Competence Over Credentials: The Rise of Skills-Based Hiring | BCG and Lightcast

Talent Acquisition
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This article emphasizes the shift many organizations are making toward skills-based hiring. It highlights the advantages of this approach for broadening the talent pool to include self-taught individuals and those who gained their skills through experience rather than solely through academic qualifications. While the article provides many noteworthy trends in skills-based hiring (such as the US leading this shift while other countries like Singapore still heavily emphasize degrees), it also offers examples of how organizations can make this transition. For instance, Goldman Sachs recently adopted a ‘skillset recruiting’ approach, where candidates don’t apply for specific jobs but instead apply to particular skill areas. Through skills testing on the company’s new online platform, relevant job recommendations are made to candidates based on their skills. The authors also mention how organizations can efficiently evaluate candidate skills by considering proxies like micro-credentials, online course completions, recommendations, or project results. Additionally, it highlights how companies are using skills to match internal talent to opportunities such as jobs, projects, and assignments through Internal Talent Marketplaces (ITMs). Regarding ITMs, I’m resharing a recent article, How to Start Smart With a Talent Marketplace, that delves into Booz Allen’s initial year experience in launching an ITM, shedding light on the hurdles faced, strategies applied, and key lessons learned.