The world of work is changing fast, and employers and job seekers need to keep up. According to the 2013 population white paper, 900,000 Baby Boomers will enter their silver years (potentially leaving the workforce) by 2030. Hence, the old hiring methods — mainly focusing on degrees and qualifications — are no longer cutting it.
A shift towards a “skills-first” mindset is becoming crucial for staying competitive in today’s evolving job market. This approach focuses on what people can do, rather than just their paper qualifications, helping to create a more adaptable, inclusive, and dynamic workforce.
Why is a skills-first approach so important?
Thanks to new technologies and emerging industries, the workplace is experiencing big changes. According to the SkillsFuture Jobs-Skills Insights 2024 report, job skill requirements have shifted by 25% since 2015 and are expected to double by 2027. This shows that employers and jobseekers must focus on skills rather than degrees or certificates to keep up with the fast-paced changes.
Adopting a skills-first mindset in Singapore helps address critical issues like skills gaps and talent shortages. Companies can tap into a broader range of talent by looking at what people can do. This also means employees are more satisfied and motivated because they feel their actual skills and potential are recognised. Plus, it makes companies more future-proof, ensuring they can adapt to whatever challenges come their way.
What are the benefits for employers?
For employers, embracing a skills-first mindset can bring significant benefits, from better recruitment and employee retention to improved business growth. The report also highlights research from the Institute for Human Resource Professionals (IHRP) in Singapore, showing that companies focused on hiring based on skills have seen clear improvements in work quality, access to a broader talent pool, and a more diverse and inclusive workplace.
One significant advantage is the ability to address skills shortages, directly impacting key business goals like productivity and innovation. The report also highlights how Singaporean companies, like Inspire-Tech and ST Logistics Group, have experienced significant improvements in employee performance, job satisfaction, and retention after shifting to skills-based hiring.
By focusing on what candidates can do rather than their academic backgrounds, these companies have hired people with the right skills and mindset for growth. On top of hiring benefits, it also promotes a culture of continuous learning, which helps companies remain competitive. Employees who feel supported in their learning journeys are likelier to stay with the company, innovate, and contribute to its long-term success.
How will jobseekers benefit?
Focusing on skills is a game changer for jobseekers. It allows individuals to highlight their abilities beyond what’s on their academic transcripts. Learning and adapting are often more important than a degree in today’s fast-evolving economy. The launch of SkillsFuture, a national movement to provide Singaporeans with the opportunities to develop their fullest potential throughout life, and the Skills Framework gives jobseekers the necessary resources to build the right skills.
Furthermore, these initiatives help people align their career goals with what’s in demand, ensuring they’re prepared for the future of work. After all, as the job market changes, staying competitive means continuously learning and picking up new skills. Jobseekers who take on such a mindset will be better equipped to navigate the challenges of tomorrow’s workplace.
More employers today are moving towards skills-based assessments, using tools like psychometric tests and practical exercises to gauge whether a candidate has the skills needed for the role. This gives jobseekers a chance to shine by showcasing what they can do, rather than just relying on qualifications.
HR’s role in driving change
Human Resource (HR) professionals are vital in pushing this shift toward a skills-first workplace. In Singapore, HR teams are increasingly working alongside business leaders to help make skills-based hiring and development the norm. By aligning hiring strategies with business goals, HR professionals ensure that companies get the right people with the right skills for the job.
It’s also up to HR to foster a culture of continuous learning. Moving away from the traditional “plug-and-play” model — where employees are expected to perform without much development — to a “plug, train, and play” model encourages ongoing learning. This helps employees grow and ensures the company stays agile and ready for future challenges.
