How To Get Hiring Managers On Board With Skills-Based Hiring In The Engineering Industry

In today’s rapidly changing job market, talent shortages are becoming increasingly common, leading to a shift in hiring practices. A transformative approach gaining traction is skills-based hiring, which prioritises a candidate’s practical abilities over traditional qualifications like degrees or years of experience. This method is especially valuable in the engineering sector, where new roles often demand specialised skills, and the rise of technology and automation requires a diverse, adaptable workforce.

But why is this shift important now? As technology evolves, companies are recognising that the future of hiring lies in evaluating actual skills rather than relying on conventional indicators like academic degrees. For instance, if two candidates are competing for an engineering role—one with a degree and one without—skills-based hiring encourages a deeper assessment of who is truly better suited for the job, rather than automatically favouring the candidate with formal qualifications.

We often advise our clients not to limit their candidate pool by requiring a degree when advertising a role. This can deter highly skilled individuals who have taken different paths but are perfectly suited for the job. Many talented candidates may have gained relevant skills through hands-on experience or self-learning, while a candidate with a degree from 20 years ago may lack the up-to-date skills needed in today’s fast-evolving engineering landscape. A 2024 report shows that 94% of employers find skills-based hiring more predictive of job success than a CV alone. Yet, many hiring managers are still hesitant to move away from traditional recruitment methods.

This blog will explore the benefits of skills-based hiring and provide practical strategies to help you persuade hiring managers to make the switch.

Understanding the Benefits of Skills-Based Hiring

To get hiring managers on board, it’s important to clearly demonstrate the advantages of skills-based hiring. In the specialised field of engineering, where the demand for niche skills is high, showing the return on investment of this approach is key.

Enhanced Efficiency and Reduced Costs

Skills-based hiring improves job matching by allowing you to focus on the exact skills required for a role, rather than relying on general qualifications. This reduces mis-hires by up to 88%, directly impacting the bottom line by lowering the high costs associated with poor hiring decisions. In engineering, where a bad hire can delay projects and disrupt team dynamics, this is particularly valuable.

Diversity and Inclusion

By focusing on what candidates can do rather than where they’ve come from, skills-based hiring promotes diversity and inclusion. Traditional requirements like specific degrees can often create barriers, while a skills-first approach opens up the talent pool to candidates from diverse backgrounds who may have developed their abilities through unconventional paths.

Improved Employee Retention

When hiring managers prioritise skills, they find candidates who are genuinely suited to their roles. This alignment between job requirements and actual competencies enhances job satisfaction and boosts retention rates. As Indeed points out, “when employees feel they’re a good fit, they’re more likely to stay.” For engineering teams, where stability is crucial, this can be a game-changer.

Adaptability to Future Workforce Needs

Skills-based hiring ensures companies are prepared for the future workforce by aligning hiring practices with the skills needed in a rapidly changing industry. With trillions expected to be lost due to talent shortages and skills gaps by 2030, this approach helps businesses stay competitive and ready to tackle future challenges.

Strategies to Encourage Adoption Among Hiring Managers

Now that we’ve covered why skills-based hiring matters, let’s explore how to get hiring managers on board:

Educate Through Workshops and Training

Host workshops to explain the principles and benefits of skills-based hiring. Share real-world examples from the engineering sector to illustrate its effectiveness. If hiring managers are finding it difficult to locate the right talent, present skills-based hiring as a solution that enhances both speed and quality.

Start with Pilot Programmes

Implement skills-based hiring for a few select roles or departments to allow hiring managers to see the benefits firsthand without committing to a complete process overhaul. This can help ease them into the approach with minimal risk.

Use Data-Driven Advocacy

Present research and data that highlight the effectiveness of skills-based hiring in boosting diversity, reducing costs, and improving retention. Share metrics that are relevant to your organisation and track your own success rates. Concrete data can be a powerful driver of change.

Secure Leadership Endorsement

Gain support from senior leaders. When leaders advocate for skills-based hiring, it lends credibility and promotes acceptance across the organisation. Demonstrate how this approach aligns with the company’s strategic goals to win over hesitant hiring managers.

Overcoming Common Objections

Transitioning to skills-based hiring requires changing both mindset and practice. Address common concerns directly:

“It Takes More Time”

Acknowledge that skills-based hiring may initially require more effort but emphasise the long-term benefits of higher-quality hires and reduced turnover.

“It’s Hard to Change Our Current Process”

Recognise the challenge of change but highlight the benefits of modernising hiring practices. Use the success of pilot programmes to show that gradual change is feasible and beneficial.

Final Thoughts

Embracing this more flexible and out-of-the-box recruitment mindset is crucial in a competitive market, especially when facing a skills shortage. Companies that adopt a skills-first approach will be better positioned to attract the best talent and stay ahead of competitors who still rely on outdated hiring criteria.

By educating hiring managers, involving them in the process, and showcasing tangible benefits, you can pave the way for a more equitable and effective approach to recruitment. This method not only addresses immediate needs but also builds a future-ready workforce, positioning your organisation for long-term success.

Ready to embrace the future of hiring? Get in touch with us today to find out how we can simplify and streamline your hiring process, ensuring you attract the best talent and stay ahead of the competition.