In the AI era, soft skills must be included in a multi-measure approach to skills-based hiring

02/07/2024

THIS year, the vast majority of employers say they are using Artificial Intelligence (AI) with their workforce, which is reflected in their hiring criteria. At the same, employers are seeking candidates with soft skills that AI cannot replicate. This is creating a new dynamic which requires a multi-measure approach to skills-based hiring – and employers who take this approach are seeing outstanding results.

These are the findings identified in talent discovery platform TestGorilla’s latest annual report: ‘The State of Skills-Based Hiring 2024’.

Surveying over 2,000 employers and employees across regions including the US, UK, Australia, Europe and Latin America, the report sets out the hiring landscape for 2024. One of the overarching findings is that, in line with the rise of AI adoption rates, employers are reporting an increasing need for human-centric soft skills that cannot be replicated by this technology.

This is reflected by increasing rates of businesses utilising some form of skills-based hiring. In its report, TestGorilla found that 81% of employers are using skills-based hiring in 2024, up from 73% last year and 57% in 2022.

For the first time, the report findings point to multi-measure testing as the optimal approach to skills-based hiring.

Multi-measure testing involves combining different skills-based tests and assignments to measure multiple job-relevant skills. This enables employers to equally assess candidates for both soft skills and technical skills (including AI-related ones) to secure the ideal employee.

According to TestGorilla’s report, 40% of employers who use skills-based hiring are doing multi-measure testing. 92% of those employers stated they are more satisfied with their hires and are seeing improvements in employee retention, diversity and costs to hire:

  • 91% reduced mis-hires
  • 83% reduced cost-to-hire
  • 94% improved diversity
  • 94% improved retention

Commenting on the rising need for soft skills in the AI era, TestGorilla CEO and co-founder Wouter Durville, said: “It is evident that skills-based hiring is best suited recruitment method for businesses and employees embracing the future of technology through AI. Our annual report continues to show a year-on-year increase as more employers are reporting the benefits as they move away from traditional recruitment methods.

“For years employers have known that the top employees possess a variety of soft skills. As new technologies emerge and hybrid working rates continue to rise, there is an increasing need to identify and develop soft skills.

“The findings in our latest report display how employers can maximise recruitment efforts through a multi-measure approach. Pinpointing candidates that offer both technical AI-related skills and the required human soft skills that will ensure success.”

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