Why are skill-based assessments better than traditional recruitment methods - blog image

Why are Skill-Based Assessments better than Traditional Recruitment Methods? 

Anjali Saini on March 27, 2024 in Insights

Key Highlights:

  • Skill-based hiring is the modern-day recruitment method for candidates based on their soft and technical skills.
  • Hiring candidates based on their skills can improve job performance, aligning with their job role.
  • HRs focusing on skill-based hiring through Jobsoid paves the way for diligent hires, thereby saving money.

As a talent or hiring manager, you should know all the potential trends in the hiring industry. One major trend that is taking over others is skill-based hiring. According to NACE, around 80% of candidates prioritize problem-solving skills when hiring new candidates.

As recruiters shift their focus to skill-based recruiting, should you not opt for it, too? Consider a skill-based assessment to understand whether the candidate is the right fit. Let’s look at what a skilled-based assessment is and how it is better than traditional recruitment methods.

What is skills-based recruiting?

Skill-based recruiting is the process of talent acquisition in which the candidate’s technical and soft skills are evaluated. In this type of hiring, the systematic focus is laid on the candidate’s skills rather than past work experiences or academic degrees.

This is one of the modern recruiting methods that sets goals and assesses whether the particular candidate can comply with them or not. Since skill-based assessments are given, candidates are less likely to lie about a particular position.

Why is skills-based hiring the future of recruitment?

Skill-based hiring is said to be 5x more effective than education-based hiring or any other traditional recruitment method. Moreover, it’s also 2x more predictive than past experiences.

As the focus is on skills, some of the significant ways in which competency-based hiring can help include:

  1. Promotes unbiased decision-making

    Often, there have been a lot of complaints regarding hiring, stating that people from particular institutes are given more preferences. However, when you opt for skill-based hiring, it reduces the risk of unbiased decisions as the candidates who have the most potential and are fit for the particular job role are hired.

  2. Improves diversity in recruiting

    By removing the need for an education degree for hiring, you get to expand and get access to a diverse talent pool. When focusing on the individual’s skills, you’re trying to understand how soon and effectively they can get the job done.

    As a result, with skill-based hiring, you get to hire candidates who have different skills from each other.

  3. Predicts job performance

    When you hire individuals based on their skills, you can identify the candidate’s job performance. This plays a vital role in ensuring that a particular individual can get their job done.

    Skill-based recruiting paves the way for getting a grasp of the technical and soft skills of the individual. This helps identify the candidate’s key strengths and whether they match your job requirements.

  4. Helps in better retention

    When you don’t have to indulge in education-based hiring, you can broaden your talent pool and increase retention at the workplace.

    When you opt for skill-based hiring, it allows your candidates to trust you. They feel the employer has taken a chance on them and will be committed to success.

  5. Improves job role alignment

    A bad hire is one of the most damaging aspects of hiring. Around 60% of bad hires can have a negative impact on the performance of a team. If the particular candidate is a bad hire, they’ll negatively impact the company’s reputation. Moreover, the particular employee may not be able to perform and get the job done efficiently.

    Conversely, competency-based hiring helps to understand that the particular candidate has the necessary skill set. Thus, they demonstrate that they’ll align with the job role requirements thereby bringing down the chances of a bad hire.

The rise of recruitment automation tools in modern recruitment methods

Companies are switching to modern recruitment methods because of how outdated traditional hiring has become. As a result, they’re prioritizing their skills over degrees. This plays an important role in getting the right talent across different fields.

However, keeping track of all applicants can still be challenging. This is why recruiters today are using automation tools like Jobsoid. The application tracking tools help with easy segregation and segmentation. As a result, you can hire the most reliable employees.

Final Thoughts

The face of recruitment is significantly changing as businesses progress from traditional to modern recruitment methods. Considering this, most employers are focusing on skill-based hiring rather than degrees.

Such a method of hiring can help you get in touch with the right talent. If you want to make hiring easy for your company, Jobsoid is here. You can schedule a demo to learn more.

Anjali Saini

Anjali Saini is a content writer and editor with a rich two-year experience in the publishing industry. She has crafted polished content for clients across many industries. Currently, she focuses her expertise on writing for SaaS, tech, and finance, where her knack for translating complex concepts into engaging and accessible content shines.