For skills-first hiring to be successful, employers need to have a clear vision, empower their leaders and create a supportive budget, according to a new case report from OneTen.
OneTen, a coalition of companies focused on unlocking career opportunities for talent without four-year degrees, took an in-depth look at Cisco’s efforts to adopt a skills-first hiring approach.
“We’re proud that Cisco has joined the over 60 partner organizations in supporting OneTen and of the progress we’ve made as part of the coalition,” Chuck Robbins, chair and CEO of Cisco, said in a statement. “Together, we aim to upskill, hire and advance Black talent, and others, without four-year degrees. We recognize this as an important step toward a more inclusive future.”
After joining OneTen in 2021, Cisco shifted from a traditional degree-based hiring model to a skills-focused model that incorporates competencies, experience and potential regardless of a job candidate’s educational credentials. The skills-first strategy expanded Cisco’s talent pipeline and led to a 96% retention rate among skills-first hires, OneTen found.
As part of the implementation, Cisco leaders set a clear vision and values, examining the company’s role in advancing workforce equity and addressing challenges for underrepresented workers. They set a purpose for skills-first hiring — to create an agile workforce that could be responsive to the company’s business needs.
In addition, Cisco selected leaders with the relevant personal and professional experience to guide the skills-first hiring efforts. These leaders created alignment with equity goals and fostered a culture where four-year degrees weren’t seen as a determinant of success.
Cisco leaders then centralized funding for the skills-first hiring program and built buy-in among other senior leaders and hiring managers. In particular, they created comprehensive support for hiring managers to give them the confidence to recruit based on skills.
After that, Cisco used a “OneTen cohort” model to prioritize the needs of new talent and create a sense of community among new hires. Cisco also measured vital metrics, including retention, promotions and skills alignment, to ensure hires had room to grow and could change positions as needed to avoid turnover.
For additional insights, the Business Roundtable has released three skills-based hiring guides to share strategies and case studies from companies such as Accenture, Bank of America and SAP. Although employers may understand the benefits of skills-based hiring, many struggle to fully implement it.
Leveraging talent for skills-based hiring and greater flexibility can be particularly helpful in industries such as manufacturing, panelists said at the 2024 Women in Manufacturing Conference. Flexible options can include seasonal work, part-time roles and accommodation of life-related transitions, such as having children.
In general, employers aren’t adopting skills-based hiring quickly enough to meet demand, especially for tech roles, according to a General Assembly report. To overcome the gap, though, companies can focus on in-house training and nontraditional approaches such as apprenticeships and bootcamps.
