The influence of skill-based hiring on job performance in the banking sector: The mediating role of continuous learning

Abstract

Orientation: Banks aiming to enhance human resources and achieve optimal job performance increasingly need to adopt non-traditional recruitment approaches, particularly skill-based hiring, as a strategic alternative to traditional experience- and qualification-based practices.
Research purpose: This study seeks to examine the relationship between skill-based hiring and job performance in the banking sector, while investigating the mediating role of continuous learning in this relationship.
Motivation for the study: Despite the growing interest in skill-based employment, empirical evidence on its impact on job performance remains limited in both global and local contexts. Furthermore, the mediating role of continuous learning between skill-based hiring and job performance has not been sufficiently examined or clearly explained.
Research approach/design and method: Using stratified random sampling, 365 bank employees (HR managers, HRM staff, training staff, and general employees) completed a structured questionnaire. Data were analysed using (SEM.).
Main findings: Skill-based hiring and continuous learning both significantly improve job performance. Skill-based hiring also promotes continuous learning, which mediates its effect on performance.
Practical/managerial implications: Banks should shift from traditional hiring practices toward a skill-oriented framework by focusing on competency-based job descriptions, effective skill assessment methods, behavioural and situational interviews, and fostering continuous learning Soft skills.
Contribution/value-add: This study can enhance existing knowledge concerning the mechanisms and methodologies of skill-based recruiting and its effect on job performance.