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Three steps for skills-based hiring: 'Nearly 1 in 3 skills for a job will no longer be needed in 2022'

Skills-based hiring looks set for a breakthrough in 2022. Due to skill shortages, recruitment will shift its focus from roles to specific skills. But how?

Jasper Spanjaart on March 15, 2022 Average reading time: 3 min
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Three steps for skills-based hiring: 'Nearly 1 in 3 skills for a job will no longer be needed in 2022'

Business all over the world view the building of skills and competencies as their number one priority for 2022, according to a Gartner report. The emphasis on skills is there for a reason, as those very same business face unprecedented labour and skills shortages. As the total number of job vacancies boom in pretty much every country, the number of skills needed by employees has increased by an average of 6.3% each year since 2018.

Roughly 33.3% of all skills that were needed just four years ago, have become irrelevant for a job now.

And perhaps more problematically, Gartner’s research found that nearly 1 in 3 skills needed for a job in 2018 will no longer be needed in 2022. In other words: roughly 33.3% of all skills that were needed just four years ago, have become irrelevant for a job now. Take the example of data scientists. From a pool of 139,992, just four technical requirements and three years of experience eliminates 98% of the candidate pool. That leaves companies to fish in, what is in many ways a puddle.

Source: Indeed Flex

Go for specific skills, rather than roles

It all brings us to what Indeed Flex expects will have to change in recruitment. In 2022 business will focus on hiring specific skills rather than filling preconceived roles. “This will enable more flexible and strategic operation. As staffing efforts focus exclusively on the value a candidate brings to the business . Not whether they fit a traditional set of expectations”, the research states.

Step 1: Reimagine the interview process

The root of many problems is the first area to attack, say Indeed Flex. The interview process has long been an utilised source of bad decisions. It usually seeks out those who have prior work experience. And it works against those whose CV may be less perfect for the position. “Many businesses will focus on credentials when looking for specific skill sets”, the research says.

The interview process should therefore be reimagined to give candidates the opportunity to demonstrate specific skills.”

“But this risks missing out on candidates who may have exceptional skills – but not yet the experience to show it. The interview process should therefore be reimagined to give candidates the opportunity to demonstrate specific skills. Including competency tests and problem solving tasks.”

Step 2: Find under-utilised talent pools

Underemployed people are everywhere. The UK has approximately 1.5 million underemployed people. And while the unemployment rate in Europe has gradually decreased, Eurostat estimates that 13.346 million men and women in the EU, of whom 11.225 million in the euro area (EA), were unemployed in January 2022.

By looking at talent pools which are traditionally not considered, such as students or retired people, businesses may be able to find highly-skilled labour which is more flexible and cheaper.”

“Shifting to a skill-based hiring system is a prime opportunity for employers to widen their recruitment net”, the report states. “By looking at talent pools which are traditionally not considered, such as students or retired people, businesses may be able to find highly-skilled labour which is more flexible and cheaper.”

Step 3: Embrace short-term workers

If it wasn’t already abundantly clear: it is a freelancer’s world. According to Randstad Sourceright’s Talent Trends 2022 report, 71% of human capital and C-Suite leaders plan to shift roles to contingent, project or contract. Europe’s workforce consists of approximately 14.02% freelancers. Eurostat data shows that there were roughly 27.6 million self-employed people working in the 27 European Union countries.

“To combat this, businesses can bring in temporary talent with very specific skills on a flexible basis.”

“Skill-based hiring often leads to inefficient hires, because the candidate is brought in for a particular skill which may not actually be needed 40% of the time”, the research says. “To combat this, businesses can bring in temporary talent with very specific skills on a flexible basis, in order to plug their skills gaps without committing to a full-time hire.”

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Jasper Spanjaart

Jasper Spanjaart

Editor-in-Chief and Writer at ToTalent.eu
Editor-in-Chief and writer for European Total Talent Acquisition platform ToTalent.eu.
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