According to US Census Bureau, less than 38% of Americans aged 25 and older hold a bachelor’s degree. That means the paper ceiling potentially impacts more than 62% of the US workforce, the brunt of which is felt by minority groups. For example, just 26% of Black workers have college degrees when compared to 40% of white workers.
Within the staffing industry, we are well aware that the shrinking talent pool is making it tougher to source workers. , and many employers have started to focus on skills-based hiring rather than educational qualifications or pedigree. A skills-based hiring approach can help diversity, equity and inclusion efforts by sidestepping old structures and circumventing unconscious bias by providing access to a broader and more diverse pool of candidates.
According to recent research from Hays, nearly half of employers in the UK (45%) say it is no longer necessary that a job applicant has a degree. The research showed that 39% of organizations say a degree is necessary but not essential when hiring. In comparison, only 16% say having a degree is essential, according to research based on a survey of nearly 15,000 professionals and employers.
And sizeable companies are taking the plunge. For example, Google, Delta Airlines, Accenture and Zoho have already removed many degree requirements from job postings. This mindset change enables organizations to hire from minority-represented demographics more easily. Meanwhile, Google and Accenture are among the businesses partnering with Opportunity@Work, an organization whose mission is to rewire the US labor market so individuals skilled through alternative routes – dubbed STARs — can work, learn and earn to their full potential. The STARs program supports individuals from various backgrounds: veterans, underrepresented talent and other skilled workers without college degrees.
Tearing through the paper ceiling and fostering diversity, equity and inclusion in the workplace requires a systematic and comprehensive approach. The following checklist can help organizations implement necessary changes:
1. Secure critical stakeholder buy-in. Meet with senior leadership to communicate the importance of DE&I initiatives and gain executive commitment for allocating resources and implementing changes.
2. Identify and address internal barriers. Conduct an audit of current policies, practices and culture to identify diversity and inclusion barriers and address systemic issues such as biased hiring practices, lack of diversity in leadership and unequal access to opportunities.
3. Evaluate and select roles. Analyze existing roles and responsibilities to identify areas where diversity and inclusion can be improved and determine which roles are critical for promoting organizational diversity and inclusion initiatives.
4. Identify internal mobility pathways. Identify opportunities for employees from underrepresented groups to advance within the organization and cCreate pathways for career development and advancement accessible to all employees.
5. Rewrite job descriptions. Review and revise job descriptions to remove biased language and ensure inclusivity and clearly define job requirements and qualifications to attract diverse candidates.
6. Identify new recruitment sources for each role. Expand recruitment efforts to reach a broader, more diverse pool of candidates and partner with organizations and networks that specialize in recruiting diverse talent.
7. Set up internal application/transfer process. Establish a transparent and accessible process for internal candidates to apply for new roles or transfer and provide resources and support for employees navigating the internal hiring process.
8. Establish and enforce new screening and interview norms. Train hiring managers and interviewers on best practices for conducting inclusive interviews and implement standardized interview questions and evaluation criteria to minimize bias.
9. Devise a new onboarding process. Develop onboarding processes that emphasize the organization’s commitment to DE&I and provide training and resources for new employees.
10. Update review or feedback processes. Review performance evaluation processes to ensure fairness and equity and provide regular feedback and opportunities for development for all employees.
11. Compile metrics at regular intervals. Establish key performance indicators (KPIs) to measure diversity and inclusion initiative effectiveness and collect and regularly analyze data on diversity metrics, employee satisfaction and retention rates.
Another organization championing a skills-first approach to hiring is LinkedIn. LinkedIn data shows that such hiring would drive gender balance across the workforce. In fact, it can have a 27% greater impact on women than men, meaning that more women would be seen as prospective candidates for a role when assessed based on relevant skills.
When you implement skills-based hiring, its benefits can ripple throughout the hiring process, from diversifying the talent pool to improving retention rates, as well as positioning your workforce as a competitive advantage. Opportunity@Work has created a playbook details even more advantages, while also advising organizations on strategies to remove the paper ceiling and attract, retain and engage a more diverse workforce.
People in the early stages of their careers can also benefit as skills-based hiring helps them get more work experience. Globally, it could expand the talent pool for Gen Z workers more than 10-fold — and in the UK, the impact on Gen Z would be 19% larger than on Gen X workers, LinkedIn data shows. Matching candidates by skills not only has the potential to help people find roles that suit them best but may also have knock-on benefits for social mobility.
More information on DE&I in the workforce solutions ecosystem is available in SIA’s Diversity, Equity & Inclusion Trends in Staffing 2024 report.
