Skills-Based Hiring: Looking Beyond Degrees and Papers

What is Skills-Based Hiring?

Candidates can now learn almost any skill on their own time via e-books, online modules, and virtual lectures. What does this mean for talent acquisition? With reskilling and upskilling giving applicants more ways to prove their know-how and expertise, skills-based hiring is a shift HR teams can welcome with open arms.

And so, we’re seeing the rise of new collar jobs. These careers typically prioritize hands-on experience from on-the-job training, such as coding bootcamps or machinery apprenticeships. Rather than a traditional four-year college degree and hundreds of hours sitting in lectures and writing assignments, these jobs may become the norm with the rise of AI. 

Over 17 million Gen Z employees entered the workforce in 2023, and they were projected to exceed Baby Boomers' numbers before 2025. Leading organizations are leveraging AI-driven tools, skills assessments, and data insights to identify top talent based on competencies rather than resumes alone—championing workforce diversity, agility, and innovation.

Skills-Based Hiring: News and Case Studies

Some organizations have already hopped on the trend of skills-based hiring. IBM, for example, faced a talent shortage, particularly in tech-related fields and wanted to create a more inclusive and equitable hiring process. Assessment scientists even propose that prioritizing skills in candidates is most predictive of job success!

So, what did they introduce? The HR team launched their “New Collar Jobs” initiative, which prioritizes skills over formal degrees for positions like cybersecurity analysts and cloud computing specialists. In addition, they also introduced the Apprenticeship Program, which helps candidates pivot into technology, wherever they are in their career journey.

LinkedIn’s Skills-Based Hiring (SBH) Tools

LinkedIn, the world’s largest professional networking platform, noticed that traditional hiring practices were leaving out talented individuals who had relevant skills but lacked formal education. To tackle this, they built SBH tools into its platform, helping recruiters focus on skills over credentials.

Accenture’s Skills Focus

Accenture, a global leader in digital strategy, faced a skills gap in emerging technologies and wanted to recruit a diverse workforce. The organization overhauled its hiring approach to zoom in on applied skills rather than degrees.

Benefits of Hiring for Skills

From soft skills to transferable skills, assessments could score candidates on qualities outside of their immediate technical expertise.

These interpersonal traits and emotional intelligence demonstrate a candidate’s ability to collaborate, contribute to a positive work environment, and navigate challenges effectively. So, when organizations put skills first in the hiring process, they can build stronger, more resilient teams that thrive in a rapidly evolving business landscape.

Addresses Skill Gaps and Expands the Talent Pool

Many skilled professionals, especially self-taught individuals or those from non-traditional backgrounds, get filtered out when degree requirements are strictly enforced. Hiring based on skills allows organizations to tap into a broader talent pool and have the potential to close critical skill gaps.

For example, a company looking for software engineers might typically require a computer science degree, but skilled developers from coding bootcamps, online courses, or self-learning paths can be just as qualified.

Increases Workplace Diversity and Inclusion

Relying on credentials can create barriers for underrepresented groups who may not have had access to formal education, but possess the skills needed for success.

Organizations like Accenture and PwC have dropped degree requirements for many consulting and tech roles. They’re hiring candidates from diverse backgrounds, including military veterans, career changers, and professionals without traditional four-year degrees.

Adapts to the Future of Work

Industries are evolving rapidly, and businesses that solely focus on credentials may miss out on candidates with emerging, in-demand skills—especially in tech-driven fields. Larger organizations such as Google, Salesforce, as well as Spotify have pivoted away from looking specifically for formal degrees to focus on candidates’ skills.

The digital marketing industry, for example, values skills like SEO, content strategy, and data analytics more than formal education. Agencies like Wpromote and Neil Patel Digital regularly hire professionals based on their portfolio, certifications, and real-world campaign success, rather than requiring marketing degrees.