Building Talent for Tomorrow: how to leverage transferable skills through psychometrics to address the youth unemployment crises

Objective / Research Problem / Problem Statement
In the context of global bulk recruitment, organisations face the challenge of sourcing the correct talent at scale in a context where high youth unemployment rates need to be addressed. Traditional recruitment models often rely on academic credentials, which can exclude candidates with relevant but non-traditional qualifications. However, a trend globally suggests that companies are starting to move away from this practice – NACE’s Job Outlook 2024 update survey suggests that 20% of employers are considering removing a college degree as a key requirement for entry-level positions. Further, in a South African context, many of our candidates complete their schooling in sub-optimal contexts, which severely impacts their ability to achieve GPA scores that South African companies usually target as a key criterion to take part in their bulk processes (usually 65% as a minimum). This study explores how using psychometric data can shift the focus to transferable skills rather than academic degrees, which can provide an innovative and inclusive solution, ensuring that bulk recruitment processes are efficient, fair, and responsive to current workforce demands. This shift is particularly crucial in addressing the limited entry pathways for young job-seekers, where a lack of employment opportunities compounds the youth unemployment crisis.
Theoretical Foundation / Application / Methodology / How Problem Was Addressed
Our theoretical foundation is grounded in the World Economic Forum’s (WEF) “New Vision for Education” report, which emphasises 21st-century skills essential for thriving in today’s global workforce, such as critical thinking, problem-solving, and collaboration. Traditional education systems often do not equip students with these competencies, creating skill gaps affecting developed and developing nations. This presentation aims to show how we can bridge these skill gaps through data-driven recruitment strategies by leveraging the insights from this report and research on emerging trends in graduate employment.
To address this problem, we conducted a case study using psychometric data from over 10,000 candidates who applied to various industry high-volume intakes in 2024 (e.g., banking, retail, technology, FMCG, etc.). Candidates were grouped based on their cognitive potential, job complexity levels (senior manager to junior specialist roles), and behavioural preferences. Additionally, three individual case studies will be shared to illustrate the practical application of this skills-first approach.
Results
The analysis revealed that by shifting the focus from educational credentials to skills assessments and assessments of potential (using psychometric data), we can identify candidates suitable for diverse organisational roles and levels. Adopting a standardised assessment methodology allows for an inclusive recruitment process, effectively matching candidates to positions that suit their potential and skills, regardless of their formal education. This skills-based recruitment process will enable companies to accurately identify and use transferable skills to identify potential across different industry roles and complexity levels.
Implications and Conclusion
The findings underscore the potential of applying psychometric data to address key recruitment challenges and youth unemployment by unlocking candidate potential that may be overlooked in traditional degree-focused approaches. By adopting global trends in focusing on transferable skills, we can mitigate the high volume of underutilized candidates and provide alternate pathways to employment for young job seekers.