Why skills-first hiring is growing and where organisations are struggling

Skills-first hiring is gaining traction as organisations look for more inclusive and adaptable ways to access talent. Rather than focusing on where candidates studied or which companies they have worked for, this approach prioritises what people can actually do. In a labour market shaped by rapid technological change, persistent skills shortages and evolving job roles, skills-first hiring is increasingly viewed as a practical alternative to traditional recruitment models.

The appeal is clear. By shifting attention away from credentials and career history, skills-first hiring aims to widen talent pools, reduce unconscious bias and improve workforce mobility. It is often positioned as a way to unlock overlooked talent, particularly among career changers, returners to work and individuals who have developed valuable skills outside formal education. However, while adoption is accelerating, consistent execution remains a challenge for many employers.

Skills-first hiring is now firmly on the agenda, but belief in the model does not always translate into effective implementation.

“Belief in skills-first hiring is stronger than ever. However, sustainability and execution remain barriers to success.”

In a recent survey released, it was found globally that 85% of organisations are now using skills-based hiring in some form, reflecting steady growth year on year. Despite this momentum, implementation remains inconsistent. Only a minority of organisations apply skills-first hiring uniformly across all teams, highlighting a clear gap between intent and execution.

One of the most common challenges is organisational readiness. Resistance from senior leadership can slow progress, particularly in environments where academic qualifications and linear career paths have long been treated as proxies for capability. Alongside this, many organisations lack the internal resources and expertise required to redesign roles, assessment frameworks and hiring processes around skills rather than credentials.

Assessment itself remains a major barrier. Hiring managers frequently report difficulty in evaluating skills directly, especially for roles that require a blend of technical, behavioural and transferable capabilities. This is compounded by unclear or outdated job descriptions, where skill requirements are poorly defined or overly broad, making it harder to assess candidates fairly and consistently.

Training is widely seen as a critical enabler of success. Despite strong interest in skills-first hiring, only around half of hiring managers report receiving any formal training on how to apply the approach effectively. Support is most commonly needed around defining skills, selecting appropriate assessment methods and interpreting results with confidence.

Leadership alignment also plays a crucial role. Organisations that make meaningful progress tend to have a clear business case linking skills-first hiring to performance, productivity and long-term workforce planning. This often involves modernising job architectures, updating systems and embedding skills-based thinking across talent strategies, rather than treating it as a standalone recruitment initiative.

Technology can help address some of these challenges. Skills-based assessment tools such as simulations, case studies and practical exercises are increasingly being used to provide a more accurate picture of candidate capability. When applied effectively, these tools can improve equity in hiring decisions and give candidates greater opportunity to demonstrate their strengths in real-world contexts.

Equally important is how skills data is managed. Treating skills information as core organisational infrastructure allows employers to build a clear view of existing capabilities, identify gaps and plan for future needs. A consistent skills framework can also support internal mobility, learning and development, and retention by aligning workforce capabilities with evolving business priorities.

Ultimately, skills-first hiring is not simply a minor adjustment to recruitment practices. It represents a strategic shift towards valuing adaptability, potential and continuous learning over traditional markers of success. Organisations willing to invest in training, leadership alignment and the right tools are better positioned to build resilient talent pipelines and respond to ongoing change in the world of work.

How can organisations make skills-first hiring work in practice?

• Clearly define the skills required for each role and remove unnecessary qualification barriers
• Provide formal training for hiring managers on skills identification and assessment
• Update job descriptions to reflect real capability needs rather than legacy criteria
• Use practical assessments, simulations and case studies to evaluate skills fairly
• Align leadership around a clear business case for skills-first hiring
• Treat skills data as a strategic asset for workforce planning and development