All: The Power of Skills-Based Hiring in today’s talent shortage

Introduction: The Changing Talent Landscape of Customer Service & CX 

In today’s fast-paced world, customer expectations are higher than ever. To meet these demands, contact centres need a robust and agile workforce. However, talent pools are shrinking in Australia, and there is no longer an abundance of candidates available. So, how do companies attract new candidates? The answer lies in skills-based hiring.

Why Contact Centres Struggle with High Turnover

The contact centre industry is notorious for its high turnover rates. In Australia, customer service roles have a 30% higher turnover rate compared to other positions. High turnover disrupts operations, increases costs, and affects customer satisfaction.

 

The Cost of High Turnover

Replacing an employee is not just about filling a vacant seat. It involves costs related to recruitment, training, and lost productivity. Studies show that the cost of replacing an employee can be as high as 150% of their annual salary. For contact centres, this translates to significant financial strain.

 

The Power of Skills-Based Hiring

Skills-based hiring focuses on evaluating candidates based on their abilities rather than their educational background or previous job titles. This approach ensures that you are hiring individuals who can perform the tasks required for the job right from the start.

 

Benefits of Skills-Based Hiring

Reduced Time-to-Hire

Skills-based hiring can significantly reduce the time-to-hire. On average, companies that adopt this approach experience a 26-50% reduction in time. This translates to getting your new hires up and running faster, reducing downtime, and improving overall productivity.

Lower Attrition Rates

One of the most compelling benefits of skills-based hiring is its impact on employee retention. Our skills-based testing platform, has shown that people hired utilising this have an 80% lower turnover rate. This means fewer disruptions and a more stable workforce.

Improved Job Performance

Candidates selected through a skills-based approach are better suited for their roles. Employees hired through our platform perform 80% better and get promoted 44% faster. This not only boosts morale but also contributes to the overall success of the organisation.

 

Real-World Success Stories

Case Study: The Lotteries Corporation

The Lotteries Corporation chose flexhive by Hudson as it’s trusted partner for placing candidates. Since June 2022, flexhive has successfully placed an average of 16 candidates per month, resulting in over 5,500 permanent placements, thanks to a skills-based hiring strategy. Currently, they place an average of 16 candidates per month.

 

The Future of Skills-Based Hiring

AI and Machine Learning

The future of skills-based hiring lies in AI and machine learning. These technologies can analyse vast amounts of data to identify the best candidates, making the hiring process faster and more accurate.

Remote Work and Global Talent Pool

The rise of remote work has expanded the talent pool. Skills-based hiring allows you to tap into this global talent pool, ensuring that you hire the best, regardless of location.

Continuous Learning and Development

Skills-based hiring is not a one-time process. Continuous learning and development are crucial to keep your workforce updated with the latest skills and trends. Investing in employee development leads to higher job satisfaction and retention.

 

Conclusion

Skills-based hiring is not just a trend; it’s a necessity for building resilient contact centres. By focusing on skills rather than credentials, you can reduce turnover, improve performance, and enhance customer satisfaction.

For more information on how flexhive by Hudson can connect you with top pre-qualified talent visit flexhive by Hudson.