Based on the U.S. Department of Labor’s Good Jobs Initiative Skills-First Hiring Starter Kit – nextlevelnow.workforcegps.org
What is it? | Why consider it? | Implementation Framework | Measuring Success | Virginia-Specific Advantages
What is Skills-First Hiring?
Skills-first hiring means evaluating and hiring workers based on the skills, knowledge, and abilities they can demonstrate, regardless of how or where they acquired those skills. This approach focuses on what workers can actually do rather than relying on traditional credentials like four-year degrees as proxies for capability. This strategy recognizes talent from diverse pathways including associate degrees, apprenticeships, certifications, self-teaching, military experience, and on-the-job learning. Skills-first hiring isn’t just about removing degree requirements—it’s about building comprehensive evaluation systems that accurately assess job relevant capabilities.
Why Virginia Employers Should Consider Skills-First Strategies
Business Benefits:
- Reduced hiring costs and time: 81% of employers report faster hiring, 78% see reduced costs
- Improved retention: 91% experience better employee retention rates
- Access to hidden talent: Nearly half of American workers could be excluded by degree-focused hiring
- Enhanced performance: Skills-focused hires often demonstrate higher productivity and job satisfaction
Competitive Advantages:
- Larger talent pool: 30 million workers have skills for jobs paying 50% higher salaries but lack traditional credentials
- Veteran talent: Veterans bring transferable skills, quick learning abilities, and strong retention rates
- Community college graduates: Access skilled workers from affordable, accessible education pathways
Implementation Framework
Phase 1: Getting Started
(Month 1)
Build Internal Support
- Secure leadership buy-in and establish clear goals (faster hiring, improved performance, increased retention)
- Engage current employees and union representatives in identifying skill requirements
- Select an appropriate pilot role that can be broken into discrete skills and responsibilities
Choose the Right Position
- Avoid roles with legal/professional degree requirements
- Start with positions that have clearly defined, measurable skills
- Consider beginning with internal promotions before external hiring
Phase 2: Skill Identification
(Months 1-2)
Define ‘Core’ vs. ‘Great to Have’ Skills
- Core skills: Critical for day-one success, heavily weighted in hiring decisions
- Great-to-have skills: Beneficial but not essential, can often be developed on the job
Leverage Resources
- Use O*Net (Department of Labor) for skill requirements and job tasks
- Review industry-specific frameworks and competency models
- Interview current successful employees about essential skills
Create Evaluation Rubric
- Weight core skills more heavily than great-to-have skills
- Establish consistent scoring methods for fair candidate comparison
- Plan multiple evaluation methods for comprehensive assessment
Phase 3: Skills Evaluation Methods
(Months 2-3)
Multi-Method Assessment Approach
- Structured interviews: Use standardized, skills-focused questions and scenarios
- Hands-on evaluations: Job-relevant tasks, tool usage, or technical exercises
- Simulations: Role-playing exercises that mirror actual work situations
- Written assessments: Technical knowledge or scenario-based problem solving
Ensure Accessibility
- Use plain language in evaluations
- Provide reasonable accommodations for candidates with disabilities
- Offer diverse interview formats (in-person, phone, video)
- Consider sharing interview questions in advance for candidates with anxiety disorders
Phase 4: Recruitment and Hiring
(Months 3-6)
Craft Effective Job Postings
- Use clear, jargon-free language
- Explicitly state that skills take priority over credentials
- List specific evaluation methods and timeline expectations
- Include salary ranges and encourage diverse experience sharing
Expand Talent Pool
- Partner with Virginia Career Works centers and community organizations
- Connect with local community colleges and training programs
- Use DOL’s universal outreach tools for diverse candidate sourcing
- Leverage Virginia’s workforce development network partnerships
Fair Hiring Practices
- Focus on demonstrated skills rather than credential assumptions
- Avoid salary history requests
- Ensure pay reflects skill level, not educational background
- Maintain compliance with equal employment opportunity requirements
Measuring Success and Continuous Improvement
Track Key Metrics
- Time-to-hire and cost-per-hire improvements
- Employee retention rates and performance scores
- Diversity of candidate pool and hiring outcomes
- Employee satisfaction and career advancement rates
Ongoing Refinement
- Conduct quarterly reviews of hiring processes
- Gather feedback from new hires, managers, and HR teams
- Adjust evaluation methods based on job performance correlation
- Scale successful approaches to additional positions
Getting Started: Recommended First Steps
- Select a pilot position and engage current employees in skill identification
- Partner with Virginia Works for implementation support and resources
- Connect with local community colleges for candidate pipeline development
- Utilize federal resources including O*Net, apprenticeship programs, and evaluation tools
- Plan for 6-12 months to fully implement and refine your skills-first approach
Virginia-Specific Advantages
State Support Infrastructure
- Virginia Works provides frameworks and resources for skills-first implementation
- Partnership opportunities with community colleges and technical schools
- Access to apprenticeship programs through state and federal initiatives
- Workforce development grants and incentives for innovative hiring practices
Regional Talent Pipeline
- Strong community college system producing skilled graduates
- Military veteran population with transferable skills
- Growing technology and advanced manufacturing sectors
- Rural communities with untapped talent pools