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The Rise of Skills-Based Hiring: A Game-Changer in Recruitment

  • Writer: Ivana Vukotic
    Ivana Vukotic
  • Apr 1
  • 6 min read

Updated: Jun 27


skills first hiring, skills hiring, hiring, recruitment, recruitment process outsourcing, serendi, rpo, DEI, talent acquisition, talent acquisition partner

Skills-based hiring is reshaping recruiting, moving the industry away from a qualifications-first mindset toward a model that prizes measurable competencies. The change is fueled by rapid technological advances, evolving business needs, and a growing realization that credentials alone can overlook high-potential talent.


According to research by SHRM, 81 % of employers used a skills-based approach in 2024, up from 73 % in 2023 and 56 % in 2022, showing the movement’s rapid acceleration. (1)


Forward-thinking talent teams now center their strategy on skills-based hiring practices: they write job postings that specify the capabilities that matter, use targeted assessments to verify them, and link the results directly to performance goals.


In the sections that follow, we explain why this skills-based hiring approach is gaining momentum, outline the advantages it offers, and break down its core elements.


What is Skills-Based Hiring


Skills-based hiring (or skills-first hiring) focuses on the concrete abilities candidates can prove rather than on college degrees or years of experience.

It measures the expertise candidates can demonstrate, no matter how they built it (four-year degrees or alternative routes). This makes the resume a supporting document, not the deciding factor.


By defining and testing the in-demand skills that drive success, employers tap broader, more diverse talent pools, cut bias, and speed up time-to-productivity, making hiring both fairer and more cost-effective.


How is Skill-First Hiring Different From Traditional Hiring Practices


Traditional hiring typically filters applicants by pedigree (college degrees, past job titles, and tenure), then moves them through resume screens and interviews that emphasize credentials and “culture fit.”


Skills-based hiring flips that script: recruiters first define the exact competencies tied to on-the-job success, then use targeted assessments, work samples, and a structured competency interview process to verify those abilities.


This shift broadens and diversifies the qualified candidate pool by welcoming self-taught or non-linear skilled workers, reduces pedigree-driven bias through objective testing of relevant skills, and shortens time-to-productivity because new hires already demonstrate the skills that matter.


In essence, traditional recruitment asks, “Where did you come from?” while skills-based recruiting asks, “Where can you take us next?”


Why is Skills-Based Hiring Important?


  • Aligning with the Evolving Workforce


The nature of work is evolving rapidly, with job roles becoming increasingly specialized. As a result, employers are placing greater focus on skills-based approaches. This implies finding candidates who possess competencies (specific technical skills and soft skills) that align with the demands of the job. Skills-first hiring enables organizations to be more agile in talent management and responsive to these changing workforce dynamics.


A skills-based hiring model can expand global talent pools by 6.1 times, while AI roles see an 8.2 × (about 720%) jump. This shift also boosts diversity: applying skills-first criteria in AI recruiting can raise the share of women candidates by up to 24%. (2)


  • Overcoming the Skills Gap


The skills gap, where employers struggle to find candidates with the skills they need, has become a major talent acquisition challenge across various industries. By prioritizing skills in the hiring process, companies can bridge this gap more effectively and ensure they have a workforce with skill levels adequate for their business objectives.


  • Reducing Bias and Discrimination


Traditional hiring processes often rely heavily on educational requirements and prior candidate experience, which can introduce bias and perpetuate inequalities. Skills-first hiring shifts the focus to what candidates can do rather than where they come from or what college degree they hold, reducing the potential for bias and promoting diversity, equity, and inclusion.


Benefits of Skills-First Hiring


  • Improved Job-Match


Skills-first hiring results in candidates who are better suited to the specific requirements of the job. This leads to reduced turnover, increased job satisfaction, and improved overall organizational performance.


  • Increased Efficiency


By emphasizing skills and competencies, employers can streamline the hiring process. Skills-based evaluations can quickly identify the most qualified candidates, saving time and resources.


  • Better Employee Development


When employees are hired based on their skills, organizations can tailor learning and development or internal mobility programs to enhance those skills further. This leads to a more skilled and capable workforce.


Key Elements of Skills-Based Recruitment


  • Skills-Based Job Descriptions


Traditional job listings often focus on educational qualifications and experience, which can be limiting. Skills-based job descriptions provide a clearer picture of what the role entails by specifying the key skills and competencies required.


  • Skills-Based Evaluations


Candidate interviews and assessments in skills-first hiring are centered around evaluating a candidate's skills and competencies relevant to the job. This might include practical tests, case studies, or portfolio reviews.


  • Skills Mapping


Employers can create skills matrices to track and assess the skills of their current workforce and identify gaps that need to be filled. This data-driven approach helps in strategic workforce planning.


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The Role of Talent Acquisition Partners in Skills-First Hiring


Talent Acquisition Partners play a pivotal role in shaping an organization's hiring strategy. Their responsibilities extend beyond sharing job postings and conducting interviews. In the era of skills-first hiring, they need to become strategic advisors and talent consultants, guiding the organization toward a more effective and skills-focused approach.


  • Skill Proficiency


Talent Acquisition Partners must have a deep understanding of the skills and competencies required for various roles within the organization. This involves continuous learning about industry trends, talent landscape, emerging technologies, and the evolving nature of job roles. They should collaborate closely with hiring managers to create comprehensive skills-based job descriptions and candidate skills assessments.


  • Data-Driven Decision-Making


Skills-first hiring relies on data-driven decision-making. Talent Acquisition Partners should be proficient in using data analytics tools to assess the current worker skills, identify skills gaps, and make informed hiring decisions. They should track the success of skills-based hiring strategies and adjust them as needed.


  • Consultative Approach


Talent Acquisition Partners need to adopt a consultative approach when working with hiring managers and department heads. Instead of simply processing requests for new hires, they should engage in in-depth discussions to understand the specific skills and competencies needed to achieve departmental and organizational goals.


  • Collaborative Relationship Building


Building strong relationships with hiring managers and department leaders is essential. While collaborating closely with them, Talent Acquisition Partners can gain insights into the changing skill requirements of their teams. Regular meetings and feedback sessions can help refine skills-based hiring strategies.


  • Candidate Assessment Expertise


In skills-based hiring, it's really about changing how we evaluate candidates. Talent Acquisition teams need to get good at creating and using different types of skill assessments. This includes things like hands-on tests, interviews that use real-life scenarios, and watching candidates show off their skills directly.


The idea is to look beyond just what's on the resume and really understand personal strengths and what someone can do. It's more about seeing their potential through their abilities, alternative credentials, and cognitive skills - not just their past job titles or college degrees.


  • Continuous Learning and Adaptation


The talent marketplace is continually evolving. Talent Acquisition Partners must be adaptable and open to new methodologies and technologies in hiring. Staying up to date with industry best practices and innovative tools for skills assessment is crucial.


  • Diversity, Equity, and Inclusion Advocacy


Skills-based hires can contribute to greater workforce diversity and inclusion by reducing biases associated with traditional hiring requirements. Talent Acquisition Partners should actively champion DEI initiatives and seek out a diverse pool of candidates with the necessary skills. One survey found that 80% of job seekers prefer employers who actively support diversity.


Skills-First Hiring: Conclusion


Skills-based recruitment is rapidly becoming the new standard. It offers numerous advantages, including better job matching, increased efficiency, reduced bias, and enhanced workforce development. As the world of work continues to evolve, organizations that prioritize skills over credentials in their recruitment process are likely to have a competitive edge in building and maintaining a skilled, diverse, and adaptable workforce.


By embracing this shift to skills, the recruitment industry can better meet the demands of the modern labor market and help individuals find opportunities and career pathways based on their abilities rather than their pedigree.


It is obvious that Talent Acquisition Partners play a central role in the success of skills-first hiring initiatives. They need to evolve from transactional recruiters to strategic partners who deeply understand the skills needs of the organization, are proficient in data-driven decision-making, and are adept at using innovative techniques to evaluate candidates based on their skills and competencies.


By developing skills intelligence and fostering close collaboration with hiring managers, Talent Acquisition Partners can contribute significantly to building a skilled and agile workforce that aligns with the evolving demands of the labor market.


In today's dynamic job market, embracing skills-first hiring is essential for staying competitive.


If you're looking to partner with experts in Talent Acquisition who can help you build a skilled, diverse, and future-ready workforce, don't hesitate to reach out to us.


Contact our team today to explore how our Talent Acquisition Partners can provide excellent solutions tailored to your organization's needs and goals.



About the Author


Ivana Vukotic is a Business Development Manager at Serendi.


With over 15 years of experience in human resources and recruiting, Ivana is well-versed in the dynamic developments of the talent market and provides tailored recruitment solutions for our clients.


“I’ve spent over a decade helping organizations across the Central and Eastern Europe region identify and develop talent, supporting over 20 businesses in their growth. I am constantly inspired by overachievers who push boundaries and set new standards, and I strive to bring that same drive to every aspect of my work, contributing to a 25% cost savings year-over-year to my clients.”


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