[2023 HR Trend] Skills-Based Hiring Is On The Rise Rather Than Degrees

Recent research conducted by Remote has revealed that skills-based hiring has experienced a significant increase of 63% in the past year as employers increasingly value experience over academic qualifications. This shift towards skills-based hiring is a welcome development that helps to remove career and salary barriers for over two-thirds of adults in the United States who do not hold a bachelor’s degree.

For employers, skills-based hiring not only broadens the talent pool but also increases the speed of hiring and promotes greater diversity of thought in the workforce. Furthermore, it helps to address the skills gap that exists in many industries, particularly those in the technology sector, where demand for specific skills often outstrips supply.

This shift towards skills-based hiring is accelerating as an increasing number of professions, including those in computer support and software engineering, do not require a degree to perform their roles. A study by the Burning Glass Institute, which analyzed millions of online job listings, found that the number of jobs requiring a college degree dropped from 51% in 2017 to 44% in 2021.

One of the main reasons for this shift towards skills-based hiring is the recognition that academic qualifications do not necessarily equate to job readiness or competence. Many employers are realizing that experience and specific skills are often more valuable than a degree in certain industries. Moreover, a degree can be a significant financial burden for many people, particularly those from marginalized communities. By prioritizing skills over academic qualifications, employers can broaden their talent pool and promote greater diversity and inclusivity in their workforce.

In 2023, skills are set to emerge as the currency of the labor market. This means that skills-based hiring will continue to gain momentum, with employers placing a greater emphasis on identifying and nurturing specific skills that are in high demand. This is good news for job seekers who may not have a degree but have the skills and experience needed to excel in their chosen field.

To support this shift towards skills-based hiring, employers must adapt their recruitment processes to focus on assessing candidates’ skills rather than just their academic qualifications. This may involve using skills-based assessments, interviewing techniques, and performance-based evaluations to determine a candidate’s suitability for a role. Employers can also invest in upskilling and reskilling programs to help existing employees develop the skills they need to progress within the organization.

In conclusion, the shift towards skills-based hiring is a positive development that benefits both employers and job seekers. By broadening the talent pool and promoting diversity and inclusivity in the workforce, employers can gain a competitive advantage in the labor market. As skills become increasingly valued, employers must adapt their recruitment processes to focus on assessing candidates’ skills rather than just their academic qualifications. This will enable them to identify the best candidates for their roles and support the development of their existing employees.