Indeed’s latest Smarter Hiring Report highlights a pressing issue in Singapore’s recruitment landscape: the traditional reliance on resumes and qualifications may no longer be the most effective way to assess candidates. The report advocates for a shift towards skills-first hiring, which prioritises a candidate’s potential and ability to perform rather than past experience or academic credentials.

Singapore’s job market presents challenges for both job seekers and employers. More than half of job seekers report difficulties in securing roles, while businesses struggle to find candidates with the required skills.

The issue is not necessarily a lack of talent but rather an inefficient hiring system that leans too heavily on outdated selection criteria such as degrees and past roles.

Employers in Singapore have historically prioritised qualifications, with some even increasing their degree requirements. However, the report reveals that 73 per cent of job seekers and 70 per cent of employers value on-the-job experience over formal education.

This suggests a growing recognition that practical skills and hands-on experience contribute more to job performance than academic credentials alone.

Rethinking the role of resumes

Resumes have been a staple of recruitment for centuries, but their effectiveness is now being questioned. While they remain useful in providing a snapshot of a candidate’s background, they primarily focus on past achievements rather than future potential.

The report asks whether companies are hiring “people or paper,” highlighting the risk of missing out on qualified candidates who may lack traditional credentials but possess the right skills and mindset.

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An overreliance on resumes and qualifications creates a “broken system” where job seekers struggle to meet unrealistic role requirements, and employers fail to find suitable talent. By shifting the focus to skills, organisations can bridge this gap and build a more efficient hiring process.

The report strongly advocates for hiring based on human potential rather than just credentials. This means looking beyond hard skills and placing greater emphasis on soft skills such as adaptability, resilience, and a motivation to learn. These qualities are essential in today’s fast-changing work environment, where employees must continuously adapt to new challenges and technologies.

Indeed’s findings show that 70 per cent of employers already value soft skills more than hard skills in a skills-first hiring approach. This underscores the importance of identifying candidates with transferable skills who can grow and evolve within the company.

A skills-first approach allows employers to tap into a wider talent pool by considering candidates who may not have conventional qualifications but possess the necessary abilities, which are often excluded by traditional hiring practices. By focusing on skills, companies can unlock hidden talent and improve workforce diversity.

Additionally, this approach makes the hiring process more equitable by reducing barriers for job seekers.

Singaporean job seekers increasingly prioritise growth and development opportunities when considering roles. According to the report, 79 per cent of job seekers view learning opportunities as a key factor in their job search. Some are even willing to accept lower pay if the role offers better prospects for skills development.

A skills-first approach aligns naturally with these expectations. By assessing candidates based on their growth potential, companies can attract talent eager to develop and contribute meaningfully to the organisation’s long-term success.

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Leveraging tech for smarter hiring

Tech, particularly artificial intelligence (AI), presents an opportunity to enhance skills-first hiring. AI-powered platforms can match candidates to roles based on their actual capabilities rather than relying solely on resume keywords.

Indeed, for example, uses AI to personalise job recommendations for seekers and provide insights for employers, improving hiring efficiency.

Employers can also use AI-driven assessments to evaluate a candidate’s suitability for a role based on their skills and behavioural traits. These assessments can measure problem-solving abilities, adaptability, and communication skills, providing a more comprehensive picture of a candidate’s potential beyond what a resume can convey.

For companies looking to adopt a skills-first approach, the report suggests several key strategies:

Redefining job requirements
Employers should focus on identifying essential skills rather than rigid degree or experience requirements. This ensures job descriptions reflect the actual competencies needed for success.

Prioritising soft skills in evaluations
Hiring managers should explicitly assess soft skills such as adaptability, problem-solving, and communication, which are crucial for long-term success.

Using behavioural-based interviews
Structured interview questions can help gauge a candidate’s soft skills by asking them to describe past situations where they demonstrated resilience, collaboration, or problem-solving abilities.

Investing in ongoing development
Companies should provide opportunities for continuous learning, ensuring employees can build on their skills and stay relevant in a rapidly evolving job market.

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Image Credit: Jason Goodman on Unsplash

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