The Impact of Skill-Based Hiring on Talent Retention

Cisco is proving that skill-based hiring is not just a trend but a highly effective strategy. In 2023, 30% of the company’s entry-level roles were filled by individuals without degrees, while 42% of its business units hired non-degree professionals. These hires demonstrated a retention rate of 96% in their first year, outperforming company-wide averages.

How Cisco Removed Risks for Managers

One major barrier to adopting skill-based hiring is managers’ concerns about the performance of candidates without degrees. To address this, Cisco centralized its hiring budget, enabling business units to recruit without risking their own resources. This “risk-free” approach encouraged managers to embrace the strategy, resulting in demonstrable success.

The Importance of Extended Onboarding for New Hires

Recognizing that some new hires may need additional skill development, Cisco extended its onboarding period to nearly three weeks. This tailored integration strategy, coupled with customized training programs, ensured a smooth transition into the corporate environment. Cisco also partnered with OneTen, an organization dedicated to supporting non-degree hiring, to provide comprehensive skill-building resources.

Skill-Based Hiring and Diversity Promotion

Beyond inclusion, skill-based hiring has bolstered Cisco’s diversity efforts. According to Kelly Jones, Cisco’s Chief People Officer, the program improved diversity metrics while yielding business benefits, including higher retention and engagement rates among hires. This approach demonstrates how inclusive hiring practices can enhance both company culture and performance.

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