Skills-Based Hiring: A Strategic Approach to Combat Talent Churn in Small Businesses
By Robyn Grable, founder of Talents ASCEND
In today’s competitive business landscape, talent churn—the rate at which employees leave a
company—is a significant concern for small businesses. McKinsey’s research highlights the
staggering costs associated with churn, emphasizing the financial burden of talent acquisition
and training, which amounts to billions annually. For small businesses, these costs can be
particularly daunting, impacting not only financial stability but also operational efficiency and
team morale.
To mitigate the challenges posed by talent churn, small businesses are increasingly turning to
skills-based hiring as a strategic solution. Unlike traditional hiring methods that prioritize
credentials or experience alone, skills-based hiring focuses on valuing candidates based on their
actual abilities and potential to contribute meaningfully to the organization. Here’s how skills-
based hiring can effectively combat talent churn for small businesses:
1. Accurate Fit for Roles
One of the primary advantages of skills-based hiring is its ability to match candidates with roles
based on their specific skills and competencies. By identifying candidates who possess the
necessary skills to excel in a particular role, small businesses can reduce the likelihood of
mismatches and subsequent turnover. This approach ensures that new hires are not only capable
of performing their duties but also have the potential for long-term growth within the
organization.
2. Focus on Potential and Growth
Skills-based hiring allows small businesses to prioritize potential and growth over superficial
criteria such as years of experience or educational background. By assessing candidates based on
their ability to learn, adapt, and innovate, businesses can identify individuals who are not only
qualified for current roles but also have the potential to take on additional responsibilities as the
company grows. This focus on potential fosters a culture of development and engagement,
reducing turnover by providing employees with opportunities to advance within the organization.
3. Enhanced Employee Engagement
Engagement is a critical factor in reducing talent churn. When employees feel valued for their
skills and contributions, they are more likely to remain loyal to the organization. Skills-based
hiring promotes engagement by placing employees in roles that align with their strengths and
interests, allowing them to thrive professionally. Moreover, employees who are given
opportunities to further develop their skills are less likely to seek opportunities elsewhere,
thereby reducing turnover and its associated costs.
4. Cost Effective Talent Management
For small businesses, managing talent effectively is essential to maintaining financial stability.
Skills-based hiring minimizes the costs associated with turnover by reducing the need for
frequent recruitment and training. By investing in employees who possess the right skills and
potential for growth, businesses can achieve greater ROI on their human capital investments over
time. This approach not only saves costs but also enhances overall organizational efficiency and
effectiveness.
5. Building a Sustainable Workforce
In today’s dynamic business environment, adaptability and resilience are key to sustainability.
Skills-based hiring enables small businesses to build a diverse and adaptable workforce capable
of navigating industry changes and challenges. By focusing on skills rather than static
qualifications, businesses can future-proof their teams and position themselves for long-term
success.
Conclusion
In conclusion, skills-based hiring offers small businesses a strategic advantage in combating
talent churn. By prioritizing skills, potential, and cultural fit, businesses can build a cohesive and
engaged workforce that drives organizational growth and stability. This approach not only
reduces turnover and its associated costs but also fosters a culture of continuous learning and
development. As small businesses continue to navigate the complexities of talent management,
skills-based hiring stands out as a reliable strategy for building resilient and high-performing
teams in the face of evolving market demands.
About The Author
Robyn Grable | Talents ASCEND
Robyn Grable is the Founder and CEO of Talents ASCEND, an organization dedicated to transforming how small businesses approach hiring decisions. As a champion of skills-based hiring, Talents ASCEND connects underserved and untapped talent pools with meaningful employment opportunities through a proven, skills-focused talent sourcing method.
An award-winning advocate, speaker, author, entrepreneur, and proud Navy veteran, Robyn excels in multiple roles. Central to her varied endeavors is a commitment to service and a fervent passion to advocate for inclusivity in the workforce. Her commitment is supported by an extensive background that combines over 30 years in private sector human resources with nine years of service in the U.S. Navy.
Robyn is a recognized authority on workforce development, dedicated to removing employment barriers and creating opportunities for successful employment among America’s underserved talent pools. Her current focus is on ensuring the skills of veterans, military spouses, individuals with disabilities, and second-chance candidates are acknowledged and valued. By advocating for intentional changes in hiring practices, she aims to help employers appreciate the full benefits of diverse skills, enabling all individuals to truly ascend.
