A new report from the Institute of Student Employers (ISE) highlights the need for businesses to shift towards a skills-based approach in early career recruitment.
With demographic changes and technological advancements increasing the demand for highly skilled workers, organisations must adapt their hiring strategies to remain competitive.
The report, From Early Career to Emerging Talent, notes that lower birth rates and longer lifespans are contributing to a shrinking talent pool. To address this, companies should place less emphasis on age, education, and technical experience, instead focusing on skills, capabilities, and potential.
An ISE survey found that 68% of employers have either fully or partially adopted a skills-based recruitment strategy, with another 29% considering it. The report calls for early career teams to integrate more closely with HR and wider business functions to ensure that traditional programmes, such as apprenticeships and graduate schemes, also cater to career changers and individuals seeking to re-skill or up-skill.
Evolving Talent Strategies for a Changing Workforce
The report outlines key recommendations for businesses to transition from an early career focus to a broader emerging talent strategy. This includes maintaining a commitment to hiring young people through vocational and academic pathways, while also ensuring that existing employees have opportunities for career development through reskilling and upskilling.
A hiring strategy based on skills and long-term development, rather than previous experience, is seen as essential for attracting external candidates – although it might face resistance at first. Businesses are also encouraged to ensure that their talent strategies support diversity and inclusion, creating opportunities for individuals at different stages of their careers.
Stephen Isherwood, joint CEO of ISE, emphasises the importance of adapting to these changes. “While there are many reasons a skills-based organisation is desirable, there are many barriers to implementation. But avoiding change is not an option – shifting demographics and tech progress are here to stay. Ignoring them will lead to insufficient talent to meet business needs.”
Technology and Workforce Planning in Skills-Based Hiring
The report stresses that businesses adopting a skills-first approach must invest in strategic workforce planning, learning cultures, and technology to effectively implement these changes. Digital tools and data will play a central role in refining hiring processes and improving workforce retention.
Isherwood highlights the role of existing apprenticeship and graduate recruitment teams in driving this transformation. “Employers who can hire, train, re-train, and retain a skilled workforce are those that will succeed in the long term. Evolving early careers into a broader emerging talent strategy that places skills at its core is key.”
The ISE report sets out a framework for businesses looking to build a skills-based organisation, offering recommendations on implementation and exploring the role of technology in reshaping recruitment and workforce development.
