With the rapid shift in workplace dynamics, relying solely on educational degrees and certificates for hiring decisions is becoming obsolete. A recent study by the
Boston Consulting Group indicates a growing preference for competence over degrees — a trend that's gaining traction. Employers are increasingly focusing on assessing candidates' skills and abilities using talent assessment tools to ensure they fit their job roles, effectively. MSMEs and startups, who often compete with resource-rich large companies for quality human resources will benefit from this approach.
Hiring Risks
According to CareerBuilder, 74% of employers admit to having hired the wrong person for a job. SMEs are the most impacted with 36% citing reduced productivity, 30% citing quality of work, and a further 28% citing lost time to recruit and train a new member. To mitigate these risks and ensure hiring the right person for the job, companies are turning to advanced pre-hire digital assessments that measure and report proficiency levels, accurately.
These talent assessment tools enable organisations to make informed decisions by evaluating candidates' knowledge, skills, and abilities, ensuring they possess the necessary competencies for the role. This shift from traditional credential-based hiring to skill-based hiring is crucial in today's competitive job market.
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The Shift from Degrees to Skills
Educational qualifications, while essential, often fail to provide a holistic view of a candidate's capabilities. As job requirements evolve, so do the specific skills needed to excel in these roles. Moreover, the reliability of resumes is questionable, with Forbes reporting that 70% of candidates lie on their resumes.
McKinsey and Company highlights that hiring based on skills predicts job performance five times better than hiring based on education and more than twice as well as hiring based on work experience. This underscores the importance of digital assessments in evaluating practical skills alongside formal qualifications to find the right person for the right job. According to a recent article by Harvard Business Review, skill-based hiring allows businesses to hire from a broader talent pool that includes both internally available talent pool and those Skilled Through Alternative Routes (STARs).
By utilising skill-testing software, companies can customise assessments to match specific job requirements. This approach of performance-based assessment not only verifies qualifications but also evaluates practical skills, essential for effective job performance, tailored to their environment as opposed to standardised tests available in the market that may not factor the context of the hiring organisation or the job, in the tests administered.
Matching Candidates to Alternative Roles
Another benefit of using skill-testing software is that they facilitate evaluating candidates across multiple roles simultaneously as they reveal candidates' proficiency levels across various skills, allowing organisations to consider them for alternative roles within the company. This flexibility optimises talent acquisition and retention strategies by finding the right person for the right job and aligning skills with organisational needs effectively.
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AI-powered Digital Assessments for Better Screening
The integration of AI and technology in digital assessments has revolutionised hiring practices. AI-driven assessments can accurately evaluate technical competencies and analyse large datasets swiftly. AI-powered proctoring ensures authenticity by detecting anomalies and irregularities during assessments, ensuring only genuine candidates progress through the hiring process.
Adopting performance-based assessments is crucial for modern hiring strategies especially by Small and Medium Companies. This helps them acquire skills at affordable costs, without losing the competitive edge. By prioritising skills over credentials, companies can significantly reduce the risks associated with hiring and ensure they find the right person for the right job.
If you are looking to invest in reliable skill-testing software, request a free demo of SCORA® to build a skilled, capable workforce and foster productivity and success in today’s competitive landscape.
