'This will create a more targeted and efficient response to recruitment,' says expert
New research from Indeed shows that on-the-job experience is now seen as a more attractive quality of a job applicant than a university degree – which could change the culture of recruitment going forward, according to one expert.
“I think this will create a more targeted and efficient response to recruitment,” said Sarah Stone, Director of Client Learning, Strategy and Success at Linkable.
Globally, 81% of employers have adopted skills-based hiring practices, she said, citing her own research, with 94% observing that hires based on skills actually outperform those selected primarily for their degree certificate.
“I think the key things for recruitment is that it's getting much more targeted for the skills that businesses need as we change what skills are required for roles going forward. From a learning standpoint, we're seeing that skills are being trained in organizations more for key competencies rather than for the role itself.”
The survey by Indeed found that over half of employers (55%) agree that on-the-job experience is more attractive than a university degree – with 70 percent saying they will prioritise asking about an applicant’s experience to help them decide in recruitment.
“I’m seeing a real shift in what businesses are looking for. In times gone by, you were cut straight from the talent pool because you didn’t have the right qualifications. Now, if you can demonstrate practical experience, you’re in with a chance,” Stone said.
“I think we’re also seeing a change in tact from what university degrees need to offer. Skills like critical thinking and problem solving need to be at the forefront of education going forward – especially with AI coming into play.”
The move to set education aside in recruitment comes as most employers admit that their biggest hiring challenge is the lack of "quality" applicants.
With many institutions and organisations removing or dropping degree requirements in hiring, according to The Harvard Business School and Burning Glass Institute, there could be a shift in priorities when it comes to recruiting new staff.
What it does mean, though, is that employers will see a greater talent pool, according to Stone.
“You might actually be working a little bit smarter from a recruitment standpoint and asking questions that relate to wider company growth that just one specific job role: ‘What are the strategic capabilities that we need as an organization?’, for example. That might be the way forward to achieving goals and sales outcomes.”
This could make hiring more efficient and productive, she said.
“We’re seeing from the stats, too – that I mentioned earlier - that when we're hiring for those specific skills, we're actually seeing increased engagement and increased performance.”
The Australian Bureau of Statistics show that two million employees are working in jobs where their highest non-school qualification is not relevant.
Artificial intelligence is also becoming increasingly used across the C-Suite to streamline the ways in which people work and address workforce challenges.
Ahead of the National HR Summit in April, where Linkable is a sponsor, Stone says that this goes hand-in-hand with changes to the way businesses are recruiting.
“AI isn’t replacing roles, it’s just changing them. Skills are at the forefront of that which makes recruiters ask more questions about the person sat in front of them. Do they offer or demonstrate critical thinking? AI is a fantastic supporting tool – but without the right skills, you’ll fall behind.”
The workforce is changing and AI really is at the forefront of that change, she said.
“We’re looking more and more towards recruiters focusing more on professional practice rather than a piece of paper. Experience and skills are becoming more and more important with every step we take towards this new way of working.”
