Skills-based hiring can create opportunities to negotiate higher pay rates for in-demand skills or build a portfolio of experience across industries.COURTESY OF CALGARY ECONOMIC DEVELOPMENT
Agilus Work Solutions is a coast-to-coast recruitment firm that helps place around 10,000 hires a year. Recently, it worked with a large retail client looking to shake up its staffing approach. The company had always relied on full-time, in-house employees to handle infrastructure and tech projects – but this strategy had strained budgets and led to retention issues, since their pay rates couldn’t keep up with market demands.
Agilus suggested a different strategy: Instead of sticking to the old model, they suggested blending two permanent hires with a team of skilled contractors. The result was transformative. The contract-based team delivered the project on time and within budget, while the permanent hires provided continuity for ongoing maintenance. A focus on skills and the outcomes those skills generate, rather than rigid role definitions, let the business cut costs, access specialized talent and avoid the turnover pitfalls of their previous model.
Skills-based hiring is far from the norm – most companies default to role-based hiring practices. It also comes with its share of controversy. Critics of the “gigification” of work justifiably worry about its impact on job security, employee benefits and the erosion of traditional workplace culture. They argue that an overreliance on temporary or contract workers can leave employees feeling disconnected from a company’s mission.
But proponents of skills-based hiring, including Agilus, stress that this approach doesn’t mean replacing full-time roles with contractors. When done thoughtfully, it’s about creating balance – clearly defining project outcomes, choosing the right mix of full-time and contract talent and maintaining transparency to ensure everyone is aligned.
And for workers, skills-based hiring can create opportunities to negotiate higher pay rates for in-demand skills or build a portfolio of experience across industries. Those seeking long-term stability can find roles that are more thoughtfully aligned with their skills. By focusing on what candidates can do rather than where they’ve worked or what credentials they hold, the approach opens doors for individuals who might otherwise be overlooked in traditional hiring processes.
But it does take careful strategizing. A key part of Agilus’s approach is helping businesses think through work force design before diving into recruitment. For instance, long-term needs that require highly skilled workers are often best addressed through full-time hires, while short-term, specialized needs might call for consultants or independent contractors. By separating work force design from hiring practices, Agilus enables businesses its clients to recruit with intention.
Plus, the company applies the same skills-based strategies it recommends to clients, using contractors for short-term needs while keeping its core team focused on long-term goals. CEO Craig Brown acknowledges the approach is not without its challenges. “How do companies maintain great corporate culture with different sorts of employees, train people effectively and establish a leadership cadence that works for both independent contractors and full-time internal hires? You need clarity with respect to outcomes, transparent communication, and a flexible mindset,” he says. “Skills-based hiring is picking up steam, but to execute it well, companies need to think a little differently.”
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