Skills-based Approaches for Finding Talent and Diversifying the Workforce: Six Lessons from Employers

Securing the right talent is crucial for every employer. Especially challenging in a tight labor market, it is a perennial issue for certain industries, occupations, and geographies. At the same time, persistent employment outcome disparities exist. The labor mismatch—where current job seekers’ credentials, or lack thereof, do not match employer job requirements—has prompted a widening trend in which employers have shifted from prioritizing degrees in favor of evaluating potential workers based on their transferable skills. The adoption of skills-based practices offers a practical solution to many of today’s key workforce challenges while lifting barriers to career pathways for more people. With only 28 percent of African Americans and 20.6 percent of Latinos holding at least a bachelor’s degree, compared to 38 percent of White Americans, requiring a college degree disproportionately affects people of color.1 This article highlights ways employers focus on skills over traditional degrees and credentials in job descriptions, recruiting, and retention practices, and what they have learned.