Skills-Based Hiring: Getting Creative Before, After, and During the Hiring Process
Over the past couple of weeks, we’ve explored and examined the world of skills-based hiring, specifically within the hospitality industry.
In the first part of our series, we provided an overview of the skills-based approach with comparisons to the recruiting strategy of a leading Ivy League school. In part two, we unveiled reasons why this approach has failed for companies in the past and consequently, offered 2 concrete places to start successfully integrating these hiring strategies.
In this final portion, we’ll wrap things up by offering innovative changes to your application process as well as introducing strategies for retaining talent post-hire.
We’ll cover:
- Creative ways to evaluate candidates’ skills before the interview
- How to support your talent post-hire to avoid costly turnover
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As outlined in the second part of this series, one barrier to removing degree requirements is the degree of risk. Without a college education, how can you be sure candidates are qualified?
The answer: Put their skills to the test.
Skills Assessments & Projects
Like standardized tests, skills assessments are an effective way to level the playing field, regardless of formal education. By having all candidates complete the same assessments or projects, you can evaluate their practical knowledge and skills before making a hiring decision.
For example, if you’re hiring a bartender, you might include a quiz in the application that tests their knowledge of drink recipes and customer interaction scenarios. This approach allows you to screen candidates effectively before the in-person interview, letting you focus on whether the applicant is the right culture fit.
For higher-level positions, consider incorporating projects into the application process. If you’re hiring a Marketing Associate, ask candidates to create a strategic plan for a hypothetical client. In the same way, this task lets you assess their skills and expertise before the interview so that you can turn your attention to suitability.
A word of caution, though. When incorporating skills assessments, it’s crucial to ensure that what you’re asking of applicants is a fair evaluation of their abilities. Avoid over-assessing to the point where candidates are tested on tasks they could easily learn later. The goal is to get a baseline understanding of whether they have the foundational skills needed to succeed in the role from the start.
While these assessments are a great way to make sure that a candidate can succeed from day one, further education or training may be necessary depending on your goals for their success in the role for the future.
Professional Development Training & Sponsoring Further Education
Why should you care about keeping your employees when you can fill their spot if they quit or have to be terminated?
Answer: Because it costs you too much time and money.
Turnover is a significant challenge in any industry, but it’s particularly severe in hospitality. According to the Bureau of Labor Statistics, the average turnover rate in the hospitality industry is 73.8%, annually. This high rate not only disrupts operations but also results in substantial costs.
When you lose an employee, you’re not just down a person. The price of losing an employee can include: advertising, screening, and hiring a replacement; loss of productivity in the meantime due to slowed production and errors; the cost of training a new employee; and more. Overall, losing a salaried or hourly worker can cost a business thousands of dollars to find someone new. Thus, to avoid turnover in any capacity, it’s important to put as much time into talent management as you do talent recruitment.
It’s no surprise that employees benefit from professional development training, but the statistics show that companies see positive results as well. Forbes reports that organizations with comprehensive professional development training, (i.e., leadership workshops, skills enhancement activities, educational seminars, re-training on areas of struggle, etc), yield 218% higher income per employee as well as a 24% higher profit margin overall.
In addition to professional development and training, other educational benefits such as sponsored education and tuition reimbursement are in high demand. A 2022 study found that 80% of workers would be more loyal to a company that invests in their education, and 79% would be more willing to stay in their current position if the organization supported these opportunities.
With continued support for your skills-based hires – and employees as a whole – you will see increased employee retention and loyalty. The numbers don’t lie, the more supportive you are of growing alongside your employees, the less money you’ll lose and the less turnover you’ll see.
Skills vs. Degrees Series In Summary
Switching to a skills-based hiring model requires thoughtful implementation. The benefits are far beyond what we have discussed in our three part series, but seeing the fruit of those benefits takes time. With any large-scale change, there’s a tendency to lose hope when you don’t see immediate results. Our advice is to be patient and keep at it.
The truth is, the strategies that many companies use in their hiring practices favor degrees over skills, deeming many technically qualified candidates unfit for consideration. With over 62% of the U.S. working population lacking a four-year degree, there’s an incredible amount of talent out there that could be the perfect fit for your company.
It may seem unorthodox, but hiring for skills is here to stay. Embrace this change and revolutionize the way you hire in 2024 and beyond.
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About LGC
Since 2003 LGC has been building connections between businesses with staffing needs and job seekers looking for new opportunities. Our range of solutions includes temporary and permanent placements (and everything in between) for a variety of industries. With offices located nationwide, we can tap into a dynamic pool of talented professionals. We have a passion for creating partnerships that last and work hard every day to ensure both clients and candidates reach their employment goals.