McKinsey partner Bryan Hancock discusses skills-based hiring with a focus on evaluating job candidates based on their skills. The podcast explores the rise of skill-based hiring, shifting career paths, skills-based learning, talent diversity challenges, and upskilling initiatives.
Skills-based hiring diversifies talent pools by focusing on critical skills over formal credentials.
Assessing soft skills is a challenge in skill-based hiring, requiring structured interviews and tailored development strategies.
Deep dives
Benefits of Skills-Based Hiring
Skills-based hiring allows organizations to create access to opportunity by focusing on needed skills rather than formal job requirements like degrees. It helps in addressing talent shortages, especially in technical roles, by emphasizing underlying skills over specific credentials. This approach enables a more inclusive economy, expands the talent pool, and attracts a diverse range of candidates, particularly those traditionally underrepresented.
Challenges and Solutions in Skill-Based Hiring
One challenge in skill-based hiring is assessing soft skills effectively, which requires structured interviews and specific questions to evaluate applicants. Organizations also struggle with onboarding and developing individuals with skills-based profiles, necessitating tailored learning and development strategies to fill skill gaps effectively. By addressing these challenges and focusing on critical skills, companies can ensure success and retention of skill-based hiring cohorts while fostering a culture of diversity and inclusion.
The Future of Skill-Based Hiring
As organizations embrace skill-based hiring, they are rethinking their approach to talent acquisition and development. Gen AI and learning and employment records (LERs) play crucial roles in matching skills to job requirements and providing lifelong skill transcripts. Effective skill-based hiring strategies not only benefit recruitment but also internal talent mobility, enabling employees to explore diverse roles and fostering a culture of continuous learning and skill development.
With the rise of more technical roles across industries and sectors, and a shortage of people to fill them, skills-based hiring could help organizations access new talent pools. McKinsey partners Bryan Hancock and new co-host Brooke Weddle join global editorial director Lucia Rahilly in conversation.