The Skill-Based Hiring Model: Should Your Company Move in This Direction?

Increase your talent pool.

Jul 25, 2018

Two or three decades ago, job seekers found good positions without the need for degrees; hiring was based on experiential skills alone. Since then, the employment market has done a one-eighty and hires became solely based on resume credentials.

In today's work space, employers are finding that it's getting more difficult to procure workers with the skills they need (based on resumes received). This presents a problem for employers today as they are unable to fill many open positions. On the same note, many people who are skilled in several areas who can't get interviews because they do not hold a degree. There is a resolve; change your hiring model.

The Markle Foundation's Rework America Task Force has begun a nationwide initiative to bring together industry leaders to modernize the U.S. labor market and create opportunities for job seekers, employees, and businesses. The goal is to redirect employers to lean towards a skill-based hiring model instead of the traditional resume hiring.

Benefits of Skill-based hiring

There is a demand for workers and a supply of talent that you could hire today. Workers who are highly skilled in their fields are desperately needed in the workforce.

The Technology industry was the first to embrace this new method of hiring, in fact, about one-third of new hires at IBM do not have four-year degrees. Other fields are beginning to realize the benefits of the new hiring model. Aside from providing more opportunities for skilled workers, there are also employer benefits.

  • A much larger talent pool for employers
  • Find more, better-qualified candidates
  • Reduce recruiting costs and fill open positions faster
  • Boost retention and employee engagement
  • Requiring degrees eliminates talented people from your search
  • Education is not always a predictor of success

The bottom line is that skills-based hiring will improve your business.

Making The Shift from Degree and Pedigree-Based

For companies interested in making this shift, there is a different way of handling the hiring this type of hiring process starting with the job posting. Planning will also be an integral part of this model as well.


Skillful is a workforce development initiative that the Markle Foundation launched in 2016. This New York-based non-profit organization offers help to companies seeking to switch their hiring processes to a more skill-based method. They can provide training and education to human resource professionals.

Executives who have embraced this new strategy have noted single-digit turnover, lower salaries to pay and reduced hiring costs.

eMoney wealth management used this approach to hire 30 people and noted a broader and more diverse talent pool bringing an eclectic mix of life experiences and ways of thinking.

Next Steps

If your company needs to fill positions, and you feel that you'd like to test the waters, Skillful has a start to finish process on their site along with how to's and templates.

This is the type of process that takes time and needs careful planning, but it could be well worth it in the long run.

Building a congenial diverse workforce begins with the hiring process. Lofton Staffing and its various branches provides companies with the necessary resources. We bring the responsive service and flexibility of a small local firm while having the technology, resources, and infrastructure to deliver the benefits of the biggest players in our industry. Contact us today and build a winning, diverse team.






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