{"id":15537,"date":"2024-10-30T15:59:45","date_gmt":"2024-10-30T15:59:45","guid":{"rendered":"http:\/\/blog.toggl.com\/hire-for-skills-not-resumes\/"},"modified":"2026-01-23T12:12:42","modified_gmt":"2026-01-23T12:12:42","slug":"skills-based-hiring","status":"publish","type":"post","link":"https:\/\/toggl.com\/blog\/skills-based-hiring","title":{"rendered":"How Skills-Based Hiring Will Transform Talent Acquisition in 2025"},"content":{"rendered":"\n<p>Today&#8217;s labor market is strikingly different from a decade ago. <\/p>\n\n\n\n<p>Fewer candidates have the \u2018traditional\u2019 background of a four-year degree; instead, we have a growing number of young people who choose online education in favor of college, more senior staff opting for portfolio careers (with several jobs in not-always-related fields), and plenty actively upskilling in a new area.<\/p>\n\n\n\n<p>All these professionals hold valuable competencies, but you might not spot them in a sea of resumes.&nbsp;So, to ensure recruiters are identifying the right people to fill their vacant positions, skills-based hiring is now a top talent acquisition tactic. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">TL; DR\u2014Key Takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/hire\/skills-based-hiring\" target=\"_blank\"  rel=\"noopener\" title=\"Skills-based hiring\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"2361\">Skills-based hiring<\/a> shifts hiring managers\u2019 focus from candidates\u2019 self-reported credentials, such as degrees, experience, or job titles, to<strong> verified real-world competencies<\/strong>.<\/li>\n\n\n\n<li>Educational institutions struggle to align curriculums with real <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/blog\/job-requirements\" target=\"_blank\" rel=\"noopener\" title=\"job requirements\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"1443\">job requirements<\/a>. Both employers and graduates feel degrees no longer provide the competencies needed in the modern workforce. <strong>Alternative educational paths<\/strong>, such as online programs and professional training, are gaining traction.&nbsp;&nbsp;<\/li>\n\n\n\n<li>Employers <strong>eliminate skills mismatches, address talent shortages, and future-proof organizational growth<\/strong> by focusing on candidates\u2019 actual skills rather than how they acquired them.<\/li>\n\n\n\n<li>Companies with skills-based hiring practices report <strong>benefits<\/strong> like higher caliber candidates, lower cost-per-hire, improved candidate experience, and overall team diversity.<\/li>\n\n\n\n<li>To succeed with skills-based hiring, you need to understand the <strong>professional competencies<em> and <\/em>personal qualities<\/strong> needed for the open role.<\/li>\n\n\n\n<li>Based on our experience, we recommend <strong>using skills assessments as a pre-screening method<\/strong> for roles with many applicants and as a reliable measure of candidate competencies for shortlisting.<\/li>\n\n\n\n<li>Combine <strong>different types of assessments<\/strong> and interview formats to screen for qualities your organization needs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is skills-based hiring, and how is it revolutionizing the hiring process?<\/h2>\n\n\n\n<p>Skills-based hiring is a talent acquisition approach that systematically evaluates candidates\u2019 real-world abilities and competencies rather than using college degrees or other educational credentials to determine their job fit.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Put simply, skills-based hiring focuses on what the candidate can do, not just their job titles or educational background. That\u2019s a power move because it allows you to attract a wider talent pool, gain greater confidence in candidate assessments, and increase your time-to-hire.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Hiring for skills is 5x more predictive of job performance than hiring for education and more than 2x more predictive than hiring for work experience.<\/p>\n<cite><a href=\"https:\/\/www.mckinsey.com\/capabilities\/people-and-organizational-performance\/our-insights\/taking-a-skills-based-approach-to-building-the-future-workforce\" target=\"_blank\" rel=\"noreferrer noopener\">McKinsey &amp; Co<\/a><\/cite><\/blockquote>\n\n\n\n<figure class=\"wp-block-table aligncenter\"><table><thead><tr><th>Criteria<\/th><th>Skills-based hiring<\/th><th>Traditional hiring<\/th><\/tr><\/thead><tbody><tr><td>Focus<\/td><td>Emphasizes skills and competencies<\/td><td>Prioritizes education and work experience<\/td><\/tr><tr><td>How talent is evaluated<\/td><td>Skill assessments, practical tests, and performance-based evaluations<\/td><td>Resumes, cover letters, and interviews<\/td><\/tr><tr><td>Hiring bias<\/td><td>Reduces <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/blog\/unconscious-bias\" target=\"_blank\" rel=\"noopener\" title=\"unconscious bias\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"1448\">unconscious bias<\/a> by focusing on skills rather than background<\/td><td>Prone to biases based on education, work history, and personal factors<\/td><\/tr><tr><td>Diversity &amp; inclusion<\/td><td>Increases <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/blog\/diversity-inclusion-in-recruitment\" title=\"workforce diversity\" data-wpil-keyword-link=\"linked\">workforce diversity<\/a> by considering a wider range of candidates<\/td><td>Potentially faster due to a more streamlined evaluation process<\/td><\/tr><tr><td>Candidate pool<\/td><td>May limit diversity due to the focus on traditional qualifications<\/td><td>Smaller pool due to focus on specific qualifications and experience<\/td><\/tr><tr><td>Speed of hiring<\/td><td>Potentially faster due to more streamlined evaluation process<\/td><td>May be slower due to extensive background checks and evaluation of qualifications<\/td><\/tr><tr><td>On-the-job performance<\/td><td>Higher correlation with job performance as hiring is based on skills needed for the role<\/td><td>Lower correlation with job performance due to reliance on formal credentials<\/td><\/tr><tr><td>Employee retention<\/td><td>Higher retention as employees are better matched to job requirements<\/td><td>Lower retention due to potential <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/blog\/skills-mismatch\" title=\"skills mismatch\" data-wpil-keyword-link=\"linked\">skills mismatch<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Education skepticism, the driving force behind skills-based hiring<\/h2>\n\n\n\n<p>Is a college degree worth it? Both hiring managers and job seekers have their doubts.&nbsp;<\/p>\n\n\n\n<p>There is a growing disconnect between what curriculums teach and what employers require. <a target=\"_blank\" href=\"https:\/\/www.newsweek.com\/college-not-worth-it-companies-say-study-1846780\" rel=\"noreferrer noopener\"><u>90% of employers<\/u><\/a> surveyed by Newsweek don\u2019t believe higher educational institutions produce graduate students with <em>\u201crelevant skills that today&#8217;s business community needs.&#8221; <\/em>&nbsp;<\/p>\n\n\n\n<p>This is a global problem. For example, Germany lacks 310k professionals in science, technology, engineering, and mathematics (STEM). According to a <a href=\"https:\/\/www.iwkoeln.de\/studien\/christina-anger-julia-betz-axel-pluennecke-mint-bildung-staerken-potenziale-von-frauen-aelteren-und-zuwandernden-heben.html\" target=\"_blank\" rel=\"noreferrer noopener\"><u>2023 report by The German Economic Institute<\/u><\/a>, the proportion of graduates in these areas is declining. <\/p>\n\n\n\n<p>In Belgium, the Netherlands, and France, <a href=\"https:\/\/www.euronews.com\/business\/2024\/04\/08\/eu-jobs-crisis-as-employers-say-applicants-dont-have-the-right-skills\" target=\"_blank\" rel=\"noreferrer noopener\"><u>over 60%<\/u><\/a> of employers struggle to find people with the right skills, although graduate rates haven\u2019t dropped sharply.&nbsp;Candidates also realize that college is no longer the \u2018golden ticket\u2019 to a successful career.&nbsp;<\/p>\n\n\n\n<p>Only half of American workers<strong> <\/strong>believe a college degree is necessary to get a well-paid job, <a href=\"https:\/\/www.pewresearch.org\/social-trends\/2024\/05\/23\/is-college-worth-it-2\/\" target=\"_blank\"><u>Pew Research<\/u><\/a> found. The prospect of acquiring crippling college debt is also a deterrent. Only 22% agree the cost of college is worth it if you need to take out a loan.&nbsp;<\/p>\n\n\n\n<p>In Europe and the UK, where higher education is more affordable, graduates also struggle to justify their educational decisions. In an <a href=\"https:\/\/www.theguardian.com\/money\/article\/2024\/aug\/29\/uk-graduates-struggle-job-market\" target=\"_blank\"><u>interview with The Guardian<\/u><\/a>, Noah, a 23-year-old graduate in modern history BA, found a new well-paid job because he taught himself to code during classes. That\u2019s hardly a unique story if you browse LinkedIn.&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Over 70 million U.S. adults are skilled through alternative routes and possess skill sets for more senior roles that they currently hold.<\/p>\n<cite><a href=\"https:\/\/opportunityatwork.org\/our-solutions\/stars-insights\/reach-stars-report\/\" target=\"_blank\">Opportunity at Work<\/a><\/cite><\/blockquote>\n\n\n\n<p>More and more workers complete online courses and training programs to sharpen their skills and get new jobs. <\/p>\n\n\n\n<p>The new cohort of upskilling startups<span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">, such as&nbsp;<a href=\"https:\/\/www.bloomtech.com\/\" target=\"_blank\" rel=\"noopener\"><u>BloomTech<\/u><\/a>&nbsp;(software engineering),&nbsp;<a href=\"https:\/\/brainstation.io\/\" target=\"_blank\" rel=\"noopener\"><u>BrainStation<\/u><\/a>&nbsp;(UX, cybersecurity, digital marketing), and&nbsp;<a href=\"https:\/\/www.chegg.com\/skills\/our-programs\/\" target=\"_blank\" rel=\"noopener\"><u>Chegg Skills<\/u><\/a> (various digital professions), is<\/span> deferring tuition until participants secure a job. <\/p>\n\n\n\n<p>Large corporations like <a href=\"https:\/\/www.aboutamazon.com\/news\/aws\/aws-free-ai-skills-training-courses\" target=\"_blank\" rel=\"noreferrer noopener\"><u>Amazon<\/u><\/a>, <a href=\"https:\/\/powerup.microsoft.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>Microsoft<\/u><\/a>, and <a href=\"https:\/\/grow.google\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>Google<\/u><\/a> have also launched free initiatives to prepare for the future of work.&nbsp;<\/p>\n\n\n\n<p>The rise in online learning opportunities is driving further reluctance among professionals to pay top dollar or enroll in rigid-schedule, outdated programs. At the same time, it eliminates the utility of a &#8220;college degree&#8221; as a reliable proxy measure of job seekers&#8217; qualifications \u2014 a reality that now exists among many employers. <\/p>\n\n\n\n<p>Indeed found only <a href=\"https:\/\/www.hiringlab.org\/2024\/02\/27\/educational-requirements-job-postings\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>18%<\/u><\/a> of job postings in the US still include degree requirements. In general, formal education requirements have declined in 87% of occupational sectors.&nbsp;<\/p>\n\n\n        <div class=\"mb-8\">\n            <span class=\"block text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">Further Reading:<\/span>\n            <div class=\"border-t-[3px] border-b border-yellow-100 py-4 pb-2 lg:grid lg:gap-8 lg:grid-cols-2\">\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/most-in-demand-skills\" title=\"The 25+ Most In-Demand Skills in 2025 &amp; Beyond\" aria-label=\"The 25+ Most In-Demand Skills in 2025 &amp; Beyond\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/07\/Most-In-Demand-Skills-in-2023-Beyond-112x68.png\" alt=\"The 25+ Most In-Demand Skills in 2025 &amp; Beyond\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">The 25+ Most In-Demand Skills in 2025 &amp; Beyond<\/span>\n                        <\/a>\n                    <\/div>\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/meta-skills\" title=\"6 Meta Skills You&#8217;ll Need for Your Career in 2026\" aria-label=\"6 Meta Skills You&#8217;ll Need for Your Career in 2026\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/03\/Meta-skills-112x67.png\" alt=\"6 Meta Skills You&#8217;ll Need for Your Career in 2026\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">6 Meta Skills You&#8217;ll Need for Your Career in 2026<\/span>\n                        <\/a>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    \n\n\n<h2 class=\"wp-block-heading\">Why so many companies are taking a skills-based hiring approach<\/h2>\n\n\n\n<p>Traditional hiring emphasizes resume screening for degree(s), titles, and years of experience \u2014 factors that don&#8217;t always indicate strong <em>competencies.<\/em> <\/p>\n\n\n\n<p>Instead, skills-based hiring has emerged as an optimal approach to verifying candidates&#8217; competencies, soft skills, and real-world abilities acquired through a portfolio of work experiences and educational pursuits.&nbsp;Crucially, all of these can be verified through <u>pre-employment testing<\/u>.<\/p>\n\n\n\n<p>Last year, almost <a href=\"https:\/\/www.shrm.org\/topics-tools\/news\/all-things-work\/skills-based-hiring-new-workplace-trend\" target=\"_blank\"><u>three-quarters<\/u><\/a> of companies used skills-based hiring to close the skills gaps, address talent shortages, and pursue new business opportunities.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Skills gaps<\/h3>\n\n\n\n<p>In the last 12 months, <a href=\"https:\/\/www.shrm.org\/content\/dam\/en\/shrm\/research\/2024-talent-trends-research-overall-findings.pdf\" target=\"_blank\"><u>1 in 4 organizations<\/u><\/a> hired full-time roles that required new skills. Three-quarters of human resources professionals said hiring for these roles was somewhat (62%) or very difficult (14%).&nbsp;<\/p>\n\n\n\n<p>Many roles now require sharp technical skills and niche competencies that didn\u2019t exist five to ten years ago\u2014for example, AI prompt engineering, TikTok marketing, or even knowledge of the latest business analytics or project management tools.&nbsp;<\/p>\n\n\n\n<p>The evolution of competencies is also accelerating. Entry-level jobs require fewer data entry skills and more analytical or creative capabilities. New professions are emerging in response to wider economic shifts and advances in technology adoption.&nbsp;<\/p>\n\n\n        <div class=\"mb-8 top-tip\">\n            \n                            <span class=\"flex items-center text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">\n                    <img decoding=\"async\" class=\"!w-6 !h-6 !object-contain mr-2\" src=\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\" alt=\"Top tips to enlarge those brains\" aria-label=\"Top tips to enlarge those brains\" width=\"24\" height=\"24\" loading=\"lazy\">    \n                    <span>Top tip:<\/span>\n                <\/span>\n            \n            <div class=\"bg-yellow-30 border-t-[3px] border-yellow-100 px-6 pt-6 pb-2\"><p>Skills-based hiring encourages hiring managers to match <a href=\"https:\/\/toggl.com\/blog\/job-requirements\" target=\"_blank\" rel=\"noreferrer noopener\"><u>job requirements<\/u><\/a> with skills rather than other credentials. Then, they screen applicants using proven methods for skills assessments, such as pre-employment tests, homework assignments, case studies, and structured interviews.<\/p>\n<\/div>\n        <\/div>\n    \n\n\n<h3 class=\"wp-block-heading\">Talent shortages<\/h3>\n\n\n\n<p>By 2030, <a href=\"https:\/\/www.kornferry.com\/insights\/this-week-in-leadership\/talent-crunch-future-of-work\" target=\"_blank\"><u>85 million<\/u><\/a> open positions could remain unfilled due to limited talent supply. Technology, healthcare, and manufacturing face the tightest squeeze. <\/p>\n\n\n\n<p>However, European hiring managers also struggle to hire technicians, customer care experts, and administrative staff. On the other side of the world, Australian leaders face a shortage of qualified teachers, electricians, and sales and marketing managers.&nbsp;<\/p>\n\n\n\n<p>Organizations often self-aggravate the problem by severely limiting the talent pool with unrealistic candidate requirements, below-average worker compensation, or poor workplace culture. On the other hand, companies that recently eliminated college degrees from job descriptions and started using more inclusive language are seeing a greater influx of candidates, even for competitive roles.&nbsp;<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.hbs.edu\/managing-the-future-of-work\/Documents\/research\/emerging_degree_reset_020922.pdf\" target=\"_blank\"><u>Burning Glass Institute report<\/u><\/a> also says that some 15.7 million people remain outside of the candidate pools because 37% of middle-skilled jobs didn\u2019t remove the degree requirement. This, however, is changing.&nbsp;<\/p>\n\n\n        <div class=\"mb-8 top-tip\">\n            \n                            <span class=\"flex items-center text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">\n                    <img decoding=\"async\" class=\"!w-6 !h-6 !object-contain mr-2\" src=\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\" alt=\"Top tips to enlarge those brains\" aria-label=\"Top tips to enlarge those brains\" width=\"24\" height=\"24\" loading=\"lazy\">    \n                    <span>Top tip:<\/span>\n                <\/span>\n            \n            <div class=\"bg-yellow-30 border-t-[3px] border-yellow-100 px-6 pt-6 pb-2\"><p>Companies like Google, IBM, Delta Airlines, Bank of America, Walmart, and EY, among others, have ditched degree requirements for many open positions. This has led to an increased number of applicants for open roles and improved quality of hire too.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Why? The likelihood of successful hires is <a href=\"https:\/\/economicgraph.linkedin.com\/content\/dam\/me\/economicgraph\/en-us\/PDF\/linkedin-skillset-report.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><u>60% higher<\/u><\/a> for employers using skills-based methods.<\/p>\n<\/div>\n        <\/div>\n    \n\n\n<h3 class=\"wp-block-heading\">Opportunity gaps<\/h3>\n\n\n\n<p><u>Lack of talent<\/u> and <a href=\"https:\/\/toggl.com\/blog\/skills-mismatch\"><u>skills mismatches<\/u><\/a> hinder your business growth. Limited workforce capacity and skill sets are among the <a href=\"https:\/\/www.mckinsey.com\/capabilities\/mckinsey-digital\/our-insights\/digital-transformations-the-five-talent-factors-that-matter-most\" target=\"_blank\"><u>top barriers<\/u><\/a> to digital transformations. <\/p>\n\n\n\n<p>Short-staffed teams struggle to keep the core business going and have no proper \u2018headspace\u2019 for innovative thinking. At the same time, a lack of skills delays progress on ambitious initiatives and further aggravates the divide between leaders and laggers.<\/p>\n\n\n\n<p>Companies that switch to skills-based hiring reduce both <span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">the time to hire and the odds of mishiring. For example,&nbsp;<a href=\"https:\/\/proxify.io\/\" target=\"_blank\" rel=\"noopener\"><u>Proxify<\/u><\/a>, a tech recruitment firm, shortened its time to hire to just&nbsp;<a href=\"https:\/\/toggl.com\/hire\/customer-story\/proxify-automates-talent-screening-for-developer-roles\" target=\"_blank\" rel=\"noopener\"><u>12.5 days<\/u><\/a>&nbsp;with skills-based hiring\u2014<\/span>a critical factor for a company receiving over 3,000 job applications every month.&nbsp; <\/p>\n\n\n\n<p>Creative agency <a href=\"https:\/\/riotlysocialmedia.com\/\" target=\"_blank\"><u>Riotly Social<\/u><\/a>, in turn, filled their talent pool with <a href=\"https:\/\/toggl.com\/hire\/customer-story\/riotly-social-attracts-10x-more-candidates\"><u>37 highly qualified potential hires in three weeks<\/u><\/a>, reducing the hassle of constantly restarting the hiring cycles.&nbsp;<\/p>\n\n\n\n<p>Faster hiring times mean you can act faster on new business opportunities to stay competitive and confidently scale.&nbsp;<\/p>\n\n\n        <div class=\"mb-8\">\n            <span class=\"block text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">Further Reading:<\/span>\n            <div class=\"border-t-[3px] border-b border-yellow-100 py-4 pb-2 lg:grid lg:gap-8 lg:grid-cols-2\">\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/skills-assessment-tests\" title=\"Skills Assessment Test: Definition, Benefits, Process &amp; Examples\" aria-label=\"Skills Assessment Test: Definition, Benefits, Process &amp; Examples\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2022\/03\/Skills-Assessment-Test_-Definition-Benefits-Process-Examples-112x68.png\" alt=\"Skills Assessment Test: Definition, Benefits, Process &amp; Examples\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">Skills Assessment Test: Definition, Benefits, Process &amp; Examples<\/span>\n                        <\/a>\n                    <\/div>\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"\" title=\"\" aria-label=\"\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"\" alt=\"\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\"><\/span>\n                        <\/a>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    \n\n\n<h2 class=\"wp-block-heading\">The benefits of skills-based hiring<\/h2>\n\n\n\n<p>By aligning talent acquisition efforts with actual job requirements, companies get a compendium of benefits.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Higher quality of new hires<\/h3>\n\n\n\n<p>Less of a focus on college degrees and more interest in skills means successful candidates already know the ropes. As a result, <a target=\"_blank\" href=\"https:\/\/www.shrm.org\/content\/dam\/en\/shrm\/research\/2024-talent-trends-research-overall-findings.pdf\" rel=\"noreferrer noopener\"><u>78% of companies<\/u><\/a> using pre-employment assessments have improved the quality of their hires.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Such hires are quicker to become productive in the new role and are also <a href=\"https:\/\/www.majorplayers.co.uk\/blog\/2024\/02\/unlocking-potential-understanding-the-power-of-skills-based-hiring?source=google.com\" target=\"_blank\"><u>2.5x more likely<\/u><\/a> to be high performers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lower cost-per-hire&nbsp;<\/h3>\n\n\n\n<p>The <a href=\"https:\/\/toggl.com\/blog\/cost-of-hiring-an-employee\"><u>average cost of hiring an employee<\/u><\/a> keeps climbing. Costs typically rise when recruiting teams spend more time (and money) on job postings, talent sourcing, and long interview processes.&nbsp;<\/p>\n\n\n\n<p>Skills-based hiring platforms reduce the teams\u2019 workload with data-backed <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/hire\/candidate-screening\" target=\"_blank\" rel=\"noopener\" title=\"candidate screening\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"1444\">candidate screening<\/a> (based on test scores), automated candidate feedback sharing, and streamlined collaboration processes between different hiring managers. <\/p>\n\n\n\n<p>Faster, more predictable hiring leads drive down talent acquisition costs.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lower odds of mis-hire&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/toggl.com\/hire\/pages\/pre-employment-testing\"><u>Pre-employment testing<\/u><\/a> brings data into your hiring process. Rather than comparing people with different titles, degrees, and backgrounds, you can stack them in terms of specific skills. With more objective data, you eliminate doubts <em>and <\/em>(un)conscious bias.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stellar candidate experience&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/toggl.com\/blog\/candidate-experience\"><u>Candidate experience<\/u><\/a> dictates your ability to attract and engage the top talents. <\/p>\n\n\n\n<p>Slow recruiters often duplicate information requests, provide substandard candidate feedback, and struggle with interview scheduling\u2014all common repellers for experienced candidates who know their worth. <a href=\"https:\/\/www.roberthalf.com\/us\/en\/insights\/management-tips\/how-a-long-recruitment-process-can-hurt-you\" target=\"_blank\"><u>46% of candidates <\/u><\/a>will move on if they don\u2019t get a status update within 1-2 weeks after their interview.&nbsp;<\/p>\n\n\n\n<p>Skills-based hiring practices replace (often) redundant job application steps and interview rounds with a more interactive experience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Better employee retention&nbsp;<\/h3>\n\n\n\n<p>Statistically, skills-based hires are 9% more likely to stay with the same company. The average skills-based candidate will stay with the company for 4.7 years, compared to 4.3 for traditional hires. This is most likely because they feel placed in a role where they can give their all and reach their best potential.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Improved diversity, equity, and inclusion (DEI) metrics&nbsp;<\/h3>\n\n\n\n<p>By removing unnecessary barriers, you can access a much broader and more diverse <u>talent pool<\/u>. According to LinkedIn, skills-based hiring can increase the proportion of Gen Z workers in the candidate pool by 10x and Millenial by 9x.&nbsp;<\/p>\n\n\n\n<p>By eliminating requirements associated with a certain &#8216;pedigree,&#8217; you open the doors for more workers from traditionally underrepresented groups. Not only do you get a better roster of applicants, but you also contribute to a more equitable job market and more diverse workplace cultures.&nbsp;<\/p>\n\n\n        <div class=\"mb-8\">\n            <span class=\"block text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">Further Reading:<\/span>\n            <div class=\"border-t-[3px] border-b border-yellow-100 py-4 pb-2 lg:grid lg:gap-8 lg:grid-cols-2\">\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/dei-tips\" title=\"31 DEI Tips: How to Promote Inclusivity in the Workplace\" aria-label=\"31 DEI Tips: How to Promote Inclusivity in the Workplace\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/03\/31-DEI-Tips-Best-Practices-for-an-Inclusive-Workplace-112x68.png\" alt=\"31 DEI Tips: How to Promote Inclusivity in the Workplace\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">31 DEI Tips: How to Promote Inclusivity in the Workplace<\/span>\n                        <\/a>\n                    <\/div>\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"\" title=\"\" aria-label=\"\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"\" alt=\"\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\"><\/span>\n                        <\/a>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    \n\n\n<h2 class=\"wp-block-heading\">Best practices for implementing skills assessments in your hiring process<\/h2>\n\n\n\n<p>Here&#8217;s how to best integrate skills assessments into the hiring process.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Know where to place skills assessments<\/h3>\n\n\n\n<p>Skills assessments come in many forms and can be used first as a <strong>quality filter <\/strong>for roles that attract many applicants and then as a <strong>competency filter <\/strong>to shortlist candidates at later stages.&nbsp;Here&#8217;s our recommended approach:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"755\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-1024x755.png\" alt=\"Skills assessments in the recruitment process\" class=\"wp-image-53255\" srcset=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-1024x755.png 1024w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-300x221.png 300w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-768x566.png 768w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-548x404.png 548w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-1031x760.png 1031w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-1093x806.png 1093w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process-112x83.png 112w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/10\/Skills-assessments-in-the-recruitment-process.png 1440w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>As a quality filter, core competency tests for role-related skills (e.g., customer success, network security, or general sales) allow you to eliminate people who lack the chops and prioritize those with proven abilities. For example, you can easily pre-screen over 200 applicants in one afternoon (<a href=\"https:\/\/toggl.com\/hire\/customer-story\/mooncascade-makes-candidate-screening-faster\"><u>real story<\/u><\/a>!) to progress only the best potential hires.&nbsp;<\/p>\n\n\n\n<p>We also recommend placing skills tasks after the initial screening with a talent acquisition specialist. This way, you retain the human touch and can also explore someone&#8217;s job role a bit deeper with a <a class=\"wpil_keyword_link\" href=\"https:\/\/toggl.com\/hire\/homework-assignments\" target=\"_blank\" rel=\"noopener\" title=\"homework assignment\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"1442\">homework assignment<\/a> or a soft skills test. <\/p>\n\n\n        <div class=\"mb-8 top-tip\">\n            \n                            <span class=\"flex items-center text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">\n                    <img decoding=\"async\" class=\"!w-6 !h-6 !object-contain mr-2\" src=\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\" alt=\"Top tips to enlarge those brains\" aria-label=\"Top tips to enlarge those brains\" width=\"24\" height=\"24\" loading=\"lazy\">    \n                    <span>Top tip:<\/span>\n                <\/span>\n            \n            <div class=\"bg-yellow-30 border-t-[3px] border-yellow-100 px-6 pt-6 pb-2\"><p>Here&#8217;s what that might look like in a real hiring scenario: Gauge the candidate&#8217;s fit for <a href=\"https:\/\/toggl.com\/hire\/test-library\/working-remotely-skills-test\" target=\"_blank\" rel=\"noreferrer noopener\"><u>remote work<\/u><\/a> or <a href=\"https:\/\/toggl.com\/hire\/test-library\/leadership-management-skills-test\" target=\"_blank\" rel=\"noreferrer noopener\"><u>management positions<\/u><\/a> via quick assessments before moving to more in-depth <a href=\"https:\/\/toggl.com\/blog\/behavioral-interview-questions\" target=\"_blank\" rel=\"noreferrer noopener\"><u>behavioral interviews<\/u><\/a>.<\/p>\n<\/div>\n        <\/div>\n    \n\n\n<h3 class=\"wp-block-heading\">Challenge your perception of the ideal hire<\/h3>\n\n\n\n<p>Skills-based hiring doesn&#8217;t force you to forget about qualifications entirely. <\/p>\n\n\n\n<p>Rather, it challenges you to consider what matters most for the role. Do you need a Harvard graduate for an entry-level admin position? Or a sales manager with 10+ years of experience in big pharma to sell a wellness wearable device?&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.vox.com\/policy\/23628627\/degree-inflation-college-bacheors-stars-labor-worker-paper-ceiling\" target=\"_blank\"><u>Degree inflation<\/u><\/a> (aka, educational requirements for occupations that don\u2019t require them) has resulted in companies with smaller talent pools full of overqualified candidates (and rather unsatisfied staff) in many positions.&nbsp;<\/p>\n\n\n\n<p>Excessive focus on credentials creates a dynamic in which candidates are forced to over-embellish their resumes to get their foot in the door while hiring managers pass on skilled staff who don&#8217;t fit in the \u201cbox.\u201d&nbsp;<\/p>\n\n\n\n<p><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">Ask questions like,<\/span> &#8220;What are the &#8216;success traits&#8217; of an ideal hire?&#8221; rather than &#8220;What school should they have attended?&#8221;<\/p>\n\n\n\n<p>Likewise, use seniority levels rather than peg a precise &#8216;minimal years of experience&#8217; number to an open role. Someone with five years in a teaching position and a year in project management can be as great in managing expectations and negotiating as a tenured professional.\u00a0<\/p>\n\n\n        <div class=\"mb-8 top-tip\">\n            \n                            <span class=\"flex items-center text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">\n                    <img decoding=\"async\" class=\"!w-6 !h-6 !object-contain mr-2\" src=\"https:\/\/toggl.com\/blog\/wp-content\/themes\/toggl-mjtweaver\/img\/brain.png\" alt=\"Top tips to enlarge those brains\" aria-label=\"Top tips to enlarge those brains\" width=\"24\" height=\"24\" loading=\"lazy\">    \n                    <span>Top tip:<\/span>\n                <\/span>\n            \n            <div class=\"bg-yellow-30 border-t-[3px] border-yellow-100 px-6 pt-6 pb-2\"><p>Continuously challenge how you think about an ideal hire for your team. Keep a tight list of must-have skills and a broader list of nice-to-haves, which you use to qualify shortlisted candidates rather than eliminate potential job applicants.<\/p>\n<\/div>\n        <\/div>\n    \n\n\n<h3 class=\"wp-block-heading\">Understand which skills you need<\/h3>\n\n\n\n<p>Skills-based hiring isn\u2019t a silver bullet to good candidate placement. It\u2019s a tool that helps you objectively compare real-life candidates\u2019 skills and abilities. If you don\u2019t know which you need, you\u2019ll still end up with a poor fit.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Job titles and role requirements vary a lot from one company to another. A marketing manager from a small startup might handle everything from paid ads and social media marketing to external services provider management. One from a larger firm may have a more specialized skill set.&nbsp;<\/p>\n\n\n\n<p>Finding a good match begins with understanding what type of person you need. Conduct a <u>job task analysis<\/u> to map the required competencies, then design a test to measure these.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Complement skills tests with great interview practices<\/h3>\n\n\n\n<p>Skills assessments verify functional skills, leaving you with more \u2018face time\u2019 for assessing other candidates\u2019 strengths: their leadership potential, personality traits, and behavioral quirks that make or break a cultural fit.&nbsp;<\/p>\n\n\n\n<p>Oftentimes, you may want a hire who shares your corporate values or meshes well with the existing team dynamics. Or you\u2019re looking for someone with excellent communication skills to become that \u2018glue\u2019 in a slightly socially awkward team.&nbsp;<\/p>\n\n\n\n<p><u>Structured interviews<\/u> further assess whether the shortlisted applicant will match the vibe of your organization. Likewise, interviewing dispels any misunderstanding a candidate may have about the role. Almost <a href=\"https:\/\/www.hrdive.com\/news\/study-48-of-workers-have-left-a-job-because-it-didnt-meet-expectations\/551179\/\" target=\"_blank\"><u>half of workers<\/u><\/a> had quit a job because it didn\u2019t match their expectations.&nbsp;<\/p>\n\n\n        <div class=\"mb-8\">\n            <span class=\"block text-dark-purple-100 opacity-60 uppercase mb-2 text-sm font-bold\">Further Reading:<\/span>\n            <div class=\"border-t-[3px] border-b border-yellow-100 py-4 pb-2 lg:grid lg:gap-8 lg:grid-cols-2\">\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/ideal-candidate-profile\" title=\"5 Steps to Crafting Your Ideal Candidate Profile\" aria-label=\"5 Steps to Crafting Your Ideal Candidate Profile\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/06\/Crafting-Your-Ideal-Candidate-Profile-112x67.png\" alt=\"5 Steps to Crafting Your Ideal Candidate Profile\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">5 Steps to Crafting Your Ideal Candidate Profile<\/span>\n                        <\/a>\n                    <\/div>\n                                    <div class=\"mb-4 lg:mb-2\">\n                        <a class=\"flex items-center hover:italic hover:text-dark-purple-80\" href=\"https:\/\/toggl.com\/blog\/interview-guide\" title=\"How to Create an Interview Guide for Better Hiring\" aria-label=\"How to Create an Interview Guide for Better Hiring\">\n                            <img decoding=\"async\" loading=\"lazy\" class=\"rounded-full w-14 h-14 mr-4 object-cover\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2024\/03\/How-to-Create-an-Interview-Guide-for-Better-Hiring-112x68.png\" alt=\"How to Create an Interview Guide for Better Hiring\" width=\"56\" height=\"56\">\n                            <span class=\"font-semibold font-heading leading-snug\">How to Create an Interview Guide for Better Hiring<\/span>\n                        <\/a>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    \n\n\n<h2 class=\"wp-block-heading\">Skills vs. experience: Which really matters for job success?<\/h2>\n\n\n\n<p>Skills and work experience are connected at the hip, but one doesn&#8217;t necessarily indicate the other. Experienced professionals may lack up-to-date skill sets, while people with non-traditional career paths may have the qualifications but not the right resume title to back them.&nbsp;<\/p>\n\n\n\n<p>Hiring managers recognize this and emphasize <em>skills<\/em> more than <em>experience<\/em>. <a href=\"https:\/\/www.shrm.org\/content\/dam\/en\/shrm\/research\/2024-talent-trends-research-overall-findings.pdf\" target=\"_blank\"><u>Three-quarters<\/u><\/a> will shortlist people with high assessment scores but not enough years of experience, and 68% will focus on people who don\u2019t meet the minimum education requirements.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"781\" height=\"474\" src=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests.png\" alt=\"SHRM talent trends skills tests\" class=\"wp-image-55262\" style=\"width:840px;height:auto\" srcset=\"https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests.png 781w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests-300x182.png 300w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests-768x466.png 768w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests-666x404.png 666w, https:\/\/toggl.com\/blog\/wp-content\/uploads\/2023\/05\/SHRM-talent-trends-skills-tests-112x68.png 112w\" sizes=\"auto, (max-width: 781px) 100vw, 781px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.shrm.org\/content\/dam\/en\/shrm\/research\/2024-talent-trends-research-overall-findings.pdf\" target=\"_blank\"><u>SHRM 2024 Talent Trends Report<\/u><\/a>&nbsp;<\/figcaption><\/figure>\n<\/div>\n\n\n<p>The main question is: who do <em>you <\/em>want to see in the open role? A senior professional with strong chops (and respective salary expectations) or an ambitious upstart eager to prove themselves?&nbsp;<\/p>\n\n\n\n<p>Skills-based hiring can identify both types of candidates with greater predictability and in less time.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today&#8217;s labor market is strikingly different from a decade ago. Fewer candidates have the \u2018traditional\u2019 background of a four-year degree; instead, we have a growing&#8230;<\/p>\n","protected":false},"author":640,"featured_media":55268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[846],"tags":[],"class_list":["post-15537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-talent-acquisition"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Skills-Based Hiring is Replacing Traditional Recruitment<\/title>\n<meta name=\"description\" content=\"Is skills-based hiring the future of recruitment? Find out how (and why) companies are turning to skills assessments for better hires in 2025.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/toggl.com\/blog\/skills-based-hiring\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Skills-Based Hiring is Replacing Traditional Recruitment\" \/>\n<meta property=\"og:description\" content=\"Is skills-based hiring the future of recruitment? 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