Amidst the evolving landscape of talent acquisition, where credentials once held sway, a new paradigm is emerging—one that places skills at the forefront of hiring decisions. At the Tech HR India 2024 conference, a fireside chat brought together distinguished industry leaders to discuss this transformative shift.
Moderated by Pooja Luthra, Group CHRO at Trident Group, India, the session featured insights from Industry leaders Biswaroop Mukherjee, Head HR of Commercial Vehicles at Tata Motors, Abanith Viswam, Global Strategic Sourcing Leader at Amazon, and Pramod Chaganti, Senior VP-Asia at Radancy.
According to LinkedIn’s Future of Recruiting report approximately 8 out of 10 recruiters in the APAC region foresee skills-first hiring becoming the dominant talent acquisition strategy in 2024. The panel explored how employers can effectively tap into previously overlooked talent pools by prioritising candidates based on skills rather than traditional credentials.
The discussion delved into actionable strategies for unlocking potential in a diverse workforce, emphasising the need for a more inclusive and competency-driven approach to hiring.
How skill-based hiring is transforming the talent landscape
The session began with Pooja Luthra questioning what skill-based hiring truly entails. She highlighted the complexities of this approach compared to traditional education-focused methods, noting the revolutionary shift in how hiring priorities are changing.
Biswaroop Mukherjee, Head HR of Tata Motors, then discussed the evolution of skill-based hiring, driven by the digital revolution and technological advancements. He illustrated the need for specialized skills in industries like automotive, stressing that clear role definitions and proficiency levels are crucial for implementing effective skill-based hiring in today’s landscape.
Abanith Viswam, Global Strategic Sourcing Leader at Amazon, echoed the need for a well-defined understanding of the critical skills required for each role as a foundation for skill-based hiring. He emphasised that organisations must be prepared to implement skill-based promotions as a first step, promoting individuals based on their abilities rather than tenure or specific degrees.
Abanith shared his own journey at Amazon, where he transitioned across various roles based on skills rather than traditional qualifications. He highlighted Amazon’s leadership principles-based hiring process, which focuses on evaluating candidates’ experiences in demonstrating these principles, further illustrating how skill-based assessments can drive career growth within an organisation
Adapt employer branding to prioritise skills and attract top talent
Pramod Chaganti explained that job seekers are increasingly searching for opportunities that match specific skills, like “Java jobs” or “skill-based positions in Bangalore.” This shift indicates that job seekers want employers to clearly define the skills required for roles, rather than focusing on traditional titles like “Project Manager.”
He emphasised that employer branding must evolve to meet these expectations. This means rethinking how job descriptions are crafted, ensuring they are skill-focused and optimised for search engines to attract the right candidates.
Additionally, Pramod pointed out the importance of communicating how companies enhance and develop the skills of their employees. He cited a study showing that 61% of candidates are looking for opportunities that offer skill enhancement, underscoring the need for employers to integrate this into their branding and communication strategies.
Skill-based hiring and its impact on employee development
While highlighting how talent acquisition strategies are evolving, Biswaroop Biswas noted that companies like Tata Motors have adapted to focus on skill-based hiring, especially in light of technological disruptions such as the shift from mechanical to electronic systems in the automotive industry.
Biswaroop highlighted a three-pronged approach to navigating these disruptions:
Hiring Industry Experts: Initially, organisations hire experts who are well-versed in the new skills, despite the higher costs, to manage change effectively.
Employee Development: Companies partner with academic institutions to provide specialised training, such as MTech programs, to upskill existing employees.
Campus Recruitment: Focusing on hiring fresh graduates with the necessary skills from relevant disciplines, such as electronics, to build a robust talent pipeline.
Enhancing diversity and addressing blind spots
Pooja then shifted the discussion to diversity in skill-based hiring. Pramod Chaganti argued that skill-based hiring inherently supports diversity by broadening the talent pool beyond industry-specific experience and functional roles. This approach allows organisations to tap into diverse backgrounds and perspectives, including gender diversity, since skills like those used in manufacturing can be transferable across industries.
Adding to this, Abanith highlighted the potential blind spots in skill-based hiring, such as overlooking traits like resilience and the ability to handle the day-to-day challenges of corporate life. He emphasised the importance of balancing skill assessments with an understanding of a candidate’s career journey and their capacity to navigate obstacles.
The conversation concluded with the acknowledgment that while skill-based hiring is becoming increasingly important, it does not replace traditional credentials and education. Instead, it complements them, reflecting the future focus on skills in the evolving job market.