How do you measure the success of skills-based recruitment?

At ORARA Group, we understand the importance of quantifying the impact of our strategies to demonstrate their value and drive continuous improvement.

When evaluating the effectiveness of skills-based recruitment, we look beyond traditional metrics and dig deeper into the outcomes that matter most to our clients. Reduced mis-hires are a key indicator, with 91% of employers using skills-based recruitment reporting fewer instances of poor fit. This translates to significant cost savings. The REC found that for every bad hire, an average of £9,730 is lost in recruiting and training costs, plus an additional £9,625 in lost productivity.

But the benefits extend far beyond the bottom line. Businesses consistently report more diverse and inclusive workforces, with 94% seeing improvements in this area. By focusing on skills rather than background or credentials, we help organisations tap into previously overlooked talent pools and create more equitable opportunities for all.

Retention and tenure are also critical measures of success. Skills-based hires stay 9% longer than their traditionally hired counterparts, bringing stability and continuity to their teams. This is further evidenced by the fact that 94% of employers experience improved overall retention after adopting skills-based recruitment methods.

Equally important is the quality of hire. In a recent article by BCG, they quoted the American Psychological Association, which found that skills are five times more predictive of job performance than education alone. This is reflected in the promotion rates of skills-based hires, which are nearly on par with those of traditional hires. By prioritising skills, organisations can build high-performing teams that drive innovation and excellence.

Satisfaction is another key metric we track. 86% of employees believe that skills-based hiring improves their chances of landing their dream job, while 92% of employers using skills assessments report greater satisfaction with their hires. This mutual benefit underscores the power of aligning talent with opportunity based on capability rather than pedigree.

To measure these outcomes, we work with our clients to establish clear benchmarks and track progress over time. By comparing key metrics before and after the implementation of skills-based hiring, surveying stakeholders, and analysing the performance of skills-based hires, we paint a comprehensive picture of the impact our strategies have on organisations and individuals alike.

As the world of work continues to evolve, skills-based recruitment offers a promising path forward. By focusing on the metrics that matter and leveraging data-driven insights, we can unlock the full potential of this approach and help our clients build thriving, future-ready workforces.