Competency Weaver

Is Competency-Based Education Outshining Traditional Learning for Employers?

Introduction

      As technology rapidly reshapes the economy, the workforce is evolving at an unprecedented pace. These changes bring new skill demands, and organizations need talented workers to drive growth. Unfortunately, outdated hiring practices often make it difficult to find the right candidates, leading to unnecessary labour shortages.¹ To combat this, more and more companies, like Google, Walmart and Apple are shifting their focus—prioritizing proof of skills over traditional credentials. This aligns perfectly with competency-based education (CBE), which designs learning around measurable and relevant job-ready skills. CBE ensures learners graduate with tangible evidence of their abilities, making it a powerful tool to bridge the gap between education and the changing workforce needs. 

In contrast to traditional learning, which often focuses on theoretical knowledge, CBE only allows students to progress after they have mastered each skill forming a competency, which involves not only elements of knowledge, but also abilities and soft skills. This means CBE graduates are equipped with the authentic, practical expertise and confidence necessary to succeed from day one. Employers today want clear proof that candidates can meet their expectations, as mis-hires can be costly. They seek employees with practical, workplace-ready skills who can immediately contribute value. 

In this context, competency-based candidates stand out as a more effective solution for employers, often outshining candidates with prestigious degrees who may require a longer learning curve when entering the workforce. As companies increasingly shift their job ads to focus on skills-based qualifications rather than degree-based requirements, CBE candidates have a distinct edge, positioning them well to meet the evolving demands of an ever-changing workplace. 

Shifting from Degree to Skills and Why That is Beneficial in the Competency-Based Sense 

      Similar to the CBE mindset, skills-based hiring focuses on identifying the essential skills and competencies required for job success. It then assesses candidates based on their ability to demonstrate these skills through practical activities assessed through professional criteria. In this approach, candidates are evaluated primarily on their demonstrated abilities, making the most competent individual the ideal candidate. This mirrors the CBE framework that only allows progression after proof of competency.

A 2017 study by Accenture and Harvard Business School revealed that recruiters often mistakenly equate a college degree with a broad range of skills, from technical expertise to emotional skills. This pretense is extremely limiting for employers, as degrees and past job titles don’t necessarily testify to ability and often reflect privilege and opportunity rather than true skill. Instead, the focus should shift to identifying the specific skills required for a role and assessing candidates based on their ability to demonstrate those skills through practical exercises. 

From a CBE perspective, the bottom line of skills-based hiring is that if a candidate possesses the necessary skills to successfully perform a job, they should be considered for the role. This aligns with the incorporation of Prior Learning Assessments (PLA) (read more about this in our latest article)  in CBE which recognize and validate prior learning acquired through various pathways, including self-study and unconventional learning experiences. The Council for Adult and Experiential Learning (CAEL) has been instrumental in promoting the value of prior learning assessment and recognition in the modern workplace. By focusing on skills rather than degrees, skills-based hiring enables organizations to expand their talent pool in a competitive job market, leading to increased diversity and fresh perspectives within their teams.

With rapid shifts in the workforce and the growing demand for new skills, the shortage of candidates with direct experience in emerging fields has become a persistent challenge. This was particularly evident for global pharmaceutical company Bristol Myers Squibb (BMS) when hiring for their cell therapy initiatives aimed at developing innovative treatments for diseases like cancer. Because cell therapy is a nascent field with few experienced professionals, BMS turned to skills-based hiring, prioritizing competencies over traditional education and work experience.² This approach allowed them to tap into a wider talent pool and hire candidates who were well-suited for the role, even if they came from nontraditional backgrounds. 

The tight labour market has made skills-based hiring an increasingly practical solution. According to TestGorilla’s State of Skills-Based Hiring 2024 report, 81% of companies adopted this approach last year (up from 73% in 2023). Furthermore, 94% of employers agreed that skills-based hiring is a more reliable predictor of on-the-job success than resumes. The Chief Talent Officer at IBM, Chris Foltz concurs, “the half-life of skills is expiring faster and faster,” saying when finding talent, “you have to have a broader aperture because these skills are fresh, new, evolving, growing every day. You want to be competitive in this talent market.”

It is interesting to contextualize CBE within the growing trend of skills-based hiring. As the focus shifts from relying solely on academic degrees to prioritizing demonstrable skills and competencies, CBE proves to be a valuable asset. By equipping learners with practical skills (both hard and soft) and the ability to demonstrate mastery through real-world projects and performance-based assessments (PBA), CBE graduates are ideally positioned to thrive in a job market that increasingly values what individuals can do rather than simply what degrees they hold.

Traditionally, experience and education were paramount in job applications but we know now that this emphasis can overlook a candidate’s true suitability for a role. Competencies provide more reliable indicators of success. By screening potential hires through skills assessments, employers can make more accurate and unbiased hiring decisions, leading to a more diverse workforce and higher retention rates. As Executive Search Expert Achyut Menon points out, the crucial decision for employers is whether to find ‘a person’ or ‘the person’.

Advantages of CBE for Employers Including Upskilling with CBE

The advantages of skills-based practices benefit both employers and candidates, and this approach shouldn’t stop once the hiring process is complete. Workforce development, upskilling and reskilling initiatives offer workers valuable learning opportunities, enabling them to qualify for more positions by building the skills required for various roles within the organization. This approach boosts employee retention, enhances efficiency, and allows employees to pursue career opportunities without leaving the company. 

By implementing CBE practices and partnering with educational networks, employers can create tailored onboarding programs—or adapt existing ones—to meet new hires at their skill level, equipping them with the tools needed for long-term success. These practices also support on-the-job training, lifelong learning, and clear internal promotion pathways, enabling employees to advance from entry-level roles without requiring a degree —which is a big step towards equity in the workforce. Offering this sort of training helps bridge learning gaps and emphasizes the importance of lifelong learning in everchanging industries. 

“Society, technology and industries are changing so quickly that it’s harder to imagine what you’ll need from a person in two years,” says founder of Fortify, Paul Musters, “this is also about people’s mindset in regard to developing their skills.”³ Candidates with experience in competency-based systems are particularly well-suited for these environments, as they are adept at acquiring and applying new skills. Their ability to grow within an organization will foster higher morale among teams, reduce the need for constant retraining and rehiring, and drive productivity gains across the board.

Conclusion

    Skills-based hiring is the key to unlocking a more diverse, capable, equitable and adaptable workforce. It enables employers to retain top talent, even during periods of economic uncertainty. Among the most promising candidates are those who have completed CBE programs, as they are uniquely positioned to demonstrate mastery in their chosen fields more quickly and effectively than those from traditional educational backgrounds. 

For candidates, this “will and skill” approach opens doors to career growth, allowing them to excel in dynamic industries where continuous learning and upskilling are vital. CBE equips learners with job-ready skills, preparing them to meet the demands of the workforce from day one. This is particularly beneficial for adult learners who may have significant prior learning experiences from military training, professional training, or other non-traditional educational pathways. 

At the same time, CBE empowers employers to implement more inclusive and effective hiring practices, addressing talent shortages and fostering greater retention. By embracing a competency-driven mindset, organizations can forecast skill needs dynamically and understand the evolving skill profiles required to stay competitive. In this shifting landscape, CBE and skills-based hiring are far more than passing trends—they are indispensable strategies for shaping a resilient and future-ready workforce.

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