieve major talent pipeline goals: timely hiring, equity, and longevity.

Meet workers where they are

When we think about the typical candidate for these roles, their job experience is often varied and may include skills learned on the job, not in a classroom. Even if this worker has a resume, it may not capture the full scope of expertise or capacity to learn. Furthermore, the speed with which an hourly candidate is looking for work is typically not aligned with the traditional 3-4 week timeline needed for a recruiter to review a batch of resumes and cover letters, and conduct the interview process.

Between 2017 and 2019, Harvard ran a study analyzing 51 million job postings in the US that showed employers reduced degree requirements for nearly half of middle-skill positions where some post-secondary education was originally needed. While the use of resumes and cover letters remains the primary source for communicating educational background and professional experience for corporate jobs, in the frontline and hourly worker space a more significant shift is happening. In this high-volume recruiting space, companies that are hiring for everyone from restaurant staff to retail associates, and resume requirements have been progressively disappearing from job applications in favor of a skills-based hiring approach.

Broad appeal: Recruiting candidates with diverse skills and experiences

The business case for more diverse workforces has never been clearer; culturally diverse companies outperformed their less-diverse peers by 36% in profitability, according to a 2019 McKinsey study. But first, companies need to attract a diverse group of candidates. When it comes to hiring for skills-based roles, requiring resumes and utilizing them as a basis for evaluation is often a roadblock for candidates who are otherwise qualified to perform the job. By removing this application barrier, recruiters can encourage candidates with different experiences and abilities to apply, and ultimately create a more inclusive, successful workforce.

This is an area where we are already seeing a positive shift thanks to technological advances like recruiting and HR tools that assess skills in the interview process and implement best practices for conducting job interviews. This gives recruiters the opportunity to consider candidates who may not have all the necessary skills but demonstrate adaptability and a desire to learn and grow.

Building a skills-based hiring strategy for the long term

Companies looking to move toward a more skills-based hiring strategy should consider four key steps: (1) reviewing job descriptions, (2) integrating assessments, (3) conducting interactive interviews, and (4) training your recruiting team. Job descriptions are an organization’s welcome mat; each should clearly outline the skills required for success and include language that indicates openness to training candidates with enthusiasm. As a best practice, standardizing skills across all job openings for the company can create greater consistency in hiring practices.

Leveraging assessments and more interactive interview elements is a tactical way to focus on skills throughout the recruiting process. Tests that are integrated through an ATS can measure candidate skills and help recruiters assess “teachability”. At the live interview stage, including exercises where the candidate can act out potential on-the-job scenarios can help recruiters see how an applicant thinks on their feet and their potential fit for the role.

Related: Small businesses are hiring, but can they afford to keep new employees?

Setting new standards

When done well, skills-based hiring can open doors and create a workplace with more equitable opportunities. Key to this, however, is an investment in regularly training recruiters and analyzing hiring data to ensure your hiring processes are working effectively. Train recruiters on properly utilizing an ATS and leveraging AI-backed tools. Consistent review of feedback and data can highlight any unintended biases and gaps in the evaluation process.

Building an inclusive work environment starts with giving every applicant a fair chance to not only secure a job but also succeed in their role. This move toward skills-based hiring can have a meaningful impact on achieving this and ultimately lead us to create better, more innovative, and successful companies across industries.

Hope Weatherford, Global Head of People, Fountain