Is skills-based hiring right for the insurance sector?

The insurance sector is complex and diverse. This requires employees with a range of skills, including knowledge of insurance products and regulations, analytical and problem-solving skills, strong communication, customer service abilities, and more. Because of the complex needs of working in the insurance sector, using skills-based hiring practices can be a great recruitment approach.

Skills-based hiring can help identify candidates who have the necessary knowledge and expertise to succeed in the industry. Which can be crucial in an era of widening skills gaps and a candidate driven market. That’s why the market has seen a 21% increase in the number of jobs advertising skills and responsibilities instead of qualifications and requirements.

However, it’s important to note that a focus on skills alone should not be the sole criterion for hiring in the insurance sector. Soft skills such as teamwork, adaptability, and customer service skills are also critical for success in this field, and they are much more difficult to assess using traditional skills-based models.

What is skills-based hiring?

Skills-based hiring, also known as competency-based hiring, is an approach to recruitment that focuses on identifying and assessing the specific skills, knowledge, and abilities that a candidate possesses. Rather than relying solely on traditional measures such as education or work experience. For example, LinkedIn found that 71% of food service workers had the skills necessary for a career in customer service. However, an experience-focussed recruitment process would exclude them.

In skills-based hiring, the focus is on the candidate’s abilities to perform specific tasks and job-related responsibilities. As an employer, you identify the key competencies required for the job and then use various tools and techniques to assess a candidate’s proficiency in each of these competencies. These tools can include assessments, tests, job simulations, and structured interviews.

Skills-based hiring is often used in industries or roles where specific technical or functional skills are critical for success, such as in the technology, healthcare, or finance sectors.

5 reasons skills-based hiring is beneficial

By prioritising skills during the hiring process, employers can ensure that candidates have the knowledge and expertise needed to be successful in the role. Regardless of how they developed these skills. This can make it easier to find qualified candidates as it opens up wider talent pools to recruit from. There are other benefits too, including:

 1. Improved job performance
When candidates are hired based on their demonstrated skills and competencies, they are more likely to have the necessary knowledge and expertise to perform well in the role. This can lead to improved job performance and productivity.

 2. Reduced turnover
Skills-based hiring can result in a better job fit, which can lead to higher job satisfaction and reduced turnover. Employees who are more qualified for their job are likely to be more engaged and committed to their work.

 3. More objective hiring decisions
Skills-based hiring reduces the reliance on subjective factors such as education or work experience, and instead focuses on specific skills and competencies. This can help make the hiring process more objective and reduce the potential for bias.

 4. Improved diversity and inclusion
By focusing on specific skills and competencies, skills-based hiring can help reduce bias and increase diversity in the workplace. It can also help identify candidates from non-traditional backgrounds who may have the necessary skills and knowledge to succeed in the role.

 5. Cost-effective recruitment
Skills-based hiring can help reduce recruitment costs by enabling employers to identify the best candidates quickly and efficiently. By reducing turnover and improving job performance, it can also lead to long-term cost savings for the organisation.

How technology can help you get the most out of skills-based hiring practices

As more and more employers turn to a skills-based approach, many are looking for ways they can leverage technology to assist. Technology can be a valuable tool for organisations looking to get the most out of skills-based hiring practices and can be used in a variety of ways:

– Online skills assessments evaluate a candidate’s skills and competencies in a more objective and standardised way. These assessments can be customised to specific job requirements and can help identify the most qualified candidates quickly and efficiently.

– Applicant tracking software (ATS) help organisations manage the hiring process and track candidate data in a more organised and efficient way. ATS can help with CV parsing, screening, and scheduling, and can help identify top candidates based on their skills and qualifications.

– Video interviews can be a useful tool for evaluating a candidate’s soft skills and communication abilities. Video interviews can be conducted remotely and can help identify candidates who may not have been identified through a traditional CV or application.

– Artificial intelligence (AI) can be used to evaluate candidate data and identify patterns that may not be immediately apparent to human recruiters. AI-based tools can help with CV screening, identify the most qualified candidates, and even help with personalised candidate outreach.

Build a skills-based recruitment strategy that works for your business

At Davies we believe innovation and creativity starts with the people you hire. Get the help you need to create a bespoke recruitment strategy that will source the skills you need to drive your business forward. As specialists in the insurance sector, we can accelerate your search and ensure the best possible fit for your business.

Please, get in touch to find out more about how we can help your business.