Skills-Based Hiring in the Flexible Workforce: Strategies for UK SMEs

Introduction

In an era where the flexible workforce is increasingly vital for UK SMEs, skills-based hiring emerges as a transformative strategy, focusing on candidates’ abilities rather than formal qualifications. This approach not only addresses persistent recruitment challenges but also promotes inclusivity and efficiency, particularly in hourly staffing scenarios. By exploring how to blend human skills with AI-driven tools, this article provides actionable insights to help your business thrive in a hybrid model, complementing our discussions on AI in recruitment available

Understanding Skills-Based Hiring

Skills-based hiring prioritises a candidate’s practical abilities, experience, and potential over academic credentials or previous job titles. This method is gaining traction across the UK, with adoption rising by 63% since 2022, as businesses seek to future-proof their teams.

The Shift from Traditional Qualifications to Skills

Traditionally, recruitment has relied on degrees and certifications, often excluding talented individuals from diverse backgrounds. However, with 26% of SMEs anticipating recruitment issues in 2025 due to skills mismatches, there’s a clear pivot towards evaluating transferable skills like adaptability and problem-solving. For flexible workforces, this means assessing candidates on their ability to handle variable hours and tasks effectively.

Benefits for the Flexible Workforce

Adopting skills-based hiring offers numerous advantages, especially for SMEs managing hourly staff.

• Wider Talent Pool: By removing degree barriers, businesses can access a broader range of candidates, including career changers and self-taught experts, reducing time-to-hire by up to 82%.
• Enhanced Inclusivity: This approach minimises biases, boosting diversity, with 91.1% of companies reporting higher diversity leading to 35% greater profits.
• Improved Efficiency: Skills-focused recruitment cuts costs by nearly 90% and speeds up hiring by over 91%, ideal for flexible staffing needs.
• Better Retention: Employees hired for skills are 98% more likely to stay and perform well, addressing retention concerns for 27% of SMEs.

In hourly roles, these benefits translate to quicker onboarding and more adaptable teams.

Practical Strategies for Implementation in Hourly Staffing

To embed skills-based hiring, UK SMEs should start with targeted actions tailored to flexible work.

Revamping Job Descriptions

Rewrite postings to emphasise essential skills, such as time management for hourly shifts, rather than qualifications. Avoid exhaustive lists; focus on core competencies to attract relevant applicants.

Using Skills Assessments

Incorporate practical tests, like scenario-based exercises, to evaluate abilities objectively. Tools from platforms like TestGorilla can streamline this, reducing mis-hires by 88%.

Structured Interviews and Transferable Skills

Employ behavioural questions to identify traits like resilience and empathy. For hourly staffing, screen for flexibility and quick learning, widening the pool without degree filters.

Training Hiring Managers

Educate teams on competency-based evaluation, ensuring alignment with business needs. Consider apprenticeships or Skills Bootcamps, with 70% of SMEs planning upskilling investments.

For more on our flexible staffing solutions, visit staffnow

Integrating Human Skills with AI in Hybrid Models

While AI enhances recruitment, human skills remain crucial in hybrid setups. Use AI for initial screenings but rely on skills-based assessments for final decisions, addressing AI-related skills needs noted by 23% of SMEs. This balance emphasises empathy and creativity, complementing automated processes. 

Overcoming Challenges

Common hurdles include identifying skills gaps (use ontologies for mapping) and resistance to change. Start small with pilot programs to demonstrate value.

Conclusion

Skills-based hiring revolutionises recruitment for UK SMEs in the flexible workforce, offering efficiency, inclusivity, and a competitive edge. By focusing on abilities over credentials and integrating with AI, businesses can build resilient teams ready for future challenges. Key takeaways include widening talent pools, reducing costs, and fostering diversity through practical strategies like assessments and upskilling.

Take the Next Step: Transform Your Hiring Today

Ready to implement skills-based hiring and optimise your flexible workforce? Contact Staffnow for tailored support and discover how we can help your SME thrive. Visit https://staffnow.uk/contact to get started.

Frequently Asked Questions

Navigating skills-based hiring can raise several queries, especially for UK SMEs adapting to flexible staffing. Below, we address some common ones to guide your implementation.