The public sector plays a key role in advancing skills-based strategies, driven by gubernatorial leadership. Whether in the early stages or more advanced in their adoption of skills-based policies and practices, states and territories continue to innovate and evaluate these shifts. Skills-based hiring transforms talent acquisition by prioritizing a candidate’s skills, competencies, and relevant work experience over traditional qualifications like degrees or job titles. This approach addresses two significant limitations of traditional hiring methods: the risk of poor job fits when degrees are the primary filter, and the narrowing of the candidate pool when degree or specific title requirements are rigidly enforced. While skills-based hiring can add complexity to the hiring process, it offers significant benefits, including better job matches, reduced turnover, and increased job satisfaction. Additionally, it promotes career mobility and fosters a more inclusive workforce, which can, in turn, positively impact the broader economy.
State and territory governments have emerged as leaders in this transformation, with many enacting legislation or executive orders to remove degree requirements and prioritize skills and experience. This shift not only opens broader talent pools but also addresses workforce shortages and promotes diversity and inclusion. Early evidence shows that states adopting skills-based policies see a higher proportion of job postings without degree requirements, which can increase accessibility to public sector jobs for individuals with non-traditional backgrounds. Governments have a strong incentive to lead this change, given the significant supply gaps in critical public sector roles. As the workforce ages and labor force participation declines, the need to attract skilled workers becomes even more urgent. Expanding skills-based hiring can help bridge these gaps, improve job fits, and enhance public services. States and territories that lead by example in skills-based hiring can catalyze broader adoption in both public and private sectors, potentially impacting millions of jobs across the U.S. Several states, including Maryland, Colorado, Pennsylvania, and Massachusetts, have already made significant strides in removing degree requirements, with positive outcomes such as reduced vacancy rates, increased application numbers, and improved job fit. These examples highlight how skills-based hiring can be operationalized in state government and the public sector. As states continue to build on this momentum, skills-based hiring is poised to become a model for other employers seeking to attract and retain a more diverse, skilled, and adaptable workforce.
1. Define Clear Goals and Objectives
The initial step in transforming public sector talent through skills-based hiring involves specifying clear goals and objectives for the policy changes. These aims help states align their efforts and measure the effectiveness of the skills-based approach. By focusing on tangible outcomes, states can better manage the transition and ensure that the benefits of skills-based hiring are realized across the board.
One key objective of skills-based hiring policies is to enhance the diversity of candidates by emphasizing skills over degrees. By removing degree requirements where feasible, states can attract a wider range of applicants from various educational and professional backgrounds, thereby enriching the talent pool. This approach not only broadens the range of potential hires but also fosters an inclusive environment that values the diverse experiences and capabilities individuals bring to the public sector.
Another crucial aim is to boost workforce efficiency by hiring based on competency. Traditional hiring methods often emphasize educational qualifications that may not correlate directly with the skills needed for a specific role. By shifting the focus to competencies and skills, public sector agencies can identify candidates who are better suited to perform the duties of the job effectively, leading to higher productivity and job satisfaction among employees.
2. Establish a Baseline
Before implementing skills-based hiring policies, it is essential to gather baseline data on current hiring practices. Establishing a baseline allows states to measure progress and assess the impact of the new policies over time. By comparing pre- and post-implementation data, agencies can identify areas of improvement and make necessary adjustments to enhance the effectiveness of skills-based hiring strategies.
Current hiring data serves as a critical component of this baseline analysis. This includes the number of job postings that require degrees versus those that prioritize skills. By examining this data, states can understand the extent to which educational qualifications are currently being valued over skills and competencies. Workforce demographics also provide insight into the existing diversity among employees, including educational, racial, and gender diversity. Understanding these demographics helps identify gaps and opportunities for improvement in attracting diverse talent.
Hiring outcomes offer another valuable metric for establishing a baseline. Metrics such as time to hire, employee retention rates, and performance evaluations under traditional hiring methods provide a snapshot of the current effectiveness of the hiring process. Analyzing these outcomes helps identify areas where skills-based hiring can make a significant difference in improving hiring efficiency and job satisfaction.
3. Develop or Update Data Collection Systems
Centralized data collection systems ensure that all agencies use standardized metrics and definitions for collecting and reporting hiring and retention data. Such standardization allows for consistent analysis and comparison across different departments and agencies. If an Applicant Tracking System (ATS) is already in place, it is crucial to ensure that it can capture skills-focused metrics, such as skill names and proficiency levels. This capability enables hiring managers to identify the specific skills and competencies that candidates bring to the table, facilitating better matches between candidates and job requirements.
Developing a state-level skills database is another important step in modernizing data collection systems. This database should track the competencies and qualifications of employees alongside their degrees. By maintaining a comprehensive record of skills and expertise within the workforce, states can make more informed decisions about hiring, training, and development. Such a database also supports career advancement and succession planning by identifying potential candidates for promotion based on their skills and accomplishments.
Ensuring alignment across agencies requires providing guidelines, support, and training on how to categorize and track applicants based on skills, experience, and certifications in addition to degrees. By equipping hiring managers with the necessary tools and knowledge, states can promote a consistent approach to skills-based hiring. This alignment not only improves the hiring process but also enhances transparency and accountability, ensuring that skills-based initiatives are implemented effectively across the public sector.
4. Conduct Skills-Based Talent Management
Implementing skills-based strategies extends beyond hiring and encompasses the entire talent management process. States must assess their current workforce needs, evaluate the availability of internal talent, and develop clear plans to fill gaps through upskilling, professional development, and recruitment. By establishing detailed performance evaluations, cross-functional exposure, and focusing on retention and advancement, states can ensure that skills-based practices enhance overall workforce quality.
Specific strategies for skills-based talent management include tailoring onboarding programs for new hires based on their skills and background, especially for those coming from non-traditional pathways. Providing mentors who can guide new employees in learning new skills and navigating organizational culture helps facilitate a smoother integration into the workforce. Additionally, offering ongoing skills training and development programs helps employees stay competitive and feel valued in their roles, ultimately promoting retention and job satisfaction.
Performance reviews should be centered around competencies and skills demonstrated rather than just task completion. Implementing regular, real-time feedback loops enables employees to receive input on how to improve and apply their skills effectively. Recognizing employees for the skills they have developed and their contributions to the organization encourages continuous learning and growth. By exposing employees to work in different agencies or departments through cross-functional collaboration, states can expand their career pathways and foster a more adaptable workforce.
5. Monitor and Improve Outcomes
One of the critical challenges of implementing skills-based hiring and talent management is ensuring that the additional costs and efforts are justified by positive employment outcomes. To achieve this, it is essential to continuously measure and monitor various metrics related to hiring, employee performance, turnover rates, and job satisfaction. Comparing roles that leverage skills-based approaches to those requiring degrees helps assess the effectiveness of the new hiring strategies and identify areas for improvement.
Regular feedback from hiring managers provides valuable insights into the skills-based hiring process and the overall job fit of candidates hired under the new policies. By assessing changes in efficiency, candidate pool diversity, fit for the role, career pathway progression, and retention, states can identify best practices and areas needing adjustments. Monitoring career progression of employees without degrees hired through skills-based practices allows for a comparison with degree-holding employees, highlighting the impact of skills-focused hiring on upward mobility.
Active updates to senior leaders and sponsors, including governors, ensure that progress reports are regularly shared to keep key stakeholders informed. Creating quarterly or annual reports that evaluate the implementation of skills-based hiring at state agencies provides transparency and accountability. By comparing progress with other states or private sector employers who have adopted similar practices, states can identify best practices and areas for improvement.
6. Implement Strategic Communication and Training
Effectively implementing skills-based hiring policies in the public sector requires strategic communication and training efforts. Developing and deploying skills-based hiring training sessions for HR staff and hiring managers ensures that they are well-equipped to apply the new approaches consistently across all agencies. Training should cover crucial topics such as creating job descriptions based on skills, assessing candidates for skills during interviews, accurately inputting data into tracking systems, onboarding new employees under skills-based practices, and communicating the value proposition of skills-based hiring.
Encouraging a culture that embraces skills-based initiatives is vital for the success of these policies. Removing degree requirements from job postings is not enough if hiring managers still prioritize candidates with degrees during the selection process. Creating a skills-inclusive culture through change management initiatives that facilitate the acceptance of skills-based hiring practices at all levels of the organization is crucial. Monitoring the implementation of these policies through consistent feedback from hiring managers and measuring the performance and job fit of candidates hired under the new policies help ensure that the strategies are effectively operationalized.
Additionally, measuring the accuracy of skill assessment results to applicant skill profiles and comparing them to prior hires recruited outside of skills-based hiring processes provides valuable insights. Tracking the retention of work-based learning participants and comparing them to overall retention rates helps evaluate the effectiveness of training and development programs. These measurements inform ongoing improvements and adaptations to the skills-based talent management process, ensuring sustained positive outcomes for the public sector workforce.
7. Share Results and Engage Stakeholders
To maximize the impact of skills-based hiring policies, it is important to share the results with the public and key stakeholders. Over time, surveying the public to assess whether perceptions of accessibility to state jobs have changed due to skills-based policies provides valuable feedback. Tracking how many individuals have learned about the new hiring practices through campaigns and how many applied as a result helps gauge the effectiveness of communication efforts.
Conducting constituent satisfaction surveys with agencies that have fully implemented and operationalized skills-based strategies helps determine the impact on business operations and service delivery. Engaging with education providers, training institutions, and workforce development programs to gauge their perception of state hiring practices aids in identifying opportunities for collaboration and improvement. Publicizing positive outcomes and success stories of skills-based hiring initiatives reinforces the benefits and encourages wider adoption of these strategies across the public sector.
By continuously monitoring public sentiment and engaging stakeholders, states can ensure the sustained support and adoption of skills-based hiring practices. Sharing success stories and positive outcomes builds momentum and encourages other public and private sector employers to explore similar approaches. Ultimately, transparent communication and stakeholder engagement contribute to creating a more inclusive and effective public sector workforce.
Creating an Action Plan for Implementation
To effectively shift towards skills-based hiring in the public sector, state leaders should establish clear and actionable strategies for collecting and utilizing skills-focused metrics and tracking key outcomes. Beginning with clear goals and collecting baseline data is essential for setting the foundation. By defining the aims of the skills-based hiring policy shifts and establishing metrics that align with these goals, states can ensure a focused and measurable approach.
Centralizing data collection and updating data systems to capture skills-focused metrics is crucial for consistent analysis and reporting. Developing state-level skills databases and aligning guidelines across agencies fosters transparency and accountability in implementing skills-based hiring practices. Regular training sessions equip HR staff and hiring managers with the necessary tools and knowledge to apply these strategies effectively. Monitoring and sharing progress through regular reports and engaging with public and private sector stakeholders ensure ongoing support and collaboration.
By adopting a proactive mindset focused on measurement, analysis, and strategic communication, states can harness the full potential of skills-based hiring. This approach not only addresses workforce shortages but also cultivates a more dynamic, diverse, and adaptable public sector workforce. Continuous improvement and clear action plans enable states to effectively track the progress of skills-based hiring and demonstrate the efficacy of these practices in enhancing government operations and service delivery.
Conclusion
The public sector is crucial in promoting skills-based strategies, driven by leadership at the gubernatorial level. States and territories, whether just starting or advanced in adopting these policies, continue to innovate. Skills-based hiring redefines talent acquisition by focusing on a candidate’s skills, competencies, and relevant experience rather than traditional qualifications like degrees. This approach mitigates two main flaws in traditional hiring: the risk of poor job matches when degrees are used as the primary filter, and the limited candidate pool when degrees or specific titles are strictly required. While implementing skills-based hiring can add complexity, its benefits—better job matches, less turnover, and higher job satisfaction—are substantial. Additionally, it promotes career mobility and a more inclusive workforce, positively impacting the overall economy.
State and territory governments are leading this shift, with many enacting legislation to prioritize skills and experience over degrees. This change not only broadens talent pools but also addresses workforce shortages and promotes diversity. Early data shows states adopting skills-based policies have more job postings that don’t require degrees, making public sector jobs more accessible to those with non-traditional backgrounds. Governments are motivated to lead this change due to significant workforce gaps. As the workforce ages and participation declines, attracting skilled workers becomes critical. Skills-based hiring can close these gaps, improve job fits, and enhance public services. States like Maryland, Colorado, Pennsylvania, and Massachusetts have made significant progress by removing degree requirements, resulting in reduced vacancy rates and better job fits. As states continue this trend, skills-based hiring is set to become a model for employers aiming to attract and retain a diverse, skilled, and adaptable workforce.
