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The Rise of Skills-Based Hiring

Published on: 21 Apr 2023

The Rise of Skills Based Hiring

Skills-based hiring is increasingly used by major companies such as Google, Apple, IBM, Mastercard and Bank of America. This trend has big implications for how colleges and other educational programs prepare people for jobs and careers.

Hiring employees based on demonstrated skills, not just educational attainment, will lead to a more diverse workforce and provide opportunities for people with workforce skills but no college degree or different industry experience to obtain better-paying jobs.

While degrees will remain an important credential, decision makers may begin to tackle these challenges by offering more career-focused skills training in their programs to help graduates enter in-demand jobs with more relevant & applicable skillsets. Hiring based on skill is 5 times more predicative of future job performance than education hiring and 2.5 times more predictive of work performance than experience. 



5 Reasons Why Skills Based Hiring is on the Rise

  1. The current tight labour market and talent shortages
  2. Cyclical post-covid reset of the jobs market
  3. Decline in college enrolments worldwide
  4. Degree criteria lending towards human bias and exclusion
  5. The rising popularity of STARS - Skilled Through Alternative Routes


10 Benefits of a Skills Based Hiring Approach

  1. Attracts more candidates for job openings
  2. Expands the talent pool
  3. Improves diversity hiring
  4. Creates higher quality candidates
  5. Accelerates time to hire
  6. Reduces hiring costs
  7. Increases equity and inclusion
  8. Increases longer term staff retention
  9. Helps to place harder to fill roles faster
  10. Reduces degree inflation


Download the ManpowerGroup Skills-Based Hiring Report here.