How to get C-Suite Buy-in for Skills-Based Hiring Practices
Despite rising concerns of a recession, our economy continues to expand. Even though hiring has slowed down, workers still have plenty of employment options in August 2019 the economy added 130,000 jobs. The unemployment rate continues to hold at a low 3.7 and the abundance of jobs are making it difficult for companies to attract the talent they need. By breaking away from outdated methods of hiring and switching to skills-based hiring (SBHP) your company can find the talent it needs to thrive.
At Skillful we’ve talked with hundreds of employers and we’ve learned the support from leadership is essential to make the transition to Skills-based hiring practices (SBHP), but we also know it can be difficult to start the conversation.
When proposing an idea to C-suite it is important to talk about profitability. For example, the U.S turnover rate continues to grow, in 2018 turnover rate in the U.S was 19.3 up more than 3 percentage points since 2014. According to a 2017 Retention Report by Employee Benefit News (EBN), the cost to hire a replacement if a worker leaves is $15,000 per person for an employee earning a median salary of $45,000 a year. Not only is it costing your business money to replace workers, but it is also cutting into your company’s productivity. The Society for Human Resource Management found the average time it takes to fill a given position is 42 days, which means your company is not reaching its full potential and that could be costing you money.
Skills-based hiring practices can help your company reduce time-to-hire by deepening your talent pool, improve retention by attracting candidates with the right skills for the job, and increase diversity by focusing the hiring process on skills, rather than on proxies for skills. Unlike traditional hiring practices, which rely heavily on proxies for skills like a candidate’s degrees, their past job titles, and the interviewer’s subjective evaluation, SBHP focus on the skills a candidate needs to do a job well, saving your company time and money in the long run.
Highlighting the fact that Leading companies continue to look for innovative ways of hiring candidates, and the idea of hiring people based on their skills instead of proxies is quickly gaining momentum is a way you can get buy-in from peers and leadership. Remind your company that rethinking your hiring practices is crucial to remain competitive.
When proposing a new idea to C-suite suggesting next-steps for your leadership team to follow is a good way to get people to take action. If you are ready to strategize next steps for your company, we suggest you and your team visit our employer page, where you can find tools and resources that can help your company transition to skills-based hiring. You can also visit the new Rework America Business Network DIGITAL BLINDSPOT: How Digital Literacy Can Create a More Resilient American Workforce report to learn how some of the largest employers in the U.S. are taking steps to implement skills-based practices.