Revolutionising Recruitment: The Rise of Skills-First Hiring

What is skills-first hiring?

According to the World Economic Forum, skills-first hiring is an approach to talent management that focuses directly on skills rather than how candidates acquire them. Employers will put the candidate's skills at the forefront of their hiring strategies by recognising an individual for their capabilities and adjusting roles to embrace the skills required to do well. Whilst it doesn't mean ignoring traditional recruiting, skills-first hiring increases workforce opportunities at all levels. 

What are the benefits?

There are many benefits to skills-first hiring to help employers to expand their talent pool. By focusing on skills, employers can find candidates from a broader range of backgrounds and experiences, leading to a more diverse and inclusive workforce. Skills-first hiring can help employers to improve their hiring accuracy. When employers focus on skills, they are more likely to find candidates capable of doing the job. This can lead to a reduction in turnover and an increase in productivity. Employers can avoid the costs associated with traditional hiring methods, such as advertising, recruiting, and interviewing.



Research shows that it can be five times more predictive of job performance than hiring based on education. Cited in LinkedIn analysis, research shows that over 75 per cent of recruiting professionals expect skills-first hiring to be prioritised over the next 18 months, spanning a myriad of industries from financial services to real estate and specialised sectors such as mining, gas and oil. Smaller companies can adapt more efficiently; there is less red tape to fight through, so they can change their policies quicker. 

According to the LinkedIn report, there are many benefits of skills-first hiring, including up to 20 times more eligible workers in employer talent pools, increasing global talent for those without bachelor’s degrees, growing the proportion of women by almost a quarter where they are unrepresented, particularly in technology, engineering and construction. It also states that skills-first hiring substantially increases the talent pool for Gen X, Millennial and Gen Z workers. 

According to the report, the skills-first approach goes beyond the hiring phase with significant impacts throughout the employment cycle. Investment in learning and growth is a crucial key to employee retention. Companies that shine at internal mobility retain employees for an average of 5.4 years.

When employers consider more than education when hiring for a role in the United States of America, they are creating a more equitable pool of talent. Almost 70 per cent of jobs require a bachelor's degree. However, only 37 per cent of the population are university graduates, eliminating over 50 per cent of candidates. Yet, they may have the skills to succeed despite their lack of a college degree. 

How do you implement skills-first hiring?

Adjust the key language in job postings by using inclusive job descriptions and emphasising transferable skills to attract more diverse and capable candidates. Avoid unnecessarily restrictive requirements such as a college degree, particularly as many as 50 per cent of people have acquired their skills through alternative routes. Use more precise and thoughtful language using hard and soft skill requirements. 

Test a candidate's abilities through targeted exercises

Employ skills tests and case studies in your interview armoury. For example, you could present a case study and ask candidates how they would react to a real-life situation; your assessment of their reaction can reveal and help you identify a skill fit. 

Include your team 

Each person who plays a role in the hiring process should have a good understanding of skills-first hiring and which skills should be prioritised during the interview process so that the candidate’s future manager and team should align with the interview questions and test scenarios. Skills-first hiring works well with entry-level positions that your department champions can identify the candidate’s skills from the outset and simplify future on-the-job training and what their career path looks like

Using skills-first hiring to fill entry-level jobs and ensure that you have champions within those departments to institute a skills-first hiring approach is a good idea. The upshot: You'll be able to identify key skills in candidates from the get-go, simplifying future on-the-job training and mentoring.

LinkedIn's newly released skills-first report shows that the labour market is full of missed opportunities where candidates are not matched to positions that could positively impact companies. It clarifies that workplaces must rethink how to prepare future workforces and equitably match talent with jobs.

Skills-first for recruiters

During the past year, almost 50 per cent of recruiters have explicitly used skills data to help fill their roles. LinkedIn site users have added 380 million skills, including certification, to their profiles in response to this trend. 

How skills-first hiring helps counteract labour shortages

The LinkedIn report addresses current economic uncertainties and says that “the ratio of jobs to applicants remains nearly double the pre-pandemic average in several countries” and will continue to exist for the foreseeable future. By using the skills-first approach, employers can expand the talent pool to fill open roles allowing economies to adapt more quickly and help candidates transition into jobs that are in demand and match their capabilities by excluding traditional criteria such as job titles and qualifications. 

How employers can use the skills-first approach to hiring

In most cases, employers will find that candidates have transferable skills that can be applied to a role, even if the candidate comes from a hugely different industry. These skills include leadership and technological abilities. The increased talent pool makes it easier for employers to find suitable candidates.

An organisation can apportion a specific set of skills needed for a candidate to do the job well. Every person has a set of skills, whether an existing employee or part of an external talent pool. Employers need a better understanding of what skills are required to do the jobs at their company so they can take a more equitable approach to finding talent with those skills. For a skills-based hiring process to work, recruiters should place skills at the centre of recruitment and internal hiring. Employers have the chance to reimagine the labour market, break down barriers, and build a world where everyone has access to opportunity and success. 

If employers want to improve their hiring process, skills-first hiring is a more equitable and effective way to find talent. Skills-first hiring can help to break down barriers to employment, help level the playing field for people without access to traditional educational opportunities and create a more agile workforce who adapt quickly to changes in the job market.