Lost in a sea of skills? How employers can shift to skills-based hiring

In looking at the fastest-growing competencies for the next decade, Resume Now found they predictably include big data, AI and technological literacy — but resilience and empathy are also emerging as crucial qualities for future talent.

The platform analyzed World Economic Forum and Burning Glass data to predict what the most valuable skills will be in 2030, stating: “For employers, this highlights the value of supporting skill development and recognizing alternative credentials that lead to results.”

For Eddy Ng, Smith professor of equity and inclusion in business at Queen’s University, while technical skills are gaining attention, employers should not lose fact of the foundational value of soft skills like empathy and leadership.

“You always need somebody who is a good manager, a good leader, a good communicator, somebody that has high emotional intelligence,” he says.

“Knowing what to say, when to say it, to get the effect that you want. In that sense, it's not that difficult to project future skills.”

Closing the gap with skills gap analyses

According to Resume Now’s data analysis, AI and big data skills are projected to grow 90 percent by 2030, while technological literacy will grow by 69 percent. They also matched skills and competencies to current non-degree credentials that have been shown to lead to measurable income increases.

For example, certifications in talent management can potentially increase an employee’s wage by up to $4,800, while analytical thinking skills can add up to $4,900.

The report recommends that employers “take stock of the skills they have on staff and identify gaps,” and Ng agrees, adding that employers should already be conducting “skills gaps analyses” regularly and using those results to strategize.

Ng points to the National Occupational Classification (NOC) as a valuable resource for Canadian employers; by consulting the NOC and other tools, he explains, organizations can ensure their hiring and development efforts are on track with trends and national standards.

“If there's a gap, it can do one of two things,” he says. “They can go ahead and hire the skills, or they can actually start developing them in house, especially if they are in niche industries that are not easy to hire.”

This decision will depend on the availability of talent in the market, Ng adds – especially in cases where proprietary knowledge is a factor, building skills internally can be more effective and sustainable in the long term.

Mapping out skill needs and outcomes

Trevor Buttrum, executive director of the Canadian Association of Career Educators and Employers (CACEE), stresses that in today’s evolving hiring environment, employers need to move beyond just skills to outcomes assessments as well.

“What are the skills that are required, but what are the outcomes that those skills ultimately produce?” he says, highlighting the importance of connecting skills to business objectives.

By clarifying the link between competencies and organizational outcomes, employers can make more informed decisions about hiring, training, and performance management.

“It's one thing to say that you have good communication skills – well, that can be applied to almost any role that's out there,” Buttrum says.

“Put it in the context of the outcomes that are related to that role, and what happens if the individual doesn't have that particular set of skills or that particular competency? What's the risk, and also what's the reward, when they flourish in that competency?”

Assessing certifications and micro credentials

According to Resume Now’s analysis, certifications tied to creative thinking can boost wages by up to $7,100, while those in empathy and active listening can add up to $6,000 (depending on which courses are taken).

The report also cautions that “not all credentials carry the same weight,” and employers must be able to distinguish between high-value and less meaningful certifications.

As Ng notes, with so many types and levels of credentials now easily available online, employers are harder pressed to identify which are legitimate. This requires them to dig a bit deeper than resume lines to know which are credible and which truly reflect job-ready skills.

He says this involves employers first researching credentials that come across their desk on resumes, and second, modifying how they assess job candidates; for example, with portfolios or live demonstrations of skills.

Buttrum agrees, adding the importance of evidence as a rule of thumb for HR when skills-based hiring. A portfolio-based approach means candidates will prove their skills through concrete examples and outcomes, rather than relying solely on certificates or transcripts.

“Essentially, what you're looking for is evidence that the individual can do the job that you're hiring for,” he says.

“Whether that comes to you through a portfolio of work, perhaps some sort of assessment that you've built into your hiring process, or maybe you're using a case-based hiring system.”

Inclusivity, equity and the skills gap

One of the biggest promises of skills-based hiring is greater equity and access; by focusing on skills and alternative credentials, employers can open doors to candidates who may previously have been excluded by limited access to technology training or post-secondary education.

Ng elaborates, explaining that resumes have long been a source of bias, with college and university names being used as markers of “pedigree” by hiring managers; “So when you walk away from academic credentials, it certainly levels the playing field.”

Focusing on micro credentials and skills aren’t a perfect solution to DEI challenges, however. As Ng warns, not everyone has equal access to technology or the time to pursue new credentials.

“If you come from a family that, you haven't been exposed to a lot of technology in the house … then you don't really feel a connection, and as a result, you're less likely to jump into those fields,” he says, using Bill Gates as an example of someone for whom early access to resources was highly beneficial, career-wise.

“Having that early exposure to all this tech stuff tech literacy, is what we're looking for,” he explains, however, “having exposure to technology at an early age and having a sustained interest, requires resources.”

Buttrum highlights the need for inclusive assessment tools, pointing to service providers that specialize in inclusivity and diversity – “They create opportunities for employers to be able to access and evaluate if those skills are equity based or diversity based, and take those into account.”

Employers can also make their hiring processes more accessible by providing interview questions in advance, he adds, and by using multiple assessment methods and encouraging applications from candidates who may not meet every listed requirement.

“I think it's important to recognize that with the full spectrum of talent that's out there, you're trying to create opportunities to access it, to evaluate it, and to invite it into your organization,” Buttrum says.

“And if you can create as many pathways as possible to that, it's all the better in the interests of the employer and the labour market.”