Study: Educational qualifications lose out to technical skills as firms relook hiring process

Companies in Singapore and Malaysia would prefer to hire candidates with skills, over qualifications such as education or experience, LinkedIn’s recent Future of Talent report has found. Malaysia prefers to hire candidates with technical skills (38%) and transferable skills (28%), and this is prioritised over traditional qualifiers like education (10%) and minimum years of experience (12%). In fact, two out of three (67%) companies are open to hiring employees from another industry if the skills they possess match the job requirements.

Similarly, companies in Singapore prefer to hire candidates with technical skills (39%) and transferable skills (31%). This is prioritised over traditional qualifiers like education (8%) and minimum years of experience (12%). In fact, three in five (60%) companies are open to hiring employees from another industry if the skills they possess match the job requirements.

Moreover, external hiring is not the only way to acquire skills in demand. The report found that companies are becoming more open to tapping on talent within the organisation to fill open roles. Around 85% of companies in Malaysia are willing to hire internally as they can leverage existing employees’ insider's perspective (72%), provide a sense of progress to employees (65%), and encourage loyalty (56%). In Singapore, 90% of companies, are willing to hire internally as they can leverage existing employees’ insider's perspective (65%), provide a sense of progress to employees (65%), and encourage loyalty (55%).

Companies in Malaysia look for three soft skills in particular when hiring internally, namely, problem solving skill, communication skills, and strategic thinking. Among these three, problem solving skills (46%) stood out as one of the in-demand skill sets as compared to other markets in APAC.

linkedin future talent sg

linkedin future talent sg

Using data for hiring
 

In order to implement a hiring process based on skills, companies are tapping on the power of data and insights. Almost nine in 10 companies in Malaysia understand the importance of using data-driven insights in their hiring decisions. In fact, Malaysian companies (55%) lead the region in using data very frequently for mapping skills with open position requirements.

The top areas of data usage are in identifying skills needed in the future (57%), top technical skills required for a particular role or profile (55%)and measuring employee performance (52%).

More than seven in 10 companies in Singapore understand the importance of using data-driven insights in their hiring decisions. The top areas of data usage are in identifying skills needed in the future (45%), getting information on what their competitors are offering for similar roles (42%), and measuring employee performance (39%).

Related Articles:
LinkedIn: Conversations around diversity see 144% more engagement
LinkedIn: Empathy and diversity to form the crux of employer branding when hiring in 2021
LinkedIn names new MD as Olivier Legrand steps down