A Harvard Business Review study found that 82% of sampled job advertisements either required or stated a strong preference for experience. Although organisations may hire based on past work experience or qualifications, these aren’t guaranteed indicators of how well a candidate will perform in a new organisation and role.
Often, the idea behind the philosophy of hiring this way is that experience begets knowledge and skills required for the role. However, because experiential metrics used by organisations vary, these aren’t valid indicators of a candidate’s potential to excel, reports Professor Chad Van Iddekinge of Florida State University, in a paper published in Personnel Psychology.
Hiring culture in Singapore is shifting to skills-based
As it stands, even in the technology industry where hiring has traditionally been based on job history and academic qualifications, things are changing. Over a hundred companies, including PayPal, HSBC, Cisco and Singapore-based start-up Accredify, have pledged to fill tech job vacancies using a skills-based approach.
Their commitment was part of a launch of a virtual handbook in late 2023, which gives a framework for tech companies to attract, assess and develop talent based on competencies.
Senior Minister of State for Communications and Information Tan Kiat How said that a skills-based hiring approach will help companies not miss out on talents that could have slipped through the cracks.
“Companies can tap a wider pool of talent and find a candidate with the necessary skills for the job. Job seekers will be assessed based on their tech skills and potential, regardless of their background or previous work experience.”
After all, academic qualifications and work history do not reflect a job seeker’s current abilities, given how skills at work, with digitalisation and artificial intelligence (AI) tools, are changing the skillsets needed at workplaces for both small and medium enterprises (SMEs) and multinational corporations (MNCs) rapidly.
There are many new and diverse ways to acquire new skills, from micro-credentials to courses, which Singaporeans who have taken ownership of their own skills development can sign up for and pay using SkillsFuture credits.
Interviews and job descriptions should be skills-first
Interview processes and job descriptions should change to match a skills-based hiring approach as well, shared Julia Ng, Assistant Chief Executive at Workforce Singapore (WSG).
“Interviews should focus on how candidates have applied their skills in real-world situations, which provides insights into their problem-solving abilities, interpersonal skills, and overall suitability for the role,” she said to HRMAsia.
This also helps when hiring mid-career job seekers who might be making a change to a new industry or sector.
“Look at how they can bring in fresh perspective and novel approaches to problem-solving through skills-based assessment or practical case studies,” Julia added.
“While specific industry knowledge may differ, mid-career individuals also bring with them transferable skills (which don’t necessarily show in qualifications or prior job experience) such as effective communication, project management, leadership, and teamwork, which could be of value to the organisation.”
How to vet candidates in a skills-first way
Here’s a four-point checklist to weigh when taking on a candidate based on their skills, rather than streamlining them out due to a lack of direct fit in terms of academic qualifications or work experience.
1. Do they exhibit potential?
Checking for experience is a clear-cut process: Does the candidate have knowledge of programming languages? Have they managed a team before? Hiring for growth potential is less obvious and depends on a host of factors. This manifests in various forms, from personal attributes such as the ability to work in teams to proficiencies in other related fields.
They may not be the ideal candidate today or possess all the hard requirements of the position you’re trying to fill, but they may have certain qualities and skills that make them a long-term fit for your organisation.
These candidates may require a little more time to get up to speed, but with on-the-job training, they’ll be ready to hit the ground running.
2. Do they possess transferable skills?
Candidates with no work experience may bring to mind fresh graduates, but, in reality, this group may also be professionals making a mid-career switch. Apart from experience, you can look into their transferable skills.
Transferable skills can be utilised across roles and aren’t company or function-specific. This can include soft skills such as effective communication and problem-solving, as well as a mix of hard and soft skills like project or team management.
Compared to technical skills such as data analysis, coding, or accounting, transferable skills can be assets across functions and industries. They are also developed throughout the course of the career or part of one’s personal attributes.
Looking at transferable skills could open up a pool of high potential candidates that display a willingness to get up to speed quickly.
3. Can they learn to be adaptable?
Not only are these candidates proactive, but they are also likely to display a higher degree of adaptability.
A candidate with years of experience in the given role may be set in their ways of thinking and working. They’re likely to have developed a personal set of habits, processes, and culture that may be harder to budge from compared to a candidate who is new to the industry.
Candidates with no experience are compelled to be flexible and motivated to impact change. Training them to adopt your company’s processes or methods may be easier. Plus, they’re more likely to be receptive to future change depending on what the organisation needs.
4. Will they bring fresh perspectives?
Candidates with no prior experience come with no expectations around how things should be done. They may try new approaches, especially when they have to learn the ropes of a new industry and apply what they’ve gathered from other industries.
As these candidates aren’t constrained by best practices or previous experience, they will reimagine solutions by looking at them from a different perspective, incorporate different methods, and drop cookie-cutter approaches.
By hiring based on such potential, you’ll be tapping into a more diverse pool of candidates who can bring innovative and fresh ideas to your organisation. Progression often relies on fresh ways of thinking, so the ability to think out of the box is something that occurs when they’re pushed beyond their comfort zone.
Work experience is still a valuable metric for hiring processes. It may even be necessary for certain job roles, especially middle management or senior positions that require hard, technical skills. However, there are more ways than one to measure and qualify a candidate’s suitability for a role. Hiring for potential is one to consider.
