Employers are spending more time validating the acquired skills of potential employees rather than relying on institutional or formal qualifications.
This is helping to address the growing disengagement by young people in the workforce.
A paper released by the OECD Centre for Skills said even large organisations like IBM and Walmart were utilising “skills-based hiring” and internal training programs rather than relying on external qualifications.
“Smaller businesses have also cultivated connections with local training providers to inform course offerings and help students enter the workplace,” the paper said.
“Part of this involves recognising that young people now engage in alternative learning activities, such as online courses or volunteering, to gain or boost their skill sets.
“Micro-credentials have also become a popular method to validate the skills individuals possess. The validation of skills acquired through a range of pathways and prioritising what job candidates can do, can help address job shortages.”
The OECD report said young adults were the most educated in history, but this was not matched by greater job satisfaction.
Instead, there were unprecedented levels of anxiety and worker disengagement.
“This unhappiness in the jobs market contributes to burnout, high turnover rates, and reduced productivity,” the paper said.
“Some 16 percent of young people are not employed, in education or training across the OECD.”
This trend was having a knock-on effect on jobs. The World Health Organization predicts a shortfall of 10 million healthcare workers by 2030 and the US tech industry has more than one million unfilled jobs.
The skills-first approach to recruitment involves spending more time screening, assessing, and validating skills rather than relying on “institutional prestige or professional networks” which may have unduly influenced hiring decisions in the past.
“Young people should also reflect on their skills and learn to signal them effectively,” the paper said.
“A skills-based resume can draw attention to their capabilities and accomplishments rather than just past job titles.
“Young people who face systemic barriers to gaining educational or professional qualifications, such as high tuition costs and biases in hiring practices, are likely to have acquired skills through alternative routes.”
“By unlocking young adults’ potential, we can cultivate a more fulfilled, engaged, and productive workforce.”
The full paper can be found on the OECD website.
