How Merit-Based Hiring Helps Businesses Improve Productivity
HR teams have followed an established hiring process for years. They advertise jobs, provide information about their company, and list required skills and attributes in the job description. Then, they evaluate candidates by reviewing piles of resumes and looking for prerequisites such as education, work experience, and references. The candidates who most closely meet the requirements are invited to interview, and the one who makes the best impression is offered the job.
Bad hires disrupt productivity and hurt staff morale. So, both private and public sector organizations have concluded that traditional hiring methods no longer work, and they are embracing skills-based talent management. In a skills-based hiring approach (also referred to as merit-based recruiting), recruiters concentrate on a candidate’s practical skills and performance instead of formal qualifications such as college degrees and job experience.
Private sector HR teams began placing more weight on skills and experience around five years ago, and the federal government enacted Executive Order 13932 in 2020. The law now requires federal agencies to prioritize candidates’ practical experience and place less emphasis on education and past job experience.
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