Empowering Progress
Harnessing Skills-Based Strategies to Drive Public Sector Excellence
Skills-Based Hiring Policies on the Rise
"To harness the full potential of skills-based hiring and mitigate staffing shortfalls, state and territory governments can continue to lead by example. By expanding skills-based hiring, states and territories not only address critical workforce shortages but also cultivate a more dynamic, diverse, and adaptable public sector workforce.”
Skills-based hiring is transforming how the public sector acquires talent by prioritizing a candidate’s skills, competencies, and relevant work experience over traditional qualifications like degrees or job titles. This approach addresses limitations of traditional hiring methods, such as poor job fits and narrow candidate pools.
The National Governors Association (NGA), with data analysis provided by Lightcast, has partnered to examine this shift and its impact on state and territory governments. The Empowering Progress report details how states are enacting policies to prioritize skills, address workforce shortages, promote diversity, and improve hiring outcomes.
A New Approach to Talent Acquisition
The public sector is undergoing a transformation in how it views and assesses talent. Skills-based hiring offers significant benefits, including:
- Better job matches
- Reduced turnover
- Increased job satisfaction
- A more inclusive workforce
This change has the potential to positively impact the broader economy by expanding talent pools and creating career mobility.
Key Findings on Skills-Based Initiatives
- Over half of U.S. state governments have adopted policies encouraging skills-based hiring.
- States embracing skills-based hiring have seen faster growth in job postings that don’t require degrees.
- These policies are helping states tackle talent shortages and diversify their workforces.
- Challenges remain, including the need for robust data and new assessment tools.
Skills-Based Hiring in Action
Several states are leading the way in implementing skills-based hiring:
Maryland: Since Maryland dropped bachelor's degree requirements in 2022, no-degree job postings have increased from 32% to 47% (by 2024)
Colorado: Colorado is modernizing its labor exchange to focus on skills-based hiring, following a 2022 executive order to prioritize skills over degrees
Pennsylvania: Pennsycvania removed four-year degree requirements from 92% of positions in state government – opening up approximately 65,000 jobs to a wider pool of candidates
The Public Sector Leads the Way
These examples demonstrate how skills-based hiring can be operationalized and its positive impact on the public sector.
The Empowering Progress report offers a roadmap for states and territories to successfully transition to skills-based hiring.