Earlier this spring, LinkedIn published an article citing that 73% of recruiters believe that skill-based hiring is a priority. In fact, skill-based hiring is emerging as a new approach that prioritizes candidates’ skills and competencies over traditional metrics such as degrees and job titles. This method not only reshapes the way recruiters evaluate potential employees but also influences how candidates prepare for job opportunities and how employers benefit from hiring strong, capable candidates.  

The Shift to Skill-Based Hiring 

Skill-based hiring focuses on evaluating a candidate’s specific abilities and expertise that are directly relevant to the job. This shift is driven by several factors, including the growing importance of technical skills in many industries, the rapid pace of technological advancement, and the increasing recognition that traditional hiring metrics do not always correlate with job performance.  

With skill-based hiring, recruiters and hiring managers are looking at certifications, coursework, and other evidence that shows the candidate has exposure to certain skills. In many cases, candidates are asked to perform skills assessments. This contrasts with traditional methods, where degrees, education, and previous job titles are key focus areas. Here is a comparison between the two approaches: 

Criteria for Evaluation: 

• Skill-Based Hiring: Focuses on the candidate’s ability to perform specific tasks and apply relevant skills. Evaluations are based on practical tests, real-world problem-solving, and demonstrated competencies. 

• Degree-Based Hiring: Relies on formal educational qualifications as a primary criterion. Degrees are often seen as proxies for a candidate’s knowledge and capability. 

Flexibility: 

• Skill-Based Hiring: More flexible as it opens doors to candidates from various educational backgrounds, including those with non-traditional or self-taught skills. 

• Degree-Based Hiring: Less flexible and can exclude talented individuals who lack formal education but possess the necessary skills. 

Diversity: 

• Skill-Based Hiring: Promotes a diverse workforce by valuing practical skills over formal education, thus including individuals from varied socio-economic backgrounds. 

• Degree-Based Hiring: May limit diversity by favoring candidates from more privileged backgrounds who have had access to higher education. 

Relevance to Job Performance: 

• Skill-Based Hiring: Directly correlates with job performance as candidates are assessed based on their ability to perform job-specific tasks. However, candidates may not be as well rounded in their exposure to a variety of duties. 

• Degree-Based Hiring: The correlation between formal education and job performance can be weaker, especially in rapidly changing industries where new skills emerge quickly. On the other hand, these candidates might be more adaptable to a wider range of job functions. 

Time and Resources: 

• Skill-Based Hiring: Can be time-consuming and resource-intensive due to the need for detailed assessments and customized evaluations. 

• Degree-Based Hiring: Typically, quicker and less resource-intensive as it relies on readily available educational credentials. 

Interviews Are Different When Skill-Based Hiring Is Used 

Recruiters using skill-based hiring design interviews that include structured skill assessments, practical tasks, and real-world problem-solving scenarios. These assessments provide a clear picture of a candidate’s ability to perform the job. For technical roles, interviews might include coding tests, simulations, or case studies that reflect the daily tasks of the position. This gives a practical insight into the candidate’s proficiency. 

Also, interviews focus more on behavioral questions that explore how candidates have applied their skills in past situations. This helps in understanding their thought process, problem-solving abilities, and adaptability. 

How Candidates Can Prepare for Skill-Based Interviews 

Candidates should start by creating a comprehensive inventory of their skills, including both hard and soft skills. This inventory should be backed by examples from their past work experiences. 

Building a portfolio that showcases completed projects can be highly beneficial to bring to the interview or include in the application documents. This presentation of accomplishments can set a candidate apart during interviews. 

Staying current with industry trends and continuously upgrading skills through courses, certifications, and self-learning is crucial. This not only enhances employability but also shows a commitment to professional growth. 

Benefits for Employers 

Employers may notice better job performance from hires made through skill-based assessments since the new hire has already proven their competencies. Employees are more likely to excel in roles that match their skills and strengths. This in turn often leads to better job fit, which can reduce employee turnover. Employees who feel their skills are well-utilized are more likely to be satisfied and stay longer in their roles. 

Soft Skills Still Matter with Skill-Based Hiring  

While technical skills are paramount in skill-based hiring, soft skills should not be overlooked. Attributes like communication, teamwork, adaptability, and problem-solving are crucial for a candidate’s overall performance and integration into the company culture. Recruiters should ensure that their evaluation processes balance technical assessments with an appraisal of soft skills to get a holistic view of the candidate’s potential. This can be achieved through situational judgment tests, role-playing exercises, and thorough reference checks. By giving due importance to soft skills, recruiters can build well-rounded teams capable of thriving in dynamic work environments. 

Pros and Cons of Skill-Based Hiring 

While many recruiters and human resources professionals use the skill-based hiring process, there are some potential trade-offs. 

Pros: Skill-based hiring provides a more accurate assessment of a candidate’s ability to perform specific tasks, leading to better job matches. This approach opens opportunities for a wider range of candidates, promoting diversity and inclusion within the workforce. Employees hired based on skills are ready on day one to contribute effectively to their teams. Employers can adapt quickly to changing business needs by hiring candidates with the specific skills required for new challenges. 

Cons: Implementing skill-based assessments can be time-consuming and resource-intensive for recruiters and hiring managers. If not carefully designed, skill-based tests can introduce bias, disadvantaging certain groups of candidates. There is a risk of overemphasizing technical skills at the expense of soft skills, which are also critical for many roles. Candidates unfamiliar with skill-based hiring may find it challenging to prepare, potentially leading to stress and lost opportunities. 

What About Degrees and Credentials? 

Degree-based hiring is still relevant and should not be disregarded. Examples that come readily to mind include professions such as engineering, medicine, law, and academics. But even in other professions, degrees can inform a candidate’s readiness for the job. Because it doesn’t always boil down to an either/or situation, employers may choose to blend both approaches. Many qualified candidates will have both the formal education and the skills needed for a given position.  

If you want help with interviewing, recruiting, and candidate assessments, reach out! Zing Recruiting can help.