Hr Library

The Skills-Based Hiring improves Retention rate by 10% and increases employee Salaries by 25%!

By | Nicolas BEHBAHANI | Global People Analytics Leader @ Future of Work | Leading Global HR Analytics, Driving Business Growth

πŸ’‘ To hire for skills, organizations need to implement robust and intentional changes in their hiring practices and change is hard.

πŸŽ‰ Increasing access to Skills-Based Hiring practices can be a win-win for both employers and workers:

βœ”οΈ Skills-Based Hiring boosts retention among non-degreed workers hired into roles that formerly asked for degrees : At Skills-Based Hiring Leader firms, non-degreed workers have a retention rate 10 percentage points higher than their degree-holder colleagues

βœ”οΈ Non-degreed workers hired into roles that previously required degrees experience a 25 percent salary increase on average.

πŸ“ˆ From 2014 to 2023, researchers observed an almost fourfold increase in the annual number of roles from which employers dropped degree requirements.

There is only about a 3.5-percentage point change in the share of non-degreed workers hired into the roles after the adoption of Skills-Based Hiring policies, according to a new interesting research published by The Burning Glass Institute and Harvard Business School using data πŸ“Š from a sample of 11,300 roles at large firms.

βœ…Skills-Based Hiring Practice: A win-win for both Employers and workers

Improvement of retention and compensation

Researchers found a real returns to the firms that demonstrate meaningful commitment to Skills-Based Hiring practice and is a win-win for both Employers and workers:

Click here to read the full article

Show More

Related Articles

Back to top button