Skills-Based Hiring: A Recession Resistant Strategy

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Skils-based hiring
Skills-Based Hiring: A Recession Resistant Strategy

In a rapidly evolving job market, the traditional metrics of hiring are undergoing a revolutionary shift. At Armor People Link, we recognize the transformative power of skills-based hiring, especially during challenging economic times. As companies face the dual challenge of attracting skilled workers and navigating a recession, our focus on empowering individuals to embrace opportunities becomes more critical than ever. Let’s explore why the most forward-thinking employers are adopting skills-based hiring strategies and how Armor People Link can be your strategic partner in this transformative journey.

Skills-Based Hiring: A Revolutionary Trend

Recent trends highlight a shift in the hiring landscape towards skills-based evaluation. According to TestGorilla’s The State of Skills-Based Hiring 2022 report, 76% of employers are now using skills-based hiring to find new talent, with a substantial 55% incorporating role-specific skills tests. This strategic approach is gaining momentum, with a 21% increase in job postings focusing on skills and responsibilities rather than qualifications, as noted by LinkedIn.  Forbes: Why Skills-Based Hiring is On The Rise

Navigating Skills-Based Hiring during Recession

In the midst of economic uncertainty, the ability to pivot and implement cutting-edge talent practices is paramount. Armor People Link is committed to empowering our clients by strategically upskilling their workforce implementing effective and practical hiring practices.

The Productivity Advantage of Strategic Skill-Based Hiring

  1. Better Quality of Candidates: Research shows that the estimated cost of a bad hire can be significant. Focusing on skills not qualifications significantly improves the quality of candidates, reducing mis-hire rates by 92.5%, with 44% reporting a decrease of more than 25%.
  2. Expanded Talent Pool: Skills-based hiring broadens the pool of potential workers, a crucial advantage in industries facing talent shortages. This shift is not limited to the private sector, as evidenced by the state of Maryland removing four-year college degree requirements for 50% of its positions.
  3. Accelerated Time to Hire: Armor People Link prioritizes efficiency, recognizing that time-to-hire is a crucial metric for success. Skills-based hiring results in a more rapid hiring process, with 91% of companies experiencing a reduction in total time-to-hire, and 40% reporting a decrease of more than 25%.
  4. Reduced Hiring Costs: Filling vacancies faster through hiring reduces the overall cost of advertising and marketing positions. Candidates hired based on skills requiring minimal training saves both time and money during onboarding.
  5. Improved Retention Rates: McKinsey notes that hiring for skills is more predictive of job performance than education or work experience. Employees without college degrees tend to stay in their roles 34% longer, addressing the rising challenge of staff turnover.
  6. More Diverse Workforce: Skills-based hiring fosters workplace diversity by eliminating barriers based on educational qualifications. It creates equal opportunities for candidates to be considered based on their ability to perform required duties.

Your Partner in Success

The strategic advantage of skills-based hiring is not just a trend; it’s a transformative approach that aligns with the demands of today’s workforce. Armor People Link stands as your partner in navigating the challenges of a recession, offering expertise in identifying, upskilling, and strategically placing individuals who not only meet your requirements but drive productivity to unparalleled heights.

Ready to embrace the opportunities that strategic upskilling can bring to your business? Contact Armor People Link today, and let’s embark on a journey of success and productivity together. The future of your workforce begins with the strategic empowerment of individuals embrace new opportunities.  Learn more about how to get started with our Workforce EDGE program.

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