Skills-Based Hiring Is on the Rise as Companies Recruit for Potential

As the job market becomes more competitive, companies are turning to skills-based hiring, prioritizing a candidate's abilities and potential over their formal education. According to recent findings, the trend of skills-based hiring has seen a significant increase of 63% in the past year, as employers increasingly place a higher value on experience over academic qualifications.

This approach to hiring offers numerous benefits, including the expansion of the talent pool for employers, and the removal of career and salary limitations for those without a bachelor's degree. As a result, skills-based hiring not only broadens the pool of potential candidates but also increases the speed of the hiring process and promotes diversity in the workplace.

The shift towards skills-based hiring is also being driven by the growing number of industries, such as computer support and software engineering, that no longer require a formal degree to perform job functions. A study by the Burning Glass Institute revealed a decline in the number of jobs requiring a college degree, from 51% in 2017 to 44% in 2021.

As skills continue to be the primary currency of the labor market, it is expected that the trend towards skills-based hiring will only continue to accelerate in 2023.