Why Skills-Based Hiring is the Future of Recruitment
The Shift Towards Skills-Based Hiring
For decades, recruitment has been built around one core principle: experience matters most. Job descriptions have prioritised years in a role, degrees, and specific career backgrounds over actual capabilities. However, this approach is no longer sustainable.
Instead, companies are shifting towards skills-based hiring—a recruitment strategy that prioritises a candidate’s skills, competencies, and potential rather than just their work history.
According to LinkedIn’s Global Talent Trends Report, companies that embrace skills-based hiring see a 60% increase in hiring efficiency and a 20% boost in workforce diversity.
So, what makes skills-based hiring so effective, and how can businesses implement it successfully?
WHAT IS SKILLS BASED HIRING?
Skills-based hiring is a recruitment approach that evaluates candidates based on their technical abilities, soft skills, and competencies rather than focusing primarily on degrees or job titles.
Instead of filtering applicants based on traditional requirements—like a Bachelor’s degree in X field or 5+ years of experience in a similar role—employers assess whether a candidate has the necessary skills to succeed in the role.
This method is particularly valuable in industries where technology is evolving rapidly, making traditional experience requirements outdated.
✅ Example: A company looking for a digital marketing manager may prioritise SEO expertise, data analytics skills, and content strategy knowledge over whether the candidate has a marketing degree or not.
THE PROBLEM WITH EXPERIENCE BASED HIRING
WHY SKILLS BASED HIRING IS THE FUTURE
HOW TO IMPLEMENT SKILLS BASED HIRING IN YOUR ORGANISATION
GET IN TOUCH
Ready to move beyond CVs and start hiring based on real skills? Testgrid’s assessment tools help businesses identify top talent, reduce hiring bias, and build high-performing teams.
If you want to talk to one of our experts about our tailored solutions, get in touch with our team here, or call 03 9040 1700 to learn more.