Singapore should adopt skills-based talent hiring and development

A GLOBAL move into the digital realm has sped up the growth of the technology-driven parts of Singapore’s economy.

From simple activities such as online shopping and virtual business meetings to more complex artificial intelligence applications, the expansion of the tech sector has changed the workforce and created new jobs.

A transformation of business models and technological infrastructures is not only necessary if companies are to cater to consumers’ demands, but also represents a significant opportunity for growth.

The best strategy for businesses is to embrace this change and employ talents who are well-versed in digital platforms.

Unfortunately, the talent pool is not growing rapidly enough to meet the demands of the labour market. A Korn Ferry study estimated that by 2030, there will be a global talent shortage of nearly 85 million. This is almost 16 times the current Singapore population.

Left unaddressed, this looming talent crisis will result in profit loss and talent stagnation. It also poses a significant threat to the future of our economy. Policymakers and business leaders must take immediate action.

The talent shortage is exacerbated by the outdated and ineffective hiring practices of many companies. Their reluctance to look beyond traditional requirements, which are often unmet by job seekers and career shifters, is a clear barrier to finding the right talent.

Organisations must rethink talent development and shift from a focus on qualifications to a focus on skills. Skills-based approaches in hiring will promote hiring efficiency, improve the work environment and ease upskilling practices.

Lower barriers for jobseekers, faster hiring for employers

Traditional modes of education are increasingly insufficient to keep pace with the needs of the tech ecosystem. A university degree does not automatically translate into the applicable skills needed for ever-evolving scopes and responsibilities.

Yet, a university degree in a specific discipline is often required to apply for a position. If you want to be a coder, for example, you must have an IT-related degree.

Such requirements are limiting and often discourage talent from venturing into higher-value tech roles, as they fear their educational backgrounds do not fit the job requirements.

What matters more in a real-world situation are the skills to do the job, and companies should adopt a skills-based approach or assessment to determine one’s qualifications for a role.

Fortunately, the move towards skills-based experience is becoming more recognised and slowly becoming a norm.

LinkedIn’s Skills Path initiative, for one, encourages hiring based on skills instead of educational qualifications or experience. Several large companies, including CapitaLand, Lazada, and OCBC, have signed on to this initiative, which the National Jobs Council supports.

Amid a tight labour market, in which attrition rates are rising, shifting away from educational qualifications could accelerate the hiring process. It would also grant employers access to a larger and more diverse talent pool.

Show, not tell: A new approach to hiring

Companies should also assess both hard and soft skill competencies. In evaluating a candidate’s suitability, it is necessary to look for attributes such as critical thinking, adaptability, emotional intelligence and cultural awareness.

To implement this, a deliberate effort is needed to educate, raise awareness, and foster a cultural shift among hiring professionals.

This shift should prioritise skills-based interview questions and assessments, which may include technical and scenario-based tests to evaluate candidates and ensure alignment with job roles.

Asking candidates to show, not tell, will be especially effective in hiring for technical positions. Companies could utilise testing platforms or even internally customised tools for candidate evaluation.

The practice of skills-based hiring enhances the hiring process and enriches the overall dynamics of the company. As more employees are recruited based on their skills, there will be a natural inclination to hire those possessing the skill sets that the team values.

Healthier work culture and environment

The tech industry has suffered a bad reputation in recent years. Having made headlines for massive layoffs, it is now being associated with burnout and stress.

Many tech employees struggle with imposter syndrome, doubting their abilities to do their jobs. Eventually, they become unproductive and develop low morale.

Individuals hired based on their skills, however, tend to be more motivated, knowing that their work and expertise are valued by organisations.

Skills-based evaluation also benefits employees as they can more easily understand how to advance and move into higher-value roles within their employers’ organisations. This increased employee retention and engagement is crucial for employee satisfaction and reducing attrition rates.

A national paradigm and cultural shift

Rapidly advancing technologies make workers worry about falling behind in skills and knowledge. The World Economic Forum foresees almost half of the workforce will need to reskill by 2025 in response to the emerging advances in technology.

To keep up with the pace of digitalisation, both employees and organisations should invest in programmes that will develop the skill sets of people and the overall capabilities of the business.

While it is widely recognised that training, learning, and development are ways to ensure employees stay relevant, it may be challenging to figure out which courses are worth the investment of time and effort.

To combat this hesitancy, there should be a shift in our mindsets and in the human resources framework. This includes wide-scale recognition of micro-credentials obtained outside university walls – through online learning platforms such as Coursera and Google, for example.

The skills-based approach will only be successful if all organisations are guided by shared standards. This is why trade associations such as SGTech are actively promoting a collaborative approach between the public and private sectors to shape skills assessments across various technology sectors and job positions.

While industry interventions are important tools, however, their true impact is realised through a positive shift in organisational mindset and, ultimately, cultural mindset.

The importance of tech for business transformation will endure and will continue to fuel job growth in the coming years.

Our tech ecosystem will only remain resilient if we continue to adopt practices that ensure we are on par with its advancements. This includes rethinking and reinstitutionalising skills-based practices within the tech ecosystem and, ultimately, within the economy.

Asher Ling is chief technology officer and managing director, Singapore, at data centre provider Princeton Digital Group and a member of the talent steering committee at trade association SGTech. Sharon Teo is co-founder and chief executive of software company Inspire Tech and honorary treasurer of SGTech.