What does it mean to be a Skills-Based Organization? Ericsson's example

Sources: Ericsson 2023, The conference board: The Long but Rewarding Journey to Becoming a Skills-Driven Organization

Want to learn more about Skills-Based Hiring and other innovative TA practices? Check out our "Archive TA Greatness eBook"

#skillsbasedhiring #interviewintelligence #informedecisions

How did Ericsson make the business case for a Skills-Based Organization by aligning global trends with internal pain points?

Sources: Ericsson 2023, The conference board: The Long but Rewarding Journey to Becoming a Skills-Driven Organization

Want to learn more about Skills-Based Hiring and other innovative TA practices? Check out our "Archive TA Greatness eBook"

#skillsbasedhiring #informedecisions

Skills-Based Hiring at Goldman Sachs

Recently, Goldman Sachs has transitioned to a recruitment strategy they refer to as "skillset recruiting." In this new method, the company utilizes an online platform where applicants don't apply for specific job roles; instead, they apply based on particular skill areas. After this, candidates undergo skill assessments and are then recommended for jobs that best align with their demonstrated skillsets.

Want to get started with Skills-Based Hiring? Checkout our checklist below:

Skills-Based Hiring Checklist https://informedecisions.io/ebooks-and-guides/skills-based-hiring-the-checklist/

#skillsbasedhiring #interviewintelligence #informedecisions

BCG on Skills-Based Hiring

"In the ensuing tug-of-war for skilled individuals, organizations must rethink their approach to recruitment.

They must widen their recruitment lens to capture the diverse skills and experiences of a changing workforce.

They need to shift from “degree and pedigree” to “will and skill.”

By embracing skills-based hiring, they will tear down the paper ceiling that has kept individuals without degrees from entering certain occupations and advancing once there."

Source: BCG report: Competence Over Credentials: The Rise of Skills-Based Hiring

Want to get started with Skills-Based Hiring? Checkout our checklist on the 1st comment

#skillsbasedhiring #informedecisions

Skills-Based Hiring Checklist https://informedecisions.io/ebooks-and-guides/skills-based-hiring-the-checklist/

TOP KPIS TO MEASURE POST-IMPLEMENTING SKILLS-BASED HIRING

1. Quality of hire before and after the implementation of skills-based hiring.

2. Diversity of hire before and after the implementation of skills-based hiring.

3. Top skills among new hires.

4. Skills to be developed among new hires.

#skillsbasedhiring #dei #informedecisions

WHY IS SKILLS-BASED HIRING PIVOTAL FOR DIVERSIFYING YOUR WORKFORCE?

Skills-based hiring offers a powerful approach to diversifying the workforce by
looking beyond traditional measures such as experience, education, and other
credentials. Instead, it focuses on assessing a candidate's specific skills and
abilities that are relevant to the job at hand. By adopting this approach, you can
provide opportunities to individuals who may have acquired skills through
alternative pathways or non-traditional backgrounds. This opens doors for
candidates who may have faced systemic barriers or lacked access to traditional
educational resources.

#skillsbasedhiring #dei #informedecisions

HOW IS SKILLS-BASED HIRING MORE INCLUSIVE THAN TRADITIONAL HIRINGING - A REAL-LIFE EXAMPLE

Imagine you are hiring for a sales position. With the traditional hiring approach you would say: “Let’s hire people with a degree in Business Administration a previous experience in sales. If they are coming from an Ivy League school or a well-known organization, that’s even better”. With the skills-based hiring approach, y would say: “Let’s review candidates from various positions that require excellent communication, working with targets, and independence. Where they studied and previously worked really doesn't matter, as long as they have the relevant skills''. By using a skill-based approach, you can open the position to many more candidates from various positions such as recruitment, admin, marketing, operations, and more. You also open your pipeline to candidates who did not have the privilege or opportunity to study or learn at well-known institutions.

#skillsbasedhiring #dei #informedecisions

WHAT SKILLS CAN YOU LEARN ABOUT FROM A CANDIDATE’S QUESTIONS IN AN INTERVIEW?

Welcome to the second post in our series.

The second skill we will discuss is critical thinking: Does the candidate have the ability to ask critical questions, look at things from different perspectives, play the "devil's advocate," and conduct meaningful analysis to make informed decisions?

Questions indicating high critical thinking:

  1. Asks deep or challenging questions about the information provided. For example: if you mention a culture of teamwork and collaboration, the candidate might ask, "How does that manifest in day-to-day operations?"
  2. When presented with a professional or technical challenge, asks follow-up questions to deepen their understanding of the information provided.
  3. Able to respectfully disagree with the interviewer. For instance, if the interviewer states, "We believe satisfying customers means giving them what they want," the candidate might respond, "Based on my experience, sometimes customers don't know what they want. Do you agree?"

Questions indicating low critical thinking:

  1. Asking generic questions easily found on the web, such as "Tell me about your culture."
  2. Repeating or reconfirming information already covered in the interview process or readily available in the job description, such as asking about the salary range or work model.
  3. Not asking any questions and simply repeating or confirming what the interviewer said, such as saying, "I really like your customer-centric approach."

DO YOU AGREE WITH THIS CEO’S HIRING PRACTICE? INFORMED DECISIONS TAKE

Thanks to everyone who participated in our survey (link to survey results in 1st comment).

Here is a reminder of the CEO’s interview practice:
"I've been a CEO for over 2 years and I've finally cracked the code on hiring.
I look for just 3 things:
• Character
• Attitude
• Reliability
Anything else can be trained."

And here is our take on it…
We respectfully disagree with the CEO for 2 reasons:
1. Too broad definitions - what are “character” and “attitude” exactly? what do they contain? Imagine telling your recruiters or hiring managers to hire for great character and a positive attitude- you can be 100% sure that each of them will interpret this differently. In order to hire with accuracy we need to clearly define what are we looking for in terms of traits, behaviors, values and motivation. Broad definitions will just lead to people making their on subjective judgments and biases.

2. You should definitely hire for skills — although skills can be taught, some, particularly human skills (also known as “soft skills”) such as effective communication, emotional intelligence, and servant leadership. require considerable time to develop. When recruiting for a position, our goal is to efficiently onboard new hires and optimize the return on investment.

However, this does not imply that we exclusively seek out "perfect" candidates (if such individuals even exist). On the contrary, the skills-based approach to hiring encourages leaving our preconceived notions on what is the relevant experience and education at the door and to assess candidates on obtaining the relevant skills for the position.

DO YOU AGREE WITH THIS CEO’S INTERVIEW PRACTICE

Here is a quote from a CEO of a successful startup about the way he made a decision about a candidate during an interview. Tell us if you agree with this practice and share your thoughts in the comments.

”There was once a candidate I interviewed for a Junior Sales Development Representative position. During the interview I asked him to tell me about something he is great at. He said he is good at FIFA. I asked: “how good”, he replied “real good”. We went to the lounge, all the company is standing behind us, we went head to head and he tore me apart. We immediately signed him. If I would have found out that he doesn't know how to play, I wouldn't have signed him. If a person tells me that he likes to travel in Europe but then can’t mention names of European countries, then he is just making things up”.