In today’s rapidly evolving workforce landscape, companies face a complex array of challenges. From finding and attracting the right talent to fostering a robust company culture and creating flexible career paths, business leaders are navigating a labyrinth of priorities. A significant hurdle is the widening skills gap; McKinsey estimates that 87% of companies are either experiencing skills shortages or expect to within the next few years. Moreover, HR professionals grapple with a competitive talent market and a lack of diverse talent pools.
One solution gaining momentum across industries is the adoption of a skills-based hiring practices. This approach emphasizes hiring and advancing employees based on their competencies, skills, and potential rather than traditional educational credentials. With 65% of Americans lacking a four-year degree, this strategy opens doors to a vast pool of untapped talent. Since its launch in late 2020, the OneTen coalition has grown to include over 60 leading employers committed to hiring, promoting, and retaining skilled talent without four-year degrees.
Cisco’s Journey to Skills-First Hiring
Before joining OneTen as a founding member in 2021, Cisco predominantly hired candidates with four-year college degrees. The decision to join the coalition marked a significant shift toward skills-first hiring, aligning with OneTen’s mission to build more inclusive and agile organizations. This move was not just a strategic pivot but also a reinforcement of Cisco’s existing values and commitment to social justice.
Cisco’s leadership had already been exploring ways to enhance racial equity within the company. In 2019, CEO Chuck Robbins initiated efforts to address the unique challenges faced by Black and other underrepresented employees. By 2020, Cisco launched “12 Actions for Social Justice,” a blueprint designed to guide the company in creating positive, generational social change. These actions included increasing representation at all levels, investing in inclusive culture training, and expanding fair pay.
Understanding and Communicating the “Why”
A critical factor in Cisco’s successful transition was its clear understanding and communication of the “why” behind the shift. By anchoring the skills-first initiative to its core values and existing social justice actions, Cisco ensured that employees at all levels understood the purpose and importance of the change. This alignment made the adoption of competency-based hiring practices a natural progression rather than a disruptive overhaul.
Empowering Leaders with Relevant Experience
Cisco recognized that the success of its OneTen commitment hinged on appointing leaders who not only had professional expertise but also personal experiences relevant to the initiative. Aleta Howell, who leads Cisco’s inclusive hiring and recruitment initiatives, and Keyana Tyson, who has progressive experience in recruiting and human resources and who herself did not pursue a four-year degree , were entrusted with leading the program. Both brought invaluable insights and a deep commitment to diversity, equity, and inclusion.
Their vision centered on creating a Cisco where formal education did not dictate success, and where skills and potential were valued regardless of how they were acquired. Empowered with decision-making authority, they were able to craft a skills-centric workforce development program that was both strategic and empathetic.
Securing Budget and Engaging Stakeholders Early
Cisco made a pivotal decision to centralize funding for the first 100 OneTen hires. This move demonstrated leadership’s commitment and reduced the perceived risk for hiring managers. By removing budgetary constraints from individual business units, managers could focus on the benefits of bringing in new talent based on skills.
To build support across the organization, the OneTen team conducted a comprehensive internal roadshow. They engaged senior leaders, provided overviews of the initiative, and presented recommended target roles. By securing buy-in from the top down, they ensured that the program had the necessary support to succeed.
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Partnering with Hiring Managers
Understanding that hiring managers were crucial to the program’s success, Cisco invested in educating and supporting them throughout the process. The OneTen team provided resources on creating skills-based job descriptions, building diverse interview panels, evaluating skills for hiring and adopting a skills-first mindset.
By prioritizing hiring managers who were eager to embrace the new approach, Cisco maximized its chances of success. Ongoing communication and practical resources made the transition smoother and more effective.
Prioritizing the Needs of New Talent
Cisco was intentional about supporting OneTen hires to ensure they felt valued and included. By hiring in cohorts, the company fostered a sense of community among new hires. Additional onboarding programs, immediate upskilling opportunities, and connections to employee resource groups helped these employees acclimate quickly.
The company also leveraged external partners to provide career coaching, skills training, and mentorship opportunities. This holistic support system was crucial in helping OneTen talent succeed and thrive within Cisco.
Measuring Results and Looking Ahead
Cisco’s skills-first initiative has yielded impressive results. With a 96% retention rate among OneTen hires and 26 promotions, the program has demonstrated tangible success. By hiring candidates with a 60-70% skills match, Cisco allowed room for growth, which contributed to higher retention and job satisfaction.
Continuous measurement and willingness to make real-time adjustments have been key to the program’s sustainability and scalability. Cisco’s experience underscores the importance of treating skills-based hiring strategies like any new business strategy—requiring clear KPIs, data-driven adjustments, and ongoing commitment.
Conclusion
Cisco’s skills-first hiring playbook serves as a powerful blueprint for other companies aiming to build more inclusive and agile workforces. By understanding and communicating the “why,” empowering leaders with relevant experiences, securing buy-in from stakeholders, partnering with hiring managers, and prioritizing the needs of new talent, organizations can replicate Cisco’s success.
The journey toward a skills-first paradigm is ongoing, but Cisco’s experience demonstrates that with commitment, passion, and strategic collaboration, it’s possible to convert ambitious public commitments into tangible, impactful change. As companies continue to navigate the complexities of today’s workforce landscape, embracing a skills-first approach could be the key to unlocking untapped potential and driving meaningful progress in diversity, equity, and inclusion.