🖖 The Hiring Revolution is Here with Skills based Hiring

Hello! 👋

It’s Thursday, 7^th November, and and I’m thrilled to have you back for another edition of Bold Efforts. Today, we're diving into the hiring revolution that's underway: skills-based hiring. Forget the old "Where's your degree?" mindset — this is about what you can do, not where you’ve been. Buckle up, because we’re about to go on a journey through the past, present, and future of hiring, and it's gonna be a wild ride. This is one of the longest pieces I have written (yet). Phew!

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Key Idea: Skills based Hiring

The Hiring Evolution: From Degrees to Skills

Hiring based on degrees is like using a flip phone in the age of smartphones. It’s clunky, outdated, and honestly, just embarrassing at this point. The world has moved on, and companies are finally catching up. More and more, they’re prioritizing skills over credentials — focusing on what candidates can actually do rather than the fancy pieces of paper they hold.

It’s a shift that’s transforming workplaces, making hiring more effective, more inclusive, and honestly, a lot more common sense. This isn’t just about plugging a gap in the team; it’s about finding people who can bring real, applicable skills to the table. Often, this means tossing out rigid four-year degree requirements and opening the door to folks who've learned through bootcamps, self-study, or the old school of hard knocks.

Degrees are great for showing that you can stick with something, but let’s be honest — do they really tell us if you can solve a crisis at 3 AM, or creatively untangle a mess of a codebase? Not so much.

Skills-based hiring flips the script. It’s about asking, "What have you built? What can you contribute?" rather than "What did you major in ten years ago?". And let's face it, in a world where technology is driving a constant need for new skills — especially with the rise of AI — being able to adapt is everything. According to Pearson Business School, only 13% of college graduates have the skills needed to start a job right away. No wonder employers are questioning the value of traditional degrees.

The Old Model vs. The New Reality

The old model of hiring based on degrees misses out on a ton of brilliant talent — people who have honed exactly what the job needs but don’t have that golden piece of paper. Over 70% of employers now say they value skills over degrees. That’s a massive shift, and it makes sense: skills can be learned faster, more affordably, and way more effectively than spending four years in a lecture hall.

Now, don’t get me wrong, there are still professions where a formal education is a must — no one wants a self-taught brain surgeon, after all. But for fields like technology, where the landscape changes faster than you can refresh your Instagram feed, skills-based hiring makes perfect sense.

Employers are realizing that coding, data analysis, UX design, and many other in-demand skills can be self-taught, learned at a trade school, or mastered through real-world experience. Plus, diversifying the workforce has become crucial, and skills-based hiring helps bring in those who might’ve been overlooked under the old model — especially younger folks, or those who didn’t have the privilege of a traditional path.

Look at companies like Google, IBM, and Tesla — they’re ditching degree requirements in favor of assessing real capabilities. Apprenticeships, coding bootcamps, and focused skill-development programs are becoming the norm, and for good reason — they get people job-ready fast. Practical, hands-on experience always beats out theory.

In fact, a shift from credential-based to skills-based hiring could be the key to filling technical roles amid talent shortages. In the US alone, there are 70 million people — called “STARs” — who don’t have bachelor’s degrees but are “Skilled Through Alternative Routes.” The US is leading the charge in this trend, with companies like Dell, Accenture, IBM, and Amazon embracing skills-first hiring.

Why Skills-Based Hiring is a Win-Win

Here’s why this approach is winning hearts: it’s a game-changer for employers. Skills-based hiring means finding people who can hit the ground running. There’s no fluff, no wasted time onboarding someone who still needs to learn the basics. It’s also great for boosting diversity — opening doors for people who may not fit the cookie-cutter mold but have exactly what it takes to excel. Research even found that skills-based hires are more loyal to their employers, with a 9% longer tenure compared to traditional hires. It’s like finding that perfect puzzle piece you didn’t even know you were missing.

For employees, it’s a breath of fresh air. You don’t need to chase an expensive degree to prove your worth — it’s all about what you know and what you can do. It makes the job market more accessible and levels the playing field. Workers who gained their skills through experience — whether through online learning, freelancing, or just good old-fashioned side-hustles — are becoming a powerful force in the labor market. And this aligns perfectly with workers' expectations today—they want mobility, they want flexibility, and they want career progression based on competence, not credentials.

Stats don’t lie:

• 90% of employers reduce mis-hires with skills-based hiring

• 91% see better retention rates

• 82% of 25-34 year-olds prefer this approach

• 90% associate it with landing dream jobs

• 90% of employers see improved diversity

The Playbook for Adapting to Skills-Based Hiring

So, you’re convinced. Now what? Here’s the playbook for adapting to skills-based hiring:

• Skills Assessments: Forget the old “Tell me about yourself” routine. Instead, use coding challenges, mock presentations, or project work. Generative AI can also help hiring managers write better job descriptions, making sure the skills you need are clearly defined.

• Portfolios: Look at what candidates have actually done, not just where they’ve been. A portfolio can say more about someone’s ability than a degree ever could. Maybe they don’t have a computer science degree, but they’ve got killer Python skills? Perfect.

• Skill Stacking: This is where it gets cool. Look for candidates who combine skills in unique ways — like a marketer who can code, or a designer who’s a data whiz. These hybrids are the ones who stand out. Flexibility is key too: consider candidates who might start in customer service and later move into marketing, using their interpersonal skills to understand and shape customer needs. It’s not about rigid job titles, it’s about building with skills.

Sure, there are challenges like figuring out how to verify skills and retraining recruiters to look beyond degrees — but tech is stepping up to help. Platforms are popping up to certify skills, and AI is making assessments smarter and more reliable.

Take IBM, for instance — they’re recognizing the skills that people are building as part of their performance reviews and rewarding employees for investing in the skills needed for the future. And generative AI isn’t just helping companies — it can also guide individuals in understanding what skills they need to get to where they want to be.

The Future of Hiring

Skills-based hiring isn’t just a trend—it’s the way forward if we want a competitive, adaptable, and truly capable workforce. Degrees are nice, sure, but skills are what really matter. And it’s not just about hiring—once people are on board, their growth, promotions, and career moves should all be skills-driven. It’s the only way to fully unlock potential and keep everyone growing. Let’s build the future of work, one skill at a time.

P.S. If you've made it this far, I've got something special to share: I'm building a brand new recruitment solution tailored for the #FutureOfWork — ground-up innovation designed for what’s next. Stay tuned, and you'll be among the first to know more. 🙂

Thank you for reading! See you next Thursday.

Best,
Kartik

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