When Massachusetts Governor Maura Healey signed an executive order in January establishing the “Lead by Example” employer talent initiative, it was the latest step in a growing movement and acceptance as the new standard for talent acquisition. It demonstrated a growing movement: skills-based hiring.
This mandate prioritizes the job applicant's skills, knowledge, and abilities.
Higher education degree and similar qualifications. Skills-based employment, often associated with the private sector, is also reshaping the way public organizations find, screen, and hire new talent.
Because few employers can match the size of the U.S. government.
2.95 million workers as of September last year – perhaps no business is more likely to benefit from a large-scale shift to skills-based employment. What can the federal government learn from smaller initiatives like Lead by Example? How should it adapt its approach? – Think about how it would benefit both Sam.
For employees, the most important benefit of skills-based hiring is quite simple: reducing bias in the hiring process. Especially at a time when the winds may be shifting in the opposite direction (last year, the U.S. Supreme Court struck down affirmative action college admissions practices), vast numbers of American workers have been overlooked and excluded. and should welcome all developments that promote a just society. , competency-based recruitment market.
To be clear, skills-based hiring is not just about ensuring diversity, equity, and inclusion. Its focus is on connecting the right candidates to the right jobs and employers, regardless of the nature of the implicit bias. “The administration recognizes that job seekers have a wide range of skills and no one can narrow it down to one line on a resume,” Massachusetts Lt. Governor Kim Driscoll said of her state's “Leading by Example” initiative. ”
When those applicants are ultimately hired, their success tends to be based on their skills and experience rather than their education. According to Harvard Business School: [bachelor’s degree] Jobs that previously required a degree experience an average salary increase of about 25%, which equates to more than $12,400 per year. ”
Skills-based training helps qualified workers break through so-called “paper ceilings,” overcome racial, gender, and similar biases, and even overcome personal challenges (such as interview anxiety). Helpful. The promise of higher salaries, not to mention pensions and security, attracts many job seekers to government jobs. If there was an obligation for an employer to mobilize a workforce that is unbiased, purposeful and inclusive, and representative of all potential hires, wouldn't it be the U.S. government?
Most Americans want to know how their hard-earned tax dollars are being spent, and whether they're spending them properly. In many ways, this makes it even more risky for the U.S. government and its policymakers than for typical employers. So, when the possibility of the federal government adopting a skills-based employment approach arises, the questions that follow cannot be ignored. “Will it work?”
The simple answer is yes. However, there is one caveat. For a variety of reasons, employers struggle to meet the needs of a growing and changing workforce. Boston Consulting Group cites technological advancements such as artificial intelligence as an example of calls for increased levels of employee skill-building and task-specific training. But even candidates who have theoretically received the latest preparation for the job market are disappointed by their employers.
BCG cites a study by Pearson Business School that notes that “only 13% of college graduates have the skills needed to start work immediately.” Furthermore, 54% of college graduates are not working in their field, and the jobs that will be available in 5-10 years may not exist today. For all these reasons, the value of traditional degrees is being questioned. ”
With more people turning to alternative training methods, many employers now value demonstrable skills over degrees. Skills-based hiring also allows companies to connect with and identify the best employees for specific roles based on what a prospect can do, rather than acquaintances, education, or a hiring manager's intuition. can. That smooth hum you hear is the sound of your tax dollars being used efficiently.
We have established that skills-based hiring can ensure fair and unbiased employment, result in a more diverse workforce, enrich company culture, bring in more perspectives, and foster productivity and innovation. . This will help fill the current talent gap and help employers find more and better qualified candidates. It has also been proven to improve employee retention rates. Put aside your moral obligations for a moment. Skills-based talent acquisition should be an absolute challenge for employers seeking productivity, efficiency, and cost savings.
So what are those caveats? Simply put, most employers aren't very good at it.
“One of the biggest barriers for companies moving to skills-based practices is not recognizing the barriers they're putting in place,” Brian Hancock, a partner at McKinsey & Company, said in a recent podcast. he said. “They don't know how to evaluate others, and it's hard for them to think through and say, 'We need these soft skills.'”
Currently, the most common arguments against skills-based recruitment approaches are: “too hard.” The truth is, an effective recruitment program that emphasizes skills over qualifications is relatively easy and affordable, especially when you consider the alternatives. According to Harvard Business School, the key is follow-through. “While progress to date has been lackluster, we find substantial benefits for companies that have demonstrated meaningful commitment to skills-based employment practices. Our analysis shows that increasing access can be a win-win for both employers and workers.”
Policymakers in Healey and Massachusetts appear to understand the challenges at hand, and as part of the state's new skills-based hiring mandate, “Recruiters will be able to use this new hiring strategy effectively for the first time.” “They will receive the training and tools to do so.” And, with the right methodologies and tools, scaling skills-based recruitment programs is well manageable, leading to significant operational benefits and cost savings for large employers like the U.S. government. Masu.
Indeed, steps are already being taken to support skills-based employment at this level. In March, President Joe Biden issued an Executive Order on Investing in Registered Apprenticeships, which “helps employers develop and prepare the workforce of the future and provides individuals with paid training, work experience, and “Industry-driven career paths that offer competitive pay raises and classroom opportunities.” Instructions and portable nationally recognized certification. ” The president envisions the federal government as a model for skills-based employment.
This could represent an inflection point. By opening new routes to employment in government programs, more candidates who are passionate about and understand the work best will receive fair consideration. The right people in the right jobs make government work better and taxpayers get more benefits.
As Americans, we all benefit from smarter hiring and what some might call a “more perfect union.”
Josh Millet is the founder and CEO of Criteria Corp, a talent success company that uses science-backed assessments to help companies reduce bias and make better hiring decisions.
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