There is a flaw in the labor market that prevents skilled applicants from getting jobs. For example, nearly 70% of new jobs require a bachelor's degree, but fewer than 50% of workers have one. This means that 70 million people in America are being held back by this silent limitation. It's time to tear the paper ceiling and see the world beyond it.
Hiring practices that only consider people with a bachelor's degree, those who come from personal referrals, or other similar criteria exclude a lot of qualified candidates. This is called the "paper ceiling."
The paper ceiling: (n) the invisible barrier that comes at every turn for workers without a bachelor’s degree. See also: no alumni network, biased algorithms, degree screens, stereotypes, and misconceptions.
A skills-based hiring focuses more on what a candidate can do, rather than where they went to school or what their experience is. This approach starts with finding the skills required for a job and testing for them. Then companies can identify the ideal candidate by using a variety of skills assessments. This is a good way to find the best candidate for a job, especially for people who may not have a lot of experience or who come from a different background.
Skills-Based Hiring is Increasing
There is a trend of employers hiring based on skills instead of degrees. This study shows that companies are more interested in candidates who have the right skills for the job, regardless of where they went to school.
A study found that more companies are hiring based on skills instead of degrees. This is because they want to find talented employees (STARs) who can do well in the company. Also, companies are making it easier for their current employees to move up in the company.
Consider the career trajectory from cashier to customer service representative to a business-to-business salesperson: each role builds on the skills needed for the previous role, and each offers higher wages and more opportunities for growth. This is just one example where skills-based hiring can help identify overlooked talent, while enabling upward mobility.