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From the CEO: Broadening the Talent Pool

September 6, 2024 | Johnny C. Taylor, Jr., SHRM-SCP

Picture of SHRM President and CEO Johnny C. Taylor, Jr., SHRM-SCP

In 2023, the U.S. fertility rate dropped to 1.62 births per woman, the lowest rate ever recorded. But we’ve been steadily heading in that direction, with the fertility rate consistently below the replacement level—the level at which a population precisely replaces itself from one generation to the next—for more than a decade now. Meanwhile, the U.S. consistently has more than 8 million open jobs at any given time, and a 25% average annual turnover rate is the norm. We’re staring at a talent crisis—one that will require a fresh approach to navigate.

Beyond this looming talent shortage, the onset of increasingly advanced technology, including generative artificial intelligence, is making honed skill sets an increasing necessity. As AI continues to change the way we work—and even take over many low-level tasks—we must upskill, reskill, and cross-skill our employees to handle this new technology and still contribute meaningful, productive work. I often say that it’s not AI that will take your job, but a fellow worker who learns how to best use it. It’s our responsibility as employers and company leaders to prepare our employees to thrive amid this revolutionary wave of new technology.

Despite the number of unique credentials in the U.S. increasing by 300% since 2018, there are still many barriers to hiring nondegreed individuals. While 87% of executives say they value skilled credentials, they’re not putting their money where their mouths are. To truly place value on skills, we must start challenging lazy recruiting tactics that synonymize degrees with “smart.” We need to embrace other ways of measuring competency.

To get there, hiring managers must know how to evaluate alternative credentials. 

This starts by having clear hiring needs—knowing the ins and outs of what a job will entail and what kind of skills should be required for someone to succeed in that role. For some jobs, this means requiring a degree. I, for one, would certainly like to know if my doctor completed medical school or my attorney has a law degree. In instances such as these, academic credentials speak volumes. But in many cases, lived experience can furnish an individual with the skill set necessary to be successful in a role.

Once we determine what kind of candidate we need for a role, we must de-risk the recruiting process for hiring managers. They need support from the top down to hire nondegreed individuals, knowing that if for some reason the hire doesn’t work out, their jobs won’t be on the line. Both degreed and nondegreed professionals have the potential to be bad hires; the only difference is hiring nondegreed professionals has the stigma of anticipated failure surrounding it.

Shifting the talent acquisition process toward a skills-first approach won’t happen by itself. It will require reassessing how hiring is done, making strategic decisions about how to evaluate alternative credentials and existing hiring needs, and committing to upskilling and reskilling employees once they’re in the door. But with a talent shortage upon us, this is no longer just the right thing to do—it’s a business imperative.

Talent Acquisition

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