Skills-Based Hiring
Skills-based hiring is a recruitment strategy that prioritizes a candidate’s demonstrable skills and competencies over traditional qualifications like degrees or years of experience. This approach benefits employers by expanding the talent pool, improving the accuracy of talent matching, and fostering a more diverse and inclusive workforce. By focusing on what a candidate can do, rather than just what they have done, organizations can identify individuals with the specific skills needed to succeed in a role, leading to increased productivity and innovation. Your organization can implement skills-based hiring with a simple five-step process:
- Identify & Define Required Skills: Begin by analyzing each job role to pinpoint the essential skills needed for success. This involves breaking down job descriptions into specific competencies, both technical and soft. For example, instead of requiring a “bachelor’s degree in marketing,” identify specific skills like “proficiency in SEO analysis,” “aptitude for content creation,” or “strong data interpretation abilities.” For a software developer, define skills like “expertise with Python programming,” “knowledge of cloud computing platforms,” or “ability to debug complex code.”
- Develop Skills-Based Assessments: Create or utilize assessment tools that accurately measure candidates’ proficiency in the identified skills. This can include practical tests, coding challenges, simulations, or behavioral interviews focused on past experiences that demonstrate the desired competencies. For a content marketing role, a practical test could involve writing a sample blog post or creating a social media campaign. For a data analyst position, a coding challenge or a data interpretation exercise would be appropriate.
- Refine Job Descriptions & Screening Processes: Revise job descriptions to emphasize required skills rather than educational prerequisites. Implement screening processes that prioritize skills-based assessments over resume keywords. This could involve using skills-based screening platforms that automatically evaluate candidates’ proficiency in specific areas. For example, instead of filtering resumes based on keywords like “bachelor’s degree,” use an online assessment tool to evaluate candidates’ skills in data visualization or project management.
- Conduct Skills-Focused Interviews: Design interview questions that delve into candidates’ practical experiences and how they have applied their skills in real-world situations. Use behavioral interview techniques to assess how candidates have handled specific challenges and demonstrate their competencies. For example, instead of saying “Tell me about your experience with project management,” try “Describe a time when you had to manage a complex project with tight deadlines. How did you prioritize tasks and overcome obstacles?”
- Implement Continuous Skills Development: Foster a culture of continuous learning and development within the organization. Provide opportunities for employees to upskill and reskill, ensuring that their skills remain relevant and aligned with the company’s evolving needs. This can involve offering online courses, workshops, mentorship programs, or access to industry certifications. For example, provide access to online learning platforms like Coursera or LinkedIn Learning, or offer internal training programs on emerging technologies.
Weight-Loss Drug Coverage
Lawsuit Dismissed
A federal trial court has dismissed a proposed class action lawsuit against an insurer/health plan administrator alleging discrimination under Affordable Care Act (ACA) Section 1557 for failure to cover weight-loss drugs. The participant alleged that the insurer’s plan violated Section 1557 (which prohibits discrimination in certain health programs and activities based on race, color, national origin, sex, age, or disability) because it excluded prescription drug coverage for commonly prescribed weight-loss medications if they were prescribed solely to treat obesity. She argued that she did not have access to the prescription medications required to treat her obesity (which she alleged was a disability and diagnosed health condition), while other participants had access to prescription medications medically necessary to treat their diagnosed health conditions, including the same or similar medications.
Concluding that the participant’s allegations did not support a finding of disability under Section 1557, the court dismissed the case. It determined that the participant had not plausibly shown that she was disabled merely as a function of her body mass index, nor that the insurer had ever regarded her as disabled. Pointing out that disability is an essential element of a Section 1557 disability discrimination claim, the court held that the participant had failed to state a claim for relief.
Section 1557 protects against discrimination on grounds prohibited under specified federal laws, including (as relevant here) the Rehabilitation Act of 1973. That law prohibits discrimination on the basis of disability, which is defined as a physical or mental impairment that substantially limits one or more major life activities as evidenced by a permanent or substantial impairment. Although this participant did not present sufficient evidence of impairment, the plan did provide coverage for individuals with “clinically severe obesity,” which likely provided coverage for individuals with disabilities under the Rehabilitation Act and Section 1557.
Health Care Price Transparency
Is a Presidential Priority
The President has issued an executive order that is intended to promote access to health care prices and improve existing price transparency requirements and enforcement. Following a similar executive order issued in 2019, the DOL, HHS, and IRS issued transparency in coverage (TiC) regulations that require most group health plans and insurers to make extensive price disclosures to the public in machine-readable files updated monthly. The disclosures must show negotiated rates for covered items and services between the plan or insurer and in-network providers, as well as historical payments to, and billed charges from, out-of-network providers. The regulations also require plans and insurers to disclose individualized cost-sharing information upon request to a participant, beneficiary, or enrollee, including an estimate of the individual’s cost-sharing liability for covered items or services furnished by a particular provider.
Executive Order 14221 directs the DOL, HHS, and IRS to take “all necessary and appropriate action” to implement and increase enforcement of the TiC regulations. Within 90 days, the agencies are to take action to require the disclosure of the actual prices of items and services, rather than estimates. They are also directed to issue updated guidance ensuring pricing information is standardized and comparable across plans, along with updated enforcement policies.
The executive order does not change any laws or regulations, and its ultimate impact will not be known until the agencies issue the requested regulations and guidance. Nevertheless, sponsors of employer-provided health plans and their advisors will appreciate the heads-up that changes and increased enforcement may be coming in 2025.
