A recent report by Remote said hiring decisions are now more often based on skills rather than academic credentials, and this trend has increased by 63% in the last year.

The report said employers’ access to a larger talent pool is increased by skills-based hiring, which also lowers salary and career barriers for workers without a bachelor’s degree.

Employers benefit from skills-based hiring because it increases hiring efficiency, diversifies the workforce’s perspectives, and widens the talent pool.

This shift is speeding up as more and more occupations, like those in computer support and software engineering, don’t require a degree to be employed. According to an analysis of millions of online job postings by the Burning Glass Institute, the proportion of positions requiring a college degree has decreased.

The shift toward this type of hiring will increase in 2023 as skills emerge as the currency of the labour market.

What it means for candidates: Many candidates appear to prefer a hiring process that includes skill-based assessments. This is because this type of hiring provides candidates with a better understanding of the requirements of the role they are applying for, as well as the opportunity to determine how well-suited they are for the role and whether it aligns with their career objectives.

  • Stephen Bamidele, the HR lead of an NGO, commented on the report saying: “many people begin their careers only to discover that they dislike the job, are not well-suited to it, or lack the necessary skills”.

What it means for employers: Skill-based hiring streamlines the hiring process because the longer and more complicated the hiring process, the less likely candidates are to complete it and remain invested in your brand and position.

  • Bamidele said: “for employers, it provides them with the ability to understand a candidate’s culture fit and motivation to join the company for better long-term alignment. This sort of hiring ensures new team members bring new skills, backgrounds, and perspectives”.

To save time, consider using a pre-employment testing platform that is unbiased and accurate as well as an applicant tracking system.