A comprehensive overview of Indeed's breakfast briefing on skills-based strategies for modernising public sector recruitment
In a rapidly evolving digital landscape where artificial intelligence is transforming every aspect of work, the public sector faces a critical challenge: how to modernise recruitment practices to attract and retain the talent needed for tomorrow's challenges. At a recent breakfast briefing hosted by GovNet in partnership with Indeed, Matt Burney, Senior Strategic Advisor at Indeed, presented compelling insights on skills-first hiring as a transformative approach for government organisations.
The urgency of addressing recruitment challenges has never been more apparent. Burney highlighted alarming statistics that underscore the magnitude of the problem facing the UK workforce: 8.4 million people in the UK workforce are digitally illiterate, representing the highest rate of digital illiteracy per capita in Europe. A staggering 12.5% of the workforce requires significant support to use basic technology, whilst 45% of job seekers report that getting hired has become more difficult in the past three years. Perhaps most concerning of all, the UK has the lowest level of adult learning across all of Europe.
These statistics paint a stark picture of a workforce unprepared for the demands of modern employment, particularly in the public sector where digital transformation is essential for service delivery. The fundamental change occurring across industries cannot be ignored – everyone now uses AI in their work, creating both opportunities and unprecedented challenges for recruitment.
The AI Revolution's Impact on Hiring
The integration of AI into recruitment processes has created a complex landscape that organisations must navigate carefully. Burney noted that whilst AI adoption has become omnipresent, it has also introduced new complications that require sophisticated responses.
The rise of AI tools like ChatGPT has made it easier than ever for candidates to apply for roles, contributing to a surge in application volumes. While this accessibility has clear benefits, it has created challenges for employers trying to identify genuinely engaged applicants. Some submissions can feel generic or overly templated, lacking the customisation that reflects a clear understanding of the role or company. This "volume vs. quality" tension is not necessarily about laziness, often it reflects the pressure candidates feel to compete in a fast-moving, tech-driven hiring landscape. This homogenisation creates a screening challenge for employers who struggle to differentiate between candidates. The traditional recruitment process is no longer sustainable when faced with these AI-generated applications that follow similar patterns and lack authentic insight.
Understanding Skills-First Hiring
Skills-first hiring represents a fundamental shift from traditional recruitment methods that prioritise qualifications and experience to those that focus on demonstrable capabilities and potential. This approach recognises that there are essentially two types of skills that matter: hard skills (technical, measurable abilities) and soft skills (communication, critical thinking, adaptability).
The beauty of this approach lies in its ability to expand talent pools significantly by removing unnecessary barriers to entry. Rather than focusing on traditional career paths, organisations can consider candidates from diverse backgrounds – ex-military personnel, career changers, and those who have taken non-traditional routes into their chosen fields. This shift allows employers to prioritise skills first and consider background later, opening up opportunities for talented individuals who might otherwise be overlooked.
Remarkably, 87% of sectors have now lowered their degree requirements compared to five years ago, demonstrating a widespread recognition that degree qualifications don't necessarily predict job performance. This trend reflects a growing understanding that capable individuals can be found across all educational backgrounds and that potential often matters more than past credentials.
Breaking Down Barriers and Building Bridges
The skills-first approach involves leveraging technology to enhance rather than replace human judgement in recruitment. AI and automation can process applications more effectively, identify skills rather than just credentials, and implement bias-detection tools to ensure fair recruitment practices. However, the human element remains crucial in assessing the more nuanced aspects of candidate suitability.
One particularly interesting development is the need for employers to adapt their interviewing techniques to account for AI-assisted preparation. Burney suggested that asking candidates about their AI prompting strategies can reveal critical thinking and tool utilisation skills – capabilities that are increasingly valuable in the modern workplace.
The focus on skills rather than credentials also addresses the problem of misplaced talent and underemployment, where skilled individuals are underutilised in roles that don't fully leverage their capabilities. By conducting comprehensive skills audits of existing workforces, organisations can identify gaps and opportunities for internal mobility, ensuring that talent is deployed most effectively.
The Retention Revolution
Skills-first hiring extends far beyond recruitment to encompass the entire employee lifecycle. The old model of simply filling vacancies is no longer sufficient; organisations must think more strategically about building and retaining talent. This involves creating clear career progression pathways that don't rely solely on traditional management hierarchies and recognising that not everyone wants to become a manager.
The concept of great individual contributors versus the traditional manager path opens up new possibilities for career development. Celebrating growth and career transitions, providing proper compensation that reflects skill development, and implementing alumni and returnship programmes all contribute to a more dynamic and engaging employment proposition.
Continuous learning becomes central to this approach, moving beyond tokenistic training to meaningful skill development. This is particularly crucial given that whilst 70% of workers believe the skills needed in their roles will change over the next five years, and 92% are confident they can adapt to that change, this confidence isn't translating into proactive skill development.
The Economic Imperative
The economic case for skills-first hiring is both compelling and urgent. According to a 2024 industry report, UK businesses are losing over £275 million annually in productivity due to employees spending time on manual, low-value tasks, often the result of poor digital skills and inadequate preparation for modern roles. Factoring in wider impacts like poor onboarding, tech gaps, and wasted talent, the true cost could be far higher. With UK productivity already trailing international benchmarks, addressing the skills gap isn’t just a workforce issue, it’s an economic imperative. This represents the cost of having to train employees in basic skills that should have been acquired before entering the workforce.
For government organisations, this economic impact is particularly significant given the pressure on public finances and the need to demonstrate value for money. Skills-first hiring offers a pathway to reduce time-to-productivity for new hires, improve retention rates, access wider talent pools, and enhance organisational agility – all of which contribute to better outcomes for citizens and more efficient use of public resources.
Future-Proofing the Workforce
The most in-demand skills for the future workforce reveal an interesting hierarchy that challenges some common assumptions. Critical thinking and reasoning top the list, followed by clear communication and continuous learning capability. Digital literacy and adaptability round out the top five, whilst technical skills like software development rank only sixth in importance. This emphasises the continued value of uniquely human capabilities even in an increasingly automated world.
People need to become more adaptable and clearer communicators, skills that cannot be easily replicated by AI. The focus on these human-centric capabilities suggests that the future workplace will be characterised by collaboration between humans and AI, rather than replacement of humans by AI.
The Public Sector Challenge
The public sector faces unique challenges in implementing skills-first hiring, including rigid frameworks, compliance requirements, and cultural resistance to change. Existing civil service frameworks and success profiles can limit flexibility in recruitment approaches, whilst the need to meet regulatory and equality standards adds complexity to any transformation effort.
However, the sector also faces an existential risk if it fails to modernise. Burney warned that the public sector risks becoming the employer of choice only for those willing to tolerate cumbersome processes rather than those driven by purpose and capability. This would represent a fundamental shift away from the sector's traditional ability to attract purpose-driven individuals who want to make a difference.
The solution lies in running parallel processes – implementing skills-based recruitment alongside traditional methods to demonstrate effectiveness and build confidence in new approaches. Starting with pilot programmes in specific areas allows organisations to test and refine their approach before rolling out changes organisation-wide.
A Practical Path Forward
The transformation to skills-first hiring isn't optional – it's essential for building resilient, capable organisations ready for future challenges. The approach requires investment in training hiring managers to assess skills effectively, embracing technology to enhance human judgement, and thinking holistically about skills-first hiring as part of broader organisational transformation.
Success in this transformation requires measuring outcomes carefully to build evidence for wider adoption. The NHS has already demonstrated the practical benefits of this approach, with successful implementations showing significant improvements in recruitment outcomes, particularly in bringing people new to patient care into the organisation.
The choice facing public sector leaders is clear: embrace skills-first hiring now to build competitive advantage, or risk falling behind in the competition for talent. As organisations grapple with the challenges of an AI-driven economy, those that successfully implement skills-first hiring will be better positioned to attract diverse talent, build capability, and deliver excellent public services.
The future of public sector capability depends on making this transition successfully. We're not just filling roles but building resilient institutions ready to meet the complex challenges of tomorrow. The time for action is now.
Are you keen to find out more about Indeed’s Public Sector Talent Hub? Get in touch with Caroline via cbarbour@indeed.com
Ola Jader
