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As we approach the new year, I find myself reflecting on the current state of my organization, assessing broader market trends in our industry, and planning for the year ahead. Along the way, I even sharpen a few pencils, metaphorically speaking.
One thing that has stood out during my review this year is the increasingly tricky employment market and the challenges facing both hiring organizations and job seekers. Margins are tightening, job growth is projected to slow through 2025, and unemployment is on the rise. On top of that, finding the right candidates for the right roles remains a persistent challenge.
A recent survey of independent insurance professionals by Vertafore revealed that 40% of hiring managers are struggling to find enough candidates, and more than half are dealing with underqualified applicants. At the same time, job seekers feel that the market is working against them. According to Forbes, over 70% of job seekers believe it’s difficult to find a job right now, citing fewer openings and shifting employer expectations.
What truly surprised me, however, was this statistic from Vertafore’s survey: one-third of independent insurance professionals entered the industry after working in another field. This means a significant portion of successful individuals in insurance may not have had the “right” keywords or experience listed on their resumes based on traditional job descriptions—but they are thriving nonetheless.
This points to a major opportunity for improvement in our hiring practices. The solution? Skills-based hiring.
What is skills-based hiring?
It’s the practice of evaluating candidates based on their skills and experience rather than traditional qualifications like specific degrees or years in a particular role. Instead of screening candidates with criteria like “a bachelor’s degree in business or finance” or “a minimum of 5 years of experience as a claims adjuster,” job postings would focus on requirements such as “strong analytical thinking and the ability to assess complex information” or “proven success in negotiating settlements.” The technology used to craft job posts and filter candidates would also be aligned with this skills-focused approach.
Skills-based hiring not only widens the talent pool for organizations struggling to find qualified candidates, but it also has the potential to improve the quality of hires. According to Vertafore, skills-based hiring can:
- Attract candidates from diverse educational and professional backgrounds, bringing fresh perspectives and improving client representation;
- Better match employees to roles, leading to higher engagement and job satisfaction;
- Reduce unconscious bias and foster more objective hiring processes;
- Create a more adaptable and flexible workforce.
It’s a no-brainer: we need to embrace skills-based hiring to ensure we build the most productive and engaged teams. But if your organization isn’t yet using this approach, how do you get started?
First, identify the core competencies required for each role you’re hiring for, and update your job descriptions to focus on these skills. Then, revise your hiring process to assess candidates based on these competencies, using both technology and interviews to evaluate their potential.
This is where WAHVE excels. Our Talent Acquisition Outsourcing model combines AI-powered technology with human-led interviews, making skills-based hiring easy and effective. In fact, we boast a 90% success rate—nearly double the industry average.
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