A survey by Arctic Shores finds that 88 percent screen out candidates because of a lack of experience, yet 67 percent say screening for experience reduces size and diversity of their talent pool, further exacerbating the skills crisis.

Outdated hiring methods are shrinking talent pools and hampering diversity.

It also costs organisations money, with 72 percent currently paying higher salaries in order to find candidates with the right experience.

“What we’re seeing isn’t a skills shortage, it’s a skills blindness. We live in a world with millions of capable workers yet companies are stressing about escalating salaries and an inability to fill roles. The issue is that everyone is playing musical chairs, poaching those with experience from other companies, who in turn poach from someone else. The only way organisations will get out of this costly spiral is to start hiring for transferable skills and potential,” says CEO of Arctic Shores, Robert Newry

 

Potential over experience

Experience is undoubtedly a key factor in whether a candidate is hired, with 91 percent of respondents identifying experience as a useful way to establish whether a candidate will suit their roles.

Currently, 68 percent use CVs as their first method of screening for experienced hires.

However, the majority (78%) believe a lack of relevant skills and candidate experience will inhibit their ability to achieve strategic objectives and/or financial goals in the next 24 months.

By relying on past experience rather than the potential that a candidate shows, organisations are taking a financial and strategic hit.

The World Economic Forum had also warned that 85 million jobs will disappear and 97 million new digital-first jobs will arise by 2025.

 

How valuable are CVs in the screening process?

More than half (59%) have considered removing CVs from their hiring process altogether.

However, the majority of hiring managers use CVs as their chosen method to screen out candidates.

When it came to reasons why CVs hadn’t been removed from the process, 65 percent of respondents were blocked by the belief of a lack of viable replacements, hiring manager objections, and a lack of time and resources.

Removing the CV feels like ‘hard work’ for many, with the perception that there are no viable alternatives.

Only 27 percent use psychometric assessments in their hiring processes.

“Scrapping the CV might sound radical, but you cannot solve tomorrow’s challenges with yesterday’s solutions,” added Newry. “What we’re calling for is an awareness of the challenge we face and for the start of a transition to futureproof the UK’s workforce,” says Managing Director of Xerox UK and Ireland, Darren Cassidy.