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5 minute read

September 26, 2024

Skills-First Hiring Key to Improve Employees’ Career Health and Company Success, Says Expert

According to expert insights, skills-first hiring enhances employees’ career health and drives business success. Here’s how this approach is reshaping the future of work.

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In Singapore’s fast-changing job market, the shift toward skills-first hiring is not just practical—it’s a compassionate and timely response to the evolving needs of both employers and employees. This approach helps businesses address workforce shortages and prioritises employees’ well-being by focusing on their career health.

As companies adjust to the challenges of a competitive job market, adopting skills-first hiring can build an adaptable, inclusive, and fulfilled workforce. Let’s explore how this approach enhances career health, drawing on insights from Professor Joseph Fuller of Harvard Business School, an expert in workforce management.

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Why is Singapore moving toward skills-first hiring?

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Singapore’s economy is evolving rapidly, driven by technological advancements and changing work dynamics. Traditional hiring methods, which rely heavily on academic qualifications, no longer fully meet the demands of today’s job market. There’s a growing recognition that technical and soft skills are the actual markers of employability.

Professor Fuller explains that focusing on candidates’ skills instead of their educational background can help ease job shortages while making workplaces more inclusive. He notes:

“Simply dropping degree requirements seldom opens jobs to those without a college degree. Skills-based hiring requires changes in hiring processes and incentives to avoid slipping into the ‘In Name Only’ approach, where policies don’t reflect real outcomes.”

By embracing skills-first hiring, Singapore is tapping into a broader talent pool that includes individuals from all walks of life. This shift recognises that talent extends beyond traditional qualifications. Fuller’s research shows that companies making these changes have seen nearly a 20% increase in hiring workers without conventional degrees. This isn’t just a benefit for employers—it’s essential for building a resilient economy.

What is Career Health?

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Career health is more than just having a job; it’s about feeling satisfied and engaged in your professional life. Career health becomes even more critical in Singapore, where lifelong learning is a priority. It involves career growth opportunities, job satisfaction, a healthy work-life balance, and ongoing skill development.

Employees with robust career health feel valued and confident in navigating their professional journey. Fuller notes that “career navigation is driven by access to accurate information, skills, credentials, and social capital.” Building robust career support systems helps employees stay competitive and take control of their professional futures.

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Why supporting career health is essential for employers

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Supporting career health isn’t just the right thing to do—it’s essential for businesses. Companies that focus on their employees’ well-being foster an environment of engagement, loyalty, and productivity. Employees who feel supported are more likely to stay with the company, reducing turnover costs and boosting overall performance.

Fuller highlights that “better business performance is underpinned by better work-life integration.” In a competitive market like Singapore, businesses that invest in their employees’ career health become employers of choice. Companies attract top talent and ensure long-term success by focusing on growth and well-being.

How employers can enhance employees’ career health

Employers play a pivotal role in supporting their employees’ career health. By investing in their development and well-being, businesses can create an environment where employees feel empowered and supported in their careers. This is especially important in a skills-first hiring model, which emphasises flexibility and growth.

Here are some ways employers can foster career health:

1. Provide clear career pathways

Employees need to know how they can grow within a company. By developing and sharing clear paths for advancement based on skills, companies give their workforce a sense of direction. Fuller’s research highlights that “transparent career pathways are essential for enabling upward mobility and expanding career opportunities.”

2. Invest in continuous learning

Companies that offer training programs, workshops, and mentoring empower their employees to take control of their growth. Fuller emphasises, “Skills development and adaptability are crucial as technology and market demands evolve.”

3. Foster a culture of feedback

Open communication and regular feedback are vital in helping employees understand their strengths and areas for improvement. Creating a culture of learning and support makes employees feel valued and appreciated.

4. Promote work-life Integration

Recognising the importance of work-life balance is critical. Companies can support their employees’ well-being by offering flexible work arrangements, mental health resources, and wellness programs. Fuller notes that balancing operations with employee needs is vital for future success.

5. Encourage networking and exposure

Allowing employees to network and explore different roles within the company can broaden their career horizons. Fuller’s research stresses the importance of “expanding career exposure to ensure that employees are aware of diverse opportunities as they grow in their careers.”

Skills-first hiring: A win-win situation for employees and employers

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Skills-first hiring is a powerful tool for enhancing employees’ career health in Singapore’s dynamic job market. For businesses aiming to thrive in a competitive environment, adopting this approach is essential for driving growth and innovation. 

By focusing on career health and creating a supportive atmosphere, companies can help employees confidently navigate their career journeys, benefiting the company and the broader economy. Together, we can build a future where employees feel valued, supported, and empowered to succeed—creating a resilient workforce ready to face the challenges ahead.

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