Skills-Based Hiring in IT: How to Do it Right

Skills-based hiring practices, using objective methods for interviewing and assessing candidates, helps employers ensure that new hires possess the skills needed to succeed on day one. The goal is to focus on vetting candidates based on skills instead of more subjective, and potentially biased, criteria. 

Embracing the idea that learning is primarily an experiential process is at the core of the skills-based approach, says Jeanne Cordisco, chief people officer at learning and training firm O'Reilly, in an email interview. "With rapid advancements in technology creating radical shifts in job opportunities, employers are increasingly seeking individuals with specialized skills." 

Skills-based hiring should be an important component in any organization's IT recruiting strategy, says Mindy Walter, senior recruiting lead, growth platforms, at consulting firm Accenture Federal Services. "With the market competition for top tech talent, it's crucial to focus on identifying and attracting the best candidates based on their skills and competencies rather than traditional degree requirements," she advises via email. "Skills-based hiring allows the development and growth of diverse candidate pools, providing a competitive advantage and enabling organizations to fill open roles faster than ever before." 

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Skills-based hiring allows employers to easily and more accurately recruit candidates who have specific skills, AI or otherwise, and to better assess how equipped they are for an open role, says Paul Farnsworth, CTO at career website Dice, in an online interview. "It also ensures that companies are hiring candidates who already meet the position’s specific requirements, resulting in less time spent onboarding and training, and [creating] more productivity sooner." 

A growing number of enterprises are now hiring new talent based on applicants' skills or ability to learn quickly, as compared to their educational background or previous work experience, Cordisco says. "Skill-based hiring allows employers to acquire talent and provide them with opportunities to develop their skills in the workplace through practice and application, bypassing traditional post-secondary education." 

Getting Started 

The best way to approach skills-based hiring is by promoting a skills-first organizational culture, Walter says. She notes that skills-based hiring requires thoughtful planning to ensure there are established and diverse talent pipelines, defining skills-focused job requirements and technical assessments, and an interview process that includes both skill- and behavioral-based interviews. 

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Defining core competencies and skills should be the first step in establishing guidelines for skill-based hiring, Walter says. "Leveraging guidelines to create standard assessments and clear job descriptions, along with training and continuous learning, is needed to ensure success," she states. "Create policies outlining the hiring process and ensure compliance with applicable federal regulations," Walter advises. "Consider implementing feedback tools and performance metrics to track effectiveness of the hiring approach." 

Employers considering a skills-based hiring approach should start by identifying the technical skills and competencies needed and consulting with the manager who's looking to add one or more team members, Farnsworth says. The next step should be developing objective assessments, such coding challenges, AI model-building tasks, or system design problems. "These can provide a clearer picture of a candidate's skills and abilities, more than any resume or interview ever could," he explains. "Assessments should also be regularly evaluated by hiring teams to ensure that they are up to date." Platforms that specialize in technical assessments, such as HackerRank or LeetCode, can also be a useful resource, Farnsworth notes. 

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Cordisco believes that gaining a comprehensive understanding of existing talent and resources is essential. "Assess gaps in competencies and skills and help formulate a plan with HR and learning and development teams to understand where there’s a need to hire externally." She adds that it's also important to understand that hiring skilled talent alone isn't enough. Investing in the ongoing development of employees is necessary to keep pace with changing industry demands and maintain a competitive edge. "By prioritizing a culture that encourages continuous learning and improvement, organizations can create a more engaged and motivated workforce." 

Bias and Risk 

One significant challenge with skills-based hiring is the risk of bias in candidate assessments. "Even objective skills tests can inadvertently include cultural or gender biases, which can put certain groups of candidates at a disadvantage," Farnsworth warns. "Assessments that are fair and inclusive will help you create a diverse team." 

Another potential pitfall is overlooking important attributes that lie beyond skills, such as a candidate's ability to learn quickly and adapt to job requirements. "Employers must promote a culture of continuous learning and development, empowering employees to balance technical competencies with essential attributes like communication and adaptability," Cordisco says. "Fostering this balance helps ensure exceptional staffing choices while allowing employees to stay relevant in their continuously evolving industry." 

A Wider Pool 

Skills-based hiring doesn't just help employers -- it also benefits job candidates, Farnsworth says. "The approach opens job opportunities to a wider pool of professionals, including candidates who have non-traditional educational backgrounds, such as gaining skills through coding boot camps or online courses." 

Having unique credentials and applicable skillsets can help set non-traditional job candidates apart from the crowd in a good way, while helping employers increase productivity and improve business outcomes, Farnsworth notes. "It's a win-win across the board."