Skills-based hiring isn’t just a trend; it’s the future.
Nearly two-thirds of employers (64.8%) report using skills-based hiring practices for new entry-level hires, according to the National Association of Colleges and Employers. The world of work is shifting fast. Technology, automation, and evolving employee expectations are reshaping roles and creating jobs that didn’t exist just a few years ago. To keep up, organizations need new ways of thinking about talent. That’s where skills-based hiring comes in.
What is skills-based hiring?
Instead of focusing on degrees or years of experience, skills-based hiring prioritizes what really matters: the capabilities people bring and their potential to grow.
This approach opens doors for more candidates and helps organizations build agile, future-ready teams.
Skills-based hiring is a recruitment strategy that evaluates candidates based on their actual skills and competencies, rather than relying on proxies such as education or job titles.
Instead of asking:
- “Where have you worked before?”
- “What degree do you have?”
The focus shifts to:
- “What skills do you have today?”
- “How quickly can you adapt and learn tomorrow?”
This shift helps companies uncover overlooked talent, improve diversity, and strengthen their workforce.
4 key benefits of skills-based hiring
1. Better quality hires
When hiring is based on skills, candidates align with the role from day one. This leads to higher engagement, productivity, and performance. In fact, research from the National Skills Coalition found that 92% of jobs require digital skills, but one in three workers lacks even the most basic skills.
2. Access to a broader talent pool
Many candidates have the right skills but don’t meet traditional requirements. A cashier, for example, may already have most of the skills needed for a customer service role. Removing unnecessary degree or experience requirements expands access to a more diverse talent pool.
3. Reduced bias and stronger diversity
Traditional hiring can unintentionally exclude candidates from underrepresented groups. Skills-based hiring levels the playing field by focusing on objective skills. The result? A more inclusive pipeline that fuels innovation.
4. Higher retention and internal mobility
Employees hired for their skills and given opportunities to grow them are more likely to thrive and stay longer. Linking skills-based hiring with learning and development boosts both retention and career mobility.
How to put skills-based hiring into practice
Shifting to a skills-first hiring strategy doesn’t have to be overwhelming. Start small, measure outcomes, and scale over time.
- Revamp job descriptions: Highlight required skills and competencies, not degrees or arbitrary years of experience.
- Expand sourcing channels: Look beyond resumes and tap into skills certifications, bootcamps, and professional communities.
- Screen with skills in mind: Use structured criteria, blind reviews, or skills-based assessments to reduce bias.
- Use structured interviews: Ask consistent, skills-focused questions that reveal real-world applications.
- Incorporate skill assessments: Tools like coding tests or assessments, such as OpenSesame’s Oro, can help identify skills gaps and map them to courses to understand where you can improve.
- Align compensation with skills: Reward the impact employees bring and support upskilling and reskilling paths.
The future is “skills-first”
Skills-based hiring does more than fill open roles; it builds resilience for the future of work. Organizations that adopt this approach:
- Adapt quickly to new challenges
- Build inclusive, innovative teams
- Unlock internal mobility and career growth
- Position themselves for long-term success
Ready to make the shift?
Explore a Guided Demo to understand how OpenSesame can help your organization embrace skills-first hiring and build a workforce prepared for the future.
FAQs
What is skills-based hiring?
Skills-based hiring evaluates candidates on their competencies and potential, rather than focusing on degrees or job titles.
Why is skills-based hiring important?
It improves hiring quality, expands talent pools, reduces bias, and strengthens workforce agility.
How do you implement skills-based hiring?
Start by rewriting job descriptions, using skill assessments, and adopting structured interviews.
What companies use skills-based hiring?
Many global organizations, including IBM and Accenture, are shifting to skills-first approaches.
How does it affect retention?
Employees hired for their skills—and given opportunities for growth—are more likely to stay and advance.