Proficiency over pedigree: Building a skills-first culture in the workplace
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Employers are “reclaiming some bargaining power” as hiring rates drop globally. LinkedIn reveals the latest insights in its 2023 Global Talent Trends report
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LINKEDIN HAS published its May 2023 Global Talent Trends report and the latest figures reveal that hiring rates are continuing to slow globally, including in Singapore. In Singapore, the hiring rate saw a 29% decline year-on-year compared to May 2022. This shows it may be time for companies to start focusing more on building a culture of growth, development and learning, and encouraging internal mobility.
These thoughts are echoed by LinkedIn’s global chief economist, Karin Kimborough, who says businesses need to continue orienting their talent strategy around skills and career development, rather than more costly external hiring.
With more than 800 million members, LinkedIn is the largest professional network in the world and a popular choice among professionals looking to advance their careers. Use LinkedIn to find top talent and improve your employer branding. LinkedIn Talent Solutions are built to help companies of all sizes throughout the entire candidate journey. Our range of solutions will help you plan, hire and develop more effectively than ever, helping you to build winning teams.
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“As it stands, our labour market still values experience and pedigree over skills. As talent leaders, we have to evangelise the shift from valuing our people’s experience to taking a more holistic view of the skills that they can bring to the table”
Linda Jingfang Cai,
LinkedIn
As hiring slows, it’s never been more important for organisations to look within and focus on the growth and development of their existing employees.
While internal mobility rates in 16 of the 19 global industries studied have increased, an internal move is still not top of mind for most employees globally, with figures showing that most employees are still prioritising external job opportunities rather than looking for an internal move.
LinkedIn global VP of talent development Linda Jingfang Cai says there could be several reasons for this – from bigger pay increases when switching employers, to clunky and unclear internal hiring processes.
So, who is benefiting more from internal moves? LinkedIn’s data found that in Southeast Asia, “people leaders” are almost twice (1.8x) as likely to move internally as individual contributors. Gen X also experienced the highest internal mobility rate compared to other age demographics (69%), with baby boomers being the least likely to move internally.
“Even as some employees may prioritise internal roles, they can get discouraged by a lack of opportunities in internal hiring, such as demonstrating transferable skills,” Jingfang Cai says, commenting on the global trends.
“As it stands, our labour market still values experience and pedigree over skills. As talent leaders, we have to evangelise the shift from valuing our people’s experience to valuing their skills. We need to make it easier to assess and demonstrate skills, and adopt equitable compensation practices that are based on skills.”
To encourage a culture of internal mobility, Jingfang Cai says talent leaders across the world should start asking “tough questions” about their companies’ culture and processes. They should question whether internal moves are encouraged, and whether employees know how to access open internal roles. There should also be a “clear working model” between the teams most likely to handle internal mobility – for example, talent acquisition, HR and talent development.
On a global level, the report found that certain industries – particularly those that experienced significant upheaval throughout the pandemic – have seen “shifts in key values”. Hospital and healthcare employees placed work-life balance as their top priority, suggesting that burnout and talent shortages have had a significant impact on what they want most from their workplace. Meanwhile, retail, hospitality and food service employees are increasingly seeking a clear career path, and placed advancement opportunities as their top priority.
With the job market still in a state of constant change, people are reassessing how, why and where they work. However, LinkedIn VP of global talent acquisition Jennifer Shappley notes that the top three values have become “almost immovable”.
“When we cover the basics, we can start to look deeper within our employee populations and candidate pools to see what will make the difference between them joining our organisations (or staying) and looking for opportunities elsewhere.”
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Published 14 Aug 2023
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“Professionals are telling us they want to look for employers that align with their values and goals. It’s especially important for organisations and business leaders to note that employees are underscoring that, for them, flexibility is here to stay”
Jennifer Shappley,
LinkedIn
Despite the turbulence of the past two years, employees consistently place value on working for companies that are aligned with their personal and professional goals and values.
Besides compensation, top priorities for job candidates in Singapore are opportunities for advancement and career growth, as well as work-life balance.
Focus on developing careers and upskilling
Tip:
According to Kimbrough, labour markets are still relatively tight in many countries and industries, particularly when compared to their pre-pandemic baseline. So, what can organisations do?
Understand what employees value most
Tip:
Put skills at
the forefront of strategy
Tip:
LinkedIn’s global data found that companies have an almost 7% higher retention rate at the three-year mark for employees who have learned skills on the job. At a time when the job market is volatile and unpredictable, and many industries are facing a talent shortage, the power of putting skills first can’t be ignored.
According to the Global Talent Trends report, employees have “long been asking for work that complements the skills they have or want to build”. It notes that to set themselves up for long-term success, talent leaders need to move away from the standard ‘years of experience’ requirements and instead focus on upskilling and reskilling. While this can feel like a major and significant step, these new insights confirm that every step helps.
To read the full LinkedIn 2023 Global Talent Trends report for Singapore, click here.
People leaders are 1.8x more likely to move internally compared to individual contributors
Gen X has the highest internal mobility rate
Source: LinkedIn May 2023 Global Talent Trends report
Internal mobility trends in Southeast Asia
1
2
3
Source: LinkedIn May 2023 Global Talent Trends report
Compensation
Career
advancement
Work-life
balance
Top priorities for employees in Singapore
“People are telling us they have basic needs they want their employers to meet. I think it’s especially important for organisations and leaders to note that employees are underscoring that, for them, flexibility is here to stay,” Shappley says.
Taking a skills-first approach doesn’t just help you attract the right people; it also helps you keep the employees you have. Skills-first means hiring, promoting and training for practical skills rather than maintaining an overly heavy focus on years of experience, or specific university degrees.