In today’s competitive job market, university degrees are often considered a benchmark for measuring an individual’s knowledge and competence. However, the trend of skill-based hiring is gaining momentum, and many organizations are moving towards skill-based hiring and putting less emphasis on degrees when evaluating candidates. The World Economic Forum has backed up this idea, stating that skills, not degrees, will shape the future of work. This opens the door for talent with non-traditional backgrounds to start and grow their careers in critical sectors such as healthcare, manufacturing, and technology.
India’s unemployment rate is a significant concern, and skill-based hiring could help to solve this problem. One of the primary reasons why India should consider skill-based hiring is that it can help address the mismatch between job seekers’ skills and employers’ requirements.
Many young people in India are pursuing degrees in fields that do not align with the job market’s needs, leading to a skills gap that makes it difficult for employers to find suitable candidates for their job openings. Even the skills a professional acquired barely a few years ago may not be so much in tune with the changing workplace needs now. This creates a situation where there are many university degree holders, but only a few have the necessary skills and experience to fill the available job openings.
Benefits of skill-based hiring
Skill-based hiring prioritizes candidates’ competencies over their educational qualifications. By focusing on skills and experience rather than just degrees, employers can find candidates with the specific skills needed for the job, leading to more successful hires and reduced employee turnover.
Moreover, skill-based hiring could help to reduce unemployment rates in India by creating more job opportunities for individuals who possess the necessary skills but not necessarily a college degree. This would create a more inclusive job market and help to promote economic growth and development.
Finally, skill-based hiring can lead to a more cost-effective hiring process. It eliminates the need for lengthy degree-based qualifications screening, which can be time-consuming and expensive. Instead, organizations can design a hiring process focusing on the skills and competencies needed for the job and assess candidates based on their performance in relevant assessments, simulations, or practical exercises.
Beyond hiring
Moving towards skill-based hiring is just one piece of the puzzle to fighting unemployment. For organizations in India, skills should be prioritized during the hiring process and throughout an employee’s entire tenure within a company, from onboarding to promotion. According to Skillsoft’s recent IT Skills and Salary Report, employee retention and recruitment top the list of challenges facing leaders today. Therefore, investing in training can demonstrate an organization’s commitment to its people. For example, anyone who decides to work in a technology role implicitly agrees to become a lifelong learner, given the constant and rapid pace of tech innovation. So, organizations need to commit similarly to their tech staff and provide the learning opportunities necessary for a successful career.
To do this, organizations should put infrastructures in place to support and train new hires on the job while investing in upskilling and reskilling initiatives to tap an overlooked source of talent—their existing employees. Comparatively, upskilling or reskilling is a much smaller investment for a company than recruiting, hiring, and training a new employee.
Upskilling and reskilling employees does more than boost a company’s bottom line — it creates a happier workforce. It improves retention, attracts new talent, helps employees see a path to career advancement, and gets them excited about new possibilities. In addition, employees who invest in learning and skill-building are more likely to stay updated with industry trends, make better recommendations, and offer keener insights to clients and prospects. Overall, this is a win-win for organizations and their employees, with more than half of IT professionals reporting an increase in their quality of work as a result of training.
In conclusion, skill-based hiring could be an effective solution to address the unemployment crisis in India. By prioritizing skills over degrees, employers in India can find candidates with the specific skills needed for the job, create more job opportunities for individuals lacking a college degree, and promote economic growth and development. However, organizations cannot just hire their way out of the problem; they must also invest in upskilling and reskilling their existing employees to address the constantly evolving skills landscape.
(This article is written by Krishna Prasad, Senior HR Director, Skillsoft, and the views expressed in this article are his own)
