Posts

Skills-Based Hiring: The Future of Recruitment Is Already Here

in /by

In today’s rapidly evolving job market, traditional hiring practices that rely heavily on degrees and years of experience are quickly becoming outdated. Instead, forward-thinking companies are embracing a more effective approach: skills-based hiring. At ExactHire, we’re helping organizations transform their recruitment processes through this revolutionary method that focuses on what candidates can actually do, rather than just their credentials.

What Is Skills-Based Hiring?

Skills-based hiring is a recruitment approach that prioritizes a candidate’s specific abilities, competencies, and demonstrated skills over traditional qualifications like education and work history. Rather than just using degrees as a primary filter, this method assesses candidates based on their ability to perform the actual tasks required for the role.

This shift isn’t just a trend—it’s quickly becoming the standard. According to TestGorilla’s State of Skills-Based Hiring 2024 Report, 81% of employers are using some form of skills-based hiring in 2024, with 95% agreeing it will be the dominant recruitment method moving forward[1].

Why Skills-Based Hiring Matters Now More Than Ever

1. Addressing the Talent Shortage

With talent scarcity affecting most industries, companies can no longer afford to limit their candidate pools. Degree requirements alone can eliminate up to 62% of potential candidates, including many qualified individuals who gained their skills through alternative routes, according to a CNBC report on skills-based hiring trends[2].

2. Building Diverse, High-Performing Teams

Skills-based hiring naturally promotes diversity by removing barriers that have historically disadvantaged certain groups. This approach evaluates candidates on merit rather than credentials, creating more equitable opportunities for all qualified individuals regardless of their background.

3. Improving Retention and Performance

Research shows that employees hired through skills-based methods tend to stay in their roles longer. A Harvard Business School study found that when companies dropped degree requirements, those employees remained in their positions 20% longer than their college-educated counterparts[3]—contributing to greater organizational stability and reduced hiring costs.

4. Meeting Evolving Business Needs

As technology and business practices evolve, the half-life of skills continues to shorten. Organizations need employees who can adapt and learn new skills quickly. Skills-based hiring helps identify candidates with the right mix of current abilities and learning potential to thrive in dynamic environments.

How ExactHire Can Help

At ExactHire, we understand that transitioning to a skills-based approach requires the right support. We offer comprehensive solutions to help organizations implement best practices in skills-based hiring. Our approach includes customizable tools to assess and evaluate candidate skills effectively, along with expert guidance in creating skills-focused job descriptions. We provide strategic approaches to reach more diverse, qualified candidates while ensuring an efficient hiring process. Through detailed analytics, we help you measure the effectiveness of your skills-based hiring process, while our training resources ensure your team can evaluate skills consistently across all candidates.

We combine technology and expertise to help you transform your hiring process, ensuring you can identify and attract candidates with the right skills for your organization’s needs.

The Future of Hiring Is Skills-Based

As the business landscape continues to evolve at an unprecedented pace, the need for skilled, adaptable talent will only grow. Forward-thinking organizations are already shifting away from credential-based hiring toward more effective skills-based approaches.

At ExactHire, we’re committed to helping you navigate this transition with the right tools, expertise, and support. By implementing skills-based hiring practices now, you’ll build a more diverse, capable, and resilient workforce ready to meet whatever challenges the future brings.

Ready to transform your hiring process? Contact ExactHire today to learn how our skills-based hiring solutions can help you find the talent your organization needs to thrive.

Sources:

[1] TestGorilla. (2024). The State of Skills-Based Hiring 2024. https://www.testgorilla.com/skills-based-hiring/state-of-skills-based-hiring-2024/
[2] CNBC. (2024, May 31). How to get a job in the ‘skills-based hiring’ trend. https://www.cnbc.com/2024/05/31/how-to-get-a-job-in-the-skills-based-hiring-trend.html
[3] Indeed. (2024). A Beginner’s Guide to Skills-First Hiring. https://www.indeed.com/lead/a-beginners-guide-to-skills-first-hiring

The Power of a Shorter Job Application

in /by

When it comes to attracting top talent, the application process can make or break your success. A long, complex application can drive away potential candidates, leading to a smaller and less qualified talent pool. In contrast, a streamlined application encourages more applicants to complete the process, increasing your chances of finding the perfect hire.

Lengthy Job Applications Create Higher Application Drop-Off Rates

Research indicates that lengthy job applications can deter potential candidates. For instance, Indeed found that applications with 20 screener questions result in a 40% candidate drop-off rate, with higher abandonment rates as the number of questions increases.

Additionally, other studies revealed that 60% of job seekers abandon applications they perceive as too lengthy or complex.

This suggests that extensive applications may lead to missed opportunities to connect with qualified talent.

Consider this

A typical candidate spends hours crafting a resume and cover letter. When faced with an application that requires duplicating this effort by answering dozens of questions, many will abandon the process altogether. For organizations, this means missed opportunities to connect with qualified talent.

A high drop-off rate is more than just a lost application; it’s a signal that your hiring process might be turning candidates away. And in today’s competitive job market, every missed application counts.

Why Shorter Applications Work

Shorter applications address two critical pain points for candidates:

  1. Time: Applicants value their time and are more likely to complete an application that respects it.
  2. Clarity: A concise application feels approachable, reducing the intimidation factor of a lengthy form.

By removing unnecessary barriers, you create an inviting entry point for candidates, increasing the number of completed applications and improving the diversity and quality of your applicant pool.

ExactHire Solves the Problem

This is where ExactHire’s Applicant Tracking Software (ATS) comes in. We designed our ATS to help employers create optimized, candidate-friendly applications.

  • Customize application forms: Tailor questions to gather only the most essential information upfront.
  • Use pre-screening tools: Automate the qualification process with custom filters and screening questions, so you don’t sacrifice quality for quantity.
  • Multi Step Applications: Use ExactHire Multiple Step Applications to collect the information you need to make a decision. Then get the rest of the information at a later point in time. 

ExactHire’s ATS allows you to strike the perfect balance between gathering essential information and keeping the application concise, ensuring you attract and retain the right candidates.

Why Choose ExactHire as your ATS?

Choosing our ATS isn’t just about reducing drop-offs; it’s about transforming your hiring process into a competitive advantage. By leveraging our intuitive tools, you can:

  • Increase applicant volume without sacrificing quality.
  • Save time by reviewing qualified candidates.
  • Enhance the candidate experience, boosting your employer brand.
  • and more.

In a market where the best talent moves fast, your application process should never be a bottleneck. Let our ATS help you create an application experience that works for everyone.