Hiring for Skill and Culture in Today’s Job Market

The hiring world constantly evolves as new trends emerge to attract and retain talent. But how can small businesses discern which best practices to follow as they grow their team? Let’s explore the recent trend of skill-based hiring.

What’s Skill-Based Hiring?

Employers are moving away from traditional hiring criteria focused solely on background, experience, and knowledge. Instead, there’s a growing emphasis on finding candidates with the necessary skills who align with the company’s culture. It’s a shift from education to skills and from credentials to culture.

Why the Shift?

The job market has been tumultuous in recent years due to the pandemic, inflation, and other factors. As a result, there have been more job openings than available labor. We’re seeing individuals explore new industries rather than staying within a single sector, leading to a change in hiring priorities. This reflects a realization that a candidate’s skills, competency, and cultural fit or add can be just as important–or even more important–than their years of experience or credentials.

Some are calling this the start of a “skills-first” revolution. New and emerging technologies require employees to constantly upskill and reskill, making college degrees or past experiences less relevant than in the past. According to a report from Indeed that looked at educational requirements in U.S. job listings since January 2019, formal educational requirements have dropped significantly. This new skills-based mindset applies to current employees as well as new hires. Discover ways you can empower your team to grow their skills.

Positives of Hiring for Skill and Culture

Embracing this trend offers numerous benefits for employees and employers alike. Employees who click with the company’s mission and vision tend to be more engaged, productive, and loyal. When you hire based on outlook and potential, you can teach new hires and shape them to best fit the role. Consider each new hire a culture “addition” – someone who brings unique perspectives and enhances your organization’s dynamics.

Skills-first hiring also presents an opportunity for inclusivity and diversity within your workforce. This approach may open doors to candidates who you may not be able to reach through certain education or experience requirements.

Before you hire, are you certain that your stated culture is your company’s actual culture? Read more on how to avoid the common culture trap that creates a revolving door of talent.

Challenges to Consider

While hiring based on skill and culture has significant merits, there can be some obstacles. This hiring trend requires:

• Thoughtful approach
• Strong HR infrastructure
• Clear awareness

One consideration is that these hires may need more guidance and support. Does your team have adequate resources and time for the necessary training and mentorship?

These new hires may take more time and financial investment upfront, which can be worth it but challenging if your team needs someone who can jump right into work. Be sure to communicate with your team, especially managers, about what they need in the role. Consider your company’s onboarding process and whether it accommodates this kind of hire and includes ways to set a new employee up for success.

Four Steps for Effective Hiring

As you navigate your hiring journey, remember to focus not just on resumes and credentials but on the individual behind them. Embrace diversity of thought and experience, and watch your company culture flourish. Try these four tips to give your hiring strategy a boost.

• Develop a Strong Job Description: This sets the foundation of your hiring process. Prioritize a clear and comprehensive job description over posting something with too many buzzwords. Clearly outline the skills and attributes you seek in candidates.
• Craft Tailored Job Postings: Align your postings with the job description, but take it a step further in the job listing. Talk about more than the job description but also the company and its culture; the type of person who would thrive in this role; and expectations for a new hire.
• Formulate Interview Questions: Design interview questions that dive into skill sets and cultural alignment, allowing you to assess a candidate’s potential accurately. Think about questions that don’t focus on just their resume but can encompass who they are as a person and what they bring to the table.
• Manage Expectations: Level-set expectations for the first days, weeks, and months so everyone is on the same page. Make sure managers know what skills the new hire is bringing to the table and where they might need more support. Encourage open dialogue about the process so everyone is aligned and supported. Monitor performance based on what was in the job description, instead of past expectations or employees.

Hiring for skill and culture represents a shift in recruitment strategies, but it can boost your team’s morale and productivity if you approach it the right way. Prioritize cultural addition and skills so your small business can build a team that thrives in today’s competitive landscape. While challenges exist, the investment in fostering a culture-aligned workforce yields long-term benefits for organizational success.

Interested in other current employment trends? Click the link to view the recent blog: What to Do When Compliance Disrupts Your Small Business Culture or check back for more on human resources, payroll, insurance, and benefits.