Dropping degrees and embracing skills: How to tackle the technology skills gap

“Do you need a degree to work in tech?”

That’s the question that the BBC posed recently in a feature exploring how businesses are looking to tackle the digital skills gap.

The skills crisis is biting hard, but the issue is particularly acute in the digital world.

Salesforce's 2022 Global Digital Skills Index revealed that the global digital skills readiness score is just 33 out of 100, with 64% of managers reporting that their employees are not able to keep pace with future skill needs.

As outlined in BBC’s piece, companies are finding it particularly hard to fill entry-level roles - but one way that organisations are responding is to start hiring individuals without degrees.

This is a great way of widening the talent pool and recruiting a more diverse workforce, and is a tactic that is being adopted by IBM.

Research by The Burning Glass Institute reports that only 29% of IBM's listings for a Software Quality Assurance (QA) Engineer in the US require a degree. This compares to between 90% and 100% at many of the other big tech companies.

"They're behind the curve," Robin MacDonald, Director at tech recruitment company Harvey Nash told the BBC. "They just haven't changed their ways. They'll have to. There's no reason a QA needs to have a degree to do that job. We can train those people in months."

But while widening the net increases the available talent, how do you ensure that your rates of hiring success don’t plummet as a result? If you’re not using educational credentials as your recruitment North Star, what are you using instead?

Can skills-based hiring solve the digital skills gap?

A growing number of tech firms, including IBM, are adopting a skills-based approach to recruitment to identify the soft (behavioural) skills that are key to success in the role.

Research by LinkedIn reveals that a skills-first approach can widen the talent pool by 9x for those without bachelor’s degrees.

Crucially, however, not only does it enable organisations to widen the talent pool, but it also reduces failed hires. So not only does a skills-based approach remove the risk associated with dropping degrees from job requirements, it actually improves the hire success rate. Research from McKinsey has indicated that hiring for skills is five times more predictive of job performance than hiring for education and more than two times more predictive than hiring for work experience.

To learn more about skills-based hiring, read our introduction to the topic here. 

Spotted Zebra empowers organisations to respond to the skills gap crisis through our skills intelligence platform. 

As part of the Spotted Zebra platform, we provide a skills-based hiring solution that enables organisations to identify and focus on the behavioural and technical skills that are key to success in specific roles. We then provide support so that candidates can be assessed and rated according to their fit for a particular role skills profile. 

Beyond that, Spotted Zebra also assesses the quality of fit that individuals have with an organisation in terms of values and culture, and also assesses whether the individual has the right skills to grow with the organisation over time. 

The results of this are dramatic. 

Our data shows that high performers on Spotted Zebra assessments reach competence 20% faster, and are 2x more likely to be rated as top performers in their role.

If you'd like to review your strategic workforce plan, our experts are available for a Skills Strategy Lunch and Learn. Click here to learn more and reserve a session for you and your team.

FAQs

1. How can companies ensure the effectiveness of a skills-based hiring approach in identifying the right candidates for tech roles?

Companies can ensure the effectiveness of a skills-based hiring approach by:

• Developing clear skills profiles: Creating detailed and specific profiles for each role that outline the necessary technical and behavioural skills.
• Utilising assessment tools: Implementing robust assessment tools, such as those provided by platforms like Spotted Zebra, to objectively evaluate candidates' skills.
• Continuous calibration: Regularly updating and calibrating the assessment criteria based on the evolving demands of the role and industry standards.

2. What specific behavioural and technical skills are most important for entry-level tech positions, according to current industry standards?

For entry-level tech positions, the most important skills typically include:

• Technical skills:
  • Basic programming and coding skills in languages such as Python, Java, or JavaScript.
  • Understanding of software development methodologies, such as Agile or Scrum.
  • Familiarity with version control systems like Git.
  • Basic knowledge of databases and SQL.

• Behavioural skills:
  • Adaptability and willingness to learn.
  • Strong communication and teamwork abilities.
  • Attention to detail and a methodical approach to tasks.
  • Critical thinking and analytical skills.
  • Time management and organisational skills.

3. Why is important that candidates are aligned with the organisation's culture and values?

Alignment is important because:

• Enhanced engagement: Employees who align with the company’s culture and values are generally more engaged and motivated.
• Better team dynamics: Cultural alignment helps in fostering a collaborative and harmonious work environment.
• Reduced turnover: Employees who fit well with the organisational culture are more likely to stay longer, reducing turnover rates.
• Improved performance: A strong cultural fit often leads to higher job satisfaction, which can translate to better performance and productivity.

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