Building a More Effective Team with Skills-Based Hiring

For decades, hiring has followed a predictable formula: degrees and years of experience determine who gets an interview, and, eventually, the job. But the workplace has changed, and that approach is becoming outdated. More companies are shifting to skills-based hiring, where what matters most is what a candidate can do, not the credentials they have on paper.

What Is Skills-Based Hiring?

Instead of filtering candidates by degrees or job titles, skills-based hiring focuses on whether someone has the abilities needed to succeed. This approach opens the door to a wider, more diverse talent pool, tapping into professionals with non-traditional backgrounds, on-the-job  expertise, and industry-specific skills that may not fit a conventional resume.

Why is Skills-Based Hiring Becoming a Popular Choice

There are several reasons why skills-based hiring practices are being adopted more and more frequently. Namely, the benefits come down to having a larger candidate pool, a reduction in hiring time, and finding better-fit employees, thus improving productivity, morale, and retention (Indeed).

As the talent shortage continues and companies are struggling to find qualified candidates, focusing on skills, rather than degrees, allows access to a broader, more diverse range of talent, including career changers with transferable skills and workers with hands-on experience.

Beyond the expanded talent pool, companies have found that employees who are hired based on what they can do, rather than what’s on their resume, tend to perform better and stay longer. Companies that use skills-based hiring report 9% longer employee tenure (BCG). Many companies have found that skills-based hiring reduces time-to-hire and lowers the risk of making the wrong hire. In fact, 81% of companies say this approach speeds up hiring, and 90% report fewer bad hires (TestGorilla). According to McKinsey & Company, employee performance can be predicted 5x better when examining skills over education and 2x better when assessing skills rather than just work experience. 

How to Implement Skills-Based Hiring

Switching to a skills-first hiring approach takes a shift in mindset and process. Here’s how to make it work:

1. Rewrite Job Descriptions to Focus on Skills

Many job descriptions filter out great candidates by requiring degrees or years of experience that aren’t actually necessary. Instead, clearly outline the core skills needed to succeed.

• Instead of: “Bachelor’s degree required, 3+ years of experience in social media management.”

• Try: “Proficiency in social media strategy, content creation, and data analytics. Experience using Meta Business Suite, LinkedIn Campaign Manager, and Google Analytics.”

2. Use Skills Assessments and Real-World Tasks

Instead of just relying on interviews, ask candidates to complete a practical task relevant to the role. If hiring a content writer, have them write a sample article. If hiring a developer, give them a coding challenge. These assessments provide direct insight into their actual capabilities.

3. Expand Where You Look for Talent

Not everyone who has the right skills took a traditional path to get there. Consider candidates from bootcamps, online courses, apprenticeships, and self-taught backgrounds. Look beyond degrees and focus on demonstrated expertise.

4. Train Hiring Managers to Recognize Transferable Skills

Many recruiters default to looking for specific degrees or previous job titles. Shift the focus to evaluating how candidates’ experiences, regardless of industry, translate into skills for the job.

5. Leverage AI and Skills-Matching Technology

Many HR platforms now use AI to match candidates based on their skills, rather than just their resume. These tools help employers identify top talent they might otherwise overlook.

Looking Ahead

Skills-based hiring is the future of hiring. Companies that embrace this approach are building stronger, more agile teams while creating more opportunities for qualified talent.

It’s time to rethink how we define qualifications. The best person for the job might not have a traditional resume, but they have what it takes to get the job done. If your workplace is ready to make the switch, we can help! Contact us today to learn more.