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Skills Based Hiring

Term in Qoyod's Business Glossary. Practical definition with examples from the Saudi market.

What skills based hiring is

Skills based hiring (التوظيف على أساس المهارات) is the selection of a candidate on the basis of what they can actually do, instead of relying on a degree, a previous job title or a number of years of experience as evidence of ability.

The definition turns on the phrase “as evidence of ability”. A degree, a title and a length of experience are facts about a candidate’s past. Under conventional selection, each is taken as proof that the candidate can do the work. Skills based hiring withdraws that status from them and asks instead for evidence of the ability itself.

The definition does not say that these three facts tell an employer nothing. It says that they are not relied on as the evidence of ability. Where a degree is genuinely needed for a role, it keeps its place, and where it is only preferred, it can still be weighed. Both points are set out in the sections below.

What skills based hiring changes in practice

The change begins with the job advertisement. A conventional advertisement sets a condition such as “a bachelor’s degree in a relevant field and 5 years of experience”. An advertisement built on skills states what the holder of the role will do, and then asks for evidence of the ability to do it.

The difference is not one of wording. The first condition excludes before it examines. A candidate without the degree, or with four years of experience instead of five, is out of the process before anyone has looked at what they can do. The second form reverses the order: the work is described first, and the candidate is then asked to show that they can perform it.

The two advertisements can describe the same role. What separates them is where the decision to exclude a candidate is taken. In the conventional form, it is taken at the point of the stated condition, on facts about the candidate’s past. In the skills based form, it is taken after the evidence of ability has been examined.

How skills based hiring is built

  1. It starts from job analysis: what the tasks of the role actually are, and which abilities those tasks require.
  2. The requirement is separated from the preference: whatever the role cannot be performed without is a requirement, and anything else is a preference that is weighed, not one that excludes.
  3. Evidence is designed for each skill: a short practical task, a structured interview with behavioural questions, or a sample of earlier work.
  4. The evidence is assessed against a declared standard set before the candidates are seen, not after.

The first step fixes what the rest of the process measures. An advertisement that states what the role holder will do needs a description of the tasks of the role, and the abilities that the evidence later tests are the abilities those tasks require. Without that analysis, there is nothing against which a skill can be specified.

The second step decides what happens to a candidate who lacks something. A missing requirement means that the role cannot be performed, so the candidate does not continue. A missing preference does not end the candidate’s application. It counts for less in the comparison, alongside everything else the evidence shows.

The third step gives each skill a form of evidence. The three forms named in that step differ in what they show. In a short practical task, the candidate performs part of the work. A structured interview with behavioural questions asks about situations the candidate has dealt with in previous work. A sample of earlier work shows something the candidate has already produced. Each is evidence of ability, not a statement about the candidate’s past titles or qualifications.

The fourth step concerns timing. The standard is declared, and it is set before any candidate is seen. Setting it in advance means that every candidate’s evidence is assessed against the same declared standard.

What makes skills based hiring fail

  • Keeping the degree as a silent requirement. It is removed from the advertisement, but the assessor still decides by it. The text changes, but the decision does not.
  • Long tests with no payment. A task that takes a full day, set for a candidate who has not yet been accepted, excludes anyone who does not have that time, and so brings bias back in through another door.
  • Confusing the skill with the tool. It means requiring mastery of one particular system where what the role needs is an understanding of the field, so a candidate who would learn the tool in a week is excluded.

The silent requirement undoes the separation between requirement and preference. The degree no longer appears as a condition, but it still works as one, because the person assessing the evidence continues to give it the deciding weight. Applicants see an advertisement built on skills, but the outcome is decided by the degree.

The long unpaid test fails in a different way. A practical task is meant to show whether a candidate can do the work. When the task takes a full day, it also tests whether the candidate can give a full day without payment to an employer who has not yet accepted them. Candidates who cannot give that time leave the process for a reason unrelated to their ability, and the exclusion that the method set out to remove returns by another route.

The confusion between skill and tool goes back to the job analysis. If the role needs an understanding of the field, then the ability to be evidenced is that understanding. A requirement for mastery of one named system measures familiarity with that system instead, and it excludes a candidate whose understanding of the field is in place and who would need only a week to learn the system.

Skills based hiring in roles that require a licence

Not every role is open to skills based hiring to the same degree. In roles that require a professional licence or a qualification set by regulation, the degree remains a genuine requirement and not a barrier.

Skills based hiring does not remove that requirement. What it does is make clear the difference between a degree that is asked for because it is necessary and a degree that is asked for because asking for it is customary.

In the terms of the second building step, a licence or a qualification set by regulation sits on the requirement side: without it the role cannot be performed. A degree that is asked for out of custom sits on the preference side, where it can be weighed but does not exclude.

What skills based hiring offers an organisation

The visible effect of skills based hiring is in two places. The first is a wider base of candidates, in roles where what is scarce is the degree and not the ability. In such roles, a condition set on the degree keeps out candidates who have the ability without the degree, and evidence of ability brings them into the comparison.

The second is a path for internal mobility. An employee who has the abilities required in another role becomes a candidate for that role. When a role is described by its tasks and the abilities they require, an existing employee can be assessed against the same evidence as an outside candidate, whatever their current job title. That connects skills based hiring directly with internal mobility, the movement of employees between roles within the organisation.

This is an explanation of the concept, not legal advice.

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