Skills-Based Hiring: The Key to Enhanced Diversity and Improved Company Culture

Traditional hiring practices can sometimes overlook a candidate equipped with the best skills to fill a specific vacancy. But there’s another potential downside to a recruitment process which fails to focus on job applicants’ skills and abilities: a lack of diversity and inclusion.

The solution is skills-based hiring, which aims to match the requirements of a job description with candidates’ verified expertise. This delivers two important benefits. Firstly, successful new hires are more likely to perform effectively from day one. Secondly, the objective assessment of an applicant’s skills, rather than their formal qualifications or experience, can boost workplace diversity which in turn fosters a culture of belonging.

Skills-based hiring and diversity

Skills-based hiring, as opposed to traditional credential-focused hiring, can significantly promote better diversity and inclusion (D&I) in the workplace. Reducing the emphasis on formal education and qualifications opens opportunities to candidates from diverse backgrounds, including those who may have gained their skills through apprenticeships, online courses and on-the-job experience.

When employers prioritise skills and competencies over specific degrees, industry experience or career paths, they in turn expand their talent pool. The objective criteria and structured, consistent interview questions typically used in skills-based hiring help to mitigate any unconscious bias based on a candidate’s name, ethnicity, gender, educational background, employment history or disability.

The below are examples of organisations that have successfully diversified their workforce through skills-based hiring:

IBM

The IBM Apprenticeship Program provides an opportunity for candidates without degrees to acquire new technical skills while getting paid, closing the opportunity gap while narrowing the skills gap.

Google

Google Career Certificates offer online training programs to prepare applicants with job-ready skills, not just for roles at Google but also with Australian partner companies providing free scholarships and support for learners.

Accenture

Accenture has been vocal about its commitment to inclusive hiring practices. It has used various tools and strategies, such as its Movement to Work and early talent recruitment programs, to overcome bias and assess the skills of candidates rather than focusing solely on their educational or socio-economic background.

How skills-based hiring impacts company culture

Recruiting for skills will have the added benefit of creating a sense of belonging for employees hired for their abilities rather than their background. This sense of belonging will have a positive flow-on effect on company culture.

Why employees need to feel they belong

Fostering a sense of belonging in the workplace is crucial for the wellbeing and productivity of employees, which in turn significantly contribute to the overall success and sustainability of their employer. Employees who feel that they belong are more likely to experience job satisfaction, a higher level of engagement, and a readiness to collaborate with their team and go above and beyond in their roles.

Diversity and inclusion create a sense of belonging

Diversity and inclusion in the workplace create an environment where all employees feel seen, heard and valued. This environment is essential for fostering a sense of belonging, eliminating any individual’s perception that they are somehow an outsider or the odd one out. When employees from every type of background feel secure about being their genuine selves at work, the special qualities that each one has to offer can come to the fore and be harnessed for the benefit of the team and the organisation as a whole.

Skills-focused recruitment automatically promotes diversity

The best way to develop a culture of belonging is by fostering diversity. Employees naturally want to be a part of a team effort and the company vision, and they will connect and collaborate with their colleagues more readily if their company culture is diverse rather than exclusionary. People hired impartially for their demonstrated skills – rather than for theoretical competence or an accepted background – are more likely to feel that their contribution is valued, that they are supported in their daily tasks and career development, and that their goals align with that of the organisation.

Diversity enhances innovation

Acknowledging and embracing diverse perspectives not only boosts cohesion, but also innovation. A diverse and inclusive environment encourages employees to collaborate and learn from one another, in teams that include a range of perspectives. Research conducted by Harvard Business Review provides evidence that diversity and inclusion unlock innovation and drive market growth.

A diverse culture boosts profitability

Employees who are part of a diverse culture will interact successfully, exchanging ideas, information and viewpoints, with the likely result that problems are solved and decisions made faster and more efficiently. McKinseys’ Diversity Wins report shows that companies with gender and ethnic diversity and inclusion are far more likely to have above-average profitability.

An inclusive culture attracts and retains talent

Inclusive recruiting also gives you access to a wider talent pool, while employees with a sense of belonging are more engaged and invested in their work, with a resulting positive effect on retention rates.

Start boosting your D&I

Here are some practical ways to grow and retain a diverse talent pool through skills-based hiring:

1. Identify required skills, rather than qualifications or background, using job descriptions.
2. Conduct structured job interviews which ask all candidates the same set of skills-based questions for the purposes of unbiased comparison.
3. Train your hiring team in skills-based hiring practices.

Use skills-based hiring tools, such as AI-driven platforms, to screen for proven abilities, eliminate bias and promote diversity.

Skills-based hiring is a natural fit for diversity goals

Prioritising tangible skills and abilities over qualifications and background will automatically boost diversity and inclusion in your workforce. Equitable, unbiased and consistent skills-based recruitment from a more diverse candidate pool will naturally lead to a more inclusive workforce, where people with a variety of talents and backgrounds can find their own niche in a cohesive team.

Leading global organisations have committed to skills-based hiring and the resulting workforce diversity which brings proven tangible benefits, including an improved company culture resulting from employees experiencing a greater sense of belonging. Diversity is also linked to increased profitability, enhanced innovation and boosted staff retention rates.

Adecco’s recruitment experts can help you get started on your skills-based hiring program to promote workforce diversity. Get in touch with your local Adecco team to find out how.

“Unlocking Talent: A Comprehensive Guide to Skills-Based Hiring” guide. Download now.