“Fifty-three percent of business leaders report facing challenges in recruiting non-managerial employees with the skills, training and education their companies need.”Source: Civic Enterprises and Corporate Voices for Working Families. Across the Great Divide Perspectives of CEOs and College Presidents on America's Higher Education and Skills Gap. 2011.
The City of Albuquerque, in partnership with Innovate+Educate, is using a job skills assessment tool called ACT’s WorkKeys® to increase job opportunities for its young citizens without a high school or college degree.
“Year Up employees are better prepared professionally than some of the graduates from Yale we’re hiring.”
- Corporate Leader
Many innovative employers, such as the City of Albuquerque (in partnership with Innovate+Educate), are embracing a skills-based hiring method to identify and sustain high-quality talent that’s often been overlooked by traditional hiring practices.
Because the majority of jobs across the U.S. require skills not always identified by a college diploma, skills-based hiring can create a more effective match between employer and employee. Research suggests that skills-based hiring includes benefits such as:
Research has shown that employers who hire by skill scores (“skills-based hiring) experience a 25 to 75 percent reduction in turnover, a 50 to 70 percent reduction in time to hire, a 70 percent reduction in time to train and many other benefits. (Headquartered in New Mexico, Innovate+Educate uses a skills-based hiring approach to increase job opportunities for young people without a high school or college degree.)
UPS worked with education providers to create Metropolitan College, which serves as a recruitment and retention strategy for the company. The college also gives its employees access to continuing education—a move that resulted in a 50 percent decrease in turnover and a greater number of educated, skilled employees with long-term career pathways ahead of them.
“You’re dealing with candidates that are sometimes nontraditional. They come from different cultures. English is sometimes their second language. And a lot of them leave work and they either go to a second or third job or they have children, which is not the traditional entry-level individual that has come into the past.”
- Richard Curtis, vice president of talent acquisition, State StreetSource: Richard Curtis. Speech. Close It Summit 2013. Washington, D.C. November 5-7, 2013.
Stepping Up, an employer-led partnership comprised of healthcare, labor, education and community organizations, created a track of underemployed adults, including opportunity youth, who are placed in entry-level healthcare positions. More than 70 percent graduated from the community pipeline program and received jobs.
By connecting with industry and higher-education partners, Pacific Gas & Electric Company’s (PG&E) PowerPathway™ is a network of education and training programs that customizes its workforce and has generated a 3-to-1 return on investment.
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