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IT Leadership & the Strategic CIO

5 MIN READ

Commentary



CRACKING THE CODE FOR SKILLS-BASED HIRING

One reason skills-based hiring has been slow to take hold is that employers,
particularly in tech, don’t always understand how to put it into practice. Here
are three ways to get started.
Kelcey Reed
Chief Technology Officer, Opportunity@Work
Mohan Reddy
Chief Technology Officer, SkyHive
October 19, 2022
Credit: Pixabay
PDF


As employers grapple with the impact of an ongoing "Great Reshuffle" and
accelerating momentum for educational pathways outside of college, skills-based
approaches to hiring are becoming increasingly popular.



Recent research indicates that a growing number of employers are removing
college degree requirements from job posti ngs, especially in IT and managerial
roles, and embracing other methods of determining job readiness. Now, state
leaders are following suit, with Maryland Governor Larry Hogan’s recent decision
to remove the college degree requirement for thousands of public-sector jobs,
and to intentionally focus on hiring workers who are Skilled Through Alternative
Routes (STARs).

But the bachelor’s degree still has a powerful hold on many employers’ hiring
practices. As many as 19 million STARs remain locked out of job opportunities
because of the “paper ceiling” -- the invisible barrier that comes at every turn
for workers without a bachelor's degree – despite having the skills to succeed
in those jobs. Even some of the most vocal employers that are supportive of new
approaches to hiring still have a long way to go when it comes to prioritizing
skills in their own recruitment processes.

What’s the reason for this reticence to adopt skills-based hiring? Our
experience suggests that while there’s a lot of enthusiasm for the model in
theory, it’s not easy to translate into practice. Based on our work building a
hiring platform that uses skills-based methods to facilitate hiring STARs, and
here are three considerations for businesses that are excited about the
potential of skills-based hiring, but not sure how to make the leap.




1. Identify where technology can help -- and where it can’t

Sifting through hundreds of candidates is already time-consuming enough for a
hiring manager. Reviewing dozens of individual skills to match them to a job
would overwhelm anyone. The good news is that artificial intelligence (AI) and
other emerging technologies can do the hard parts for us. However, this still
requires finding the right balance – identifying exactly which of those hard
parts should be handled by technology, and which require a human element.

AI tools can now analyze massive amounts of labor market data to help
understand, for example, how a given occupation can map to a skill set. But the
best approaches to skills-based hiring are intentional about how they’re using
technology; it works best when supported by human experts. Use analytical tools
to be more efficient with tedious tasks, like identifying the right skills and
surfacing qualified candidates. However, don’t let them replace people or become
an automatic filtering mechanism. Hiring managers and talent leaders must be
trained on the need for skills-based hiring and on how to thoughtfully
incorporate it into their candidate evaluations.

2. Know what’s in your algorithms and watch out for bias



Using technology for skills-based hiring can take some of the burden off hiring
managers by doing the hard work of matching the skills of candidates to those
required for roles. Stellarworx, the STARs hiring platform we’ve worked together
to develop, captures trillions of unique skill combinations from a variety of
real-world sources across industries and experience levels. It then uses machine
learning to identify which skills historically led to the most successful job
transitions. This helps hiring managers and jobseekers understand the skill
requirements of a given role more completely than a traditional job description.

With any AI-driven process there is the risk of bias -- a risk more acute in an
industry with a history of discriminatory practices. Many skills-based hiring
algorithms use historical job transitions as a data source. But, that data often
reflects employers’ degree preferences, so it’s easy for algorithms to
perpetuate the very disparities that skills-based hiring is trying to address.
The best way to attack this challenge is a combination of data practices and
people practices. Skills-based hiring algorithms should leave out protected
characteristics like age, race, ethnicity, and gender, which are known to
introduce bias. But any data without context can lead to bias, so be sure to
apply both mathematical analysis and human judgment to evaluate the model for
bias.

3. Set explicit goals and measure success

Two factors can spell doom for any technology investment: They are a lack of
clarity around what the investment should yield, and a failure to remove
barriers and empower people to make use of the technology.

To see your investment in skills-based hiring pay off requires many groups
working together, top to bottom. It takes executive leadership to set the
vision, to incentivize progress toward milestones and hold the organization
accountable, and most importantly, to give explicit permission to hire based on
skills instead of just degrees. It also requires engaging practitioners to
refine and tailor job descriptions to focus on specific skills -- leaning on
technology to establish a baseline and fill gaps where appropriate. With that
level of support, talent leaders can then intentionally screen in STARs and look
for specific skills among their pools of applicants.

When employers and workers alike put these ideas into practice, the impact can
be transformative. Consider the case of Thomas, a STAR who spent nearly two
decades in plumbing before using Stellarworx to find a job as an IT Support
Coordinator at a Los Angeles-based entertainment company. Because the platform
recognized the communication and collaboration skills he’d developed on the job,
along with the coding skills he’d gained from a tech bootcamp, he found a job
that suited both his interests and his abilities.

Emerging technologies are making skills-based hiring, once a pie-in-the-sky
policy idea, into a reality for employers and workers alike. While questions
about both the technology and the methodology -- from confusion about how it
works, to concern about the risk of discrimination -- will always come up, the
good news is that we now have the experience and evidence to answer them. We
hope those answers can help more employers take the steps toward implementing
this promising practice -- and building a stronger and more equitable labor
market in the process.

Team Building & Staffing
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