Big Insights from Small and Mid-Sized Businesses

Leaders across the United States share a common concern: how to ensure that workers have the skills they need to find quality jobs and that businesses have the talented workforce they need to thrive. In response, policymakers and education and workforce leaders have been exploring new ways for workers to demonstrate their competencies. One example is the growing adoption of “skills-based hiring”—an approach that prioritizes applicants’ skills, competencies, and experience over bachelor’s degree requirements. This approach has the potential to remove barriers for people without traditional degrees and widen talent pools for employers. Policymakers are also focusing on short-term, quality non-degree credentials as a way for people to certify that they have industry-validated skills. States have made significant investments in these credentials, and the federal government recently expanded its own investments via Workforce Pell. As public investment grows, policymakers and skills advocates are working to ensure that these efforts lead to strong outcomes—but business perspectives are rarely researched. To fill that gap, Business Leaders United for Workforce Partnerships interviewed 75 small and mid-sized businesses—primarily in manufacturing and construction—about their hiring and skills assessment processes.