Skill-based hiring is set to become the focal point of recruitment efforts in the next 18 months, according to a recent report by HirePro, a recruitment solutions firm. The report underscores the shift in recruitment towards a focus on skills rather than pedigree.
The report revealed that the current resume-centric hiring process poses a significant barrier to career changers. A majority of recruiters, approximately 60 per cent, are hesitant to consider candidates without relevant experience, even if they hold certifications. This often leads to career switches happening primarily within the same organization, as resumes play a minimal role in such cases.
Resume-centric hiring has also been associated with biases, the report added. Traditional recruiting methods result in biases related to factors such as educational background, prior experience, gender, location, and shared connections. However, by focusing solely on individual skill assessment, the report shows a remarkable 78 per cent reduction in these biases.
S. Pasupathi, Chief Operating Officer of HirePro, explained, "Relying solely on traditional resumes has proven to be a precarious endeavor, carrying a high risk of leading employers astray. Surpassing resumes, skill assessments have become a more reliable tool in the recruitment process and prove to be a highly effective and efficient approach."
The report highlighted that candidates selected through skill assessments outperform their counterparts in various industries, including IT (73 per cent), GCCs (64 per cent), BPO support (97 per cent), and start-ups (46 per cent).
Furthermore, integrating skill assessments has streamlined the recruitment process, reducing the effort needed to screen candidates from a large pool of applicants by 82 per cent. Candidates with the highest skills rise to the top, leading to improved success rates in subsequent rounds.
A substantial 75 per cent of recruiters anticipate that skill-based hiring will take center stage in the coming 18 months. This trend reflects the realization that a candidate's employability is primarily determined by their skills, prompting a transformation in recruitment procedures.
The report noted that 85 per cent of job seekers making false claims on their resumes, a significant increase from 65 per cent a decade ago. Factors contributing to this phenomenon include the use of standard resume templates, professional resume writers, and AI tools like ChatGPT. Consequently, recruiters have expressed reservations about relying solely on resumes, with only 1 per cent of recruiters placing their trust in this traditional tool.
Interestingly, while job descriptions increasingly emphasize the importance of behavioural skills, only 38 per cent of resumes mention these traits. This misalignment between job descriptions and resumes underscores the need for a shift towards skill-based assessments.
HirePro's report is based on a comprehensive analysis of 40,00,000 candidate resumes, 3,000 job postings, a survey involving more than 3,000 hiring managers, and feedback from over 500 corporate customers.