Ask any HR leader about skills-based hiring, and chances are they’ll agree – it makes a lot of sense. Prioritizing candidates based on their abilities rather than traditional credentials expands talent pools, fosters more diverse and innovative teams and accelerates the hiring process.
So why isn’t it the norm?
Many businesses struggle to implement skills-first hiring, despite its popularity. Job descriptions still list degree requirements that have little relevance to the role. Hiring managers continue to rely on familiar job titles rather than assessing actual capabilities. And with HR teams already stretched thin, adopting new tools and frameworks can feel like an overwhelming challenge.
Companies don’t want to change; they just need the right approach to get going. That’s where solutions like the Radancy Talent Acquisition Cloud come in, helping organizations simplify their hiring process with AI-powered automation and data-driven insights.
The Skills-First Shift Is Now Underway. The bright side? Skills-based hiring is already being implemented. In fact, the number of employers adopting this approach has surged from 57% in 2022 to 81% in 2024. Leading organizations have removed degree requirements for many roles, prioritizing real capabilities over traditional credentials.
The persistent talent shortage is a significant factor in this shift. Companies can no longer afford to overlook qualified candidates simply because they lack a specific degree, as there are critical workforce gaps in sectors like logistics, healthcare, and technology. But adopting skills-based hiring isn’t as simple as removing degree requirements from job descriptions. It requires organizations to rethink how they define roles, evaluate talent and gain leadership buy-in. And for many HR teams, navigating that transition is the real challenge.
The Three Biggest Challenges (And How to Solve Them)
1. Getting Managers of Employment on Board
Many hiring managers are still hesitant, despite HR teams’ embrace of skills-first hiring. Why? because degrees and previous job titles have long served as the default filters, providing candidates with quick and familiar ways to be evaluated. However, quick is not always effective. Skills-based hiring is a promising concept that delivers results. Organizations that prioritize skills over traditional credentials gain access to a wider, more diverse talent pool and see stronger business outcomes. The data backs it up:
A broader and more diverse pipeline: Eliminating degree requirements opens opportunities and broadens the talent pool. Better hiring outcomes: 90% of companies reported making better hires when focusing on candidates’ skills rather than degrees, with 94% observing that skills-based hires outperform those selected based on traditional credentials.
High adoption rate: 65% of surveyed employers now use skills-based hiring for entry-level roles, reflecting a broader industry shift.
The Fix: Lead with Data
Organizations require a data-driven strategy in order to move hiring managers beyond conventional filters: Define the right skills: Align with hiring teams to identify the core competencies needed for each role.
Make smarter hiring decisions by incorporating skills-based assessments in addition to resumes to validate talent. Make use of AI and automation: Regardless of background, technology can assist in surfacing candidates who possess the necessary skills. With the Radancy Talent Acquisition Cloud, employers can gain deeper insights into candidate potential, enabling smarter and more efficient hiring decisions.
Educate and empower hiring managers: Equip teams with the insights they need to confidently hire for skills, not just credentials.
When hiring managers see the impact, they’ll be on board. And that’s when the real transformation begins.
2. Measuring Skills Accurately
How can you be sure a candidate has the right skills? A resume might list “data analysis” or “project management,” but without a way to validate those abilities, hiring managers are still making educated guesses.
The Fix: Go Beyond the Resume
A clearer, more objective view of a candidate’s actual capabilities is provided by real-world work simulations, structured interviews, and skills-based training programs. 75% of surveyed employers claim that eliminating degree requirements for job applicants has benefited their business. By adopting this approach, employers can make more confident and equitable hiring decisions.
3. Keeping Job Descriptions Current
Long lists of requirements that do not actually determine success in the position are common in job descriptions.
The Fix: Focus on Real Skills
Examine the essential requirements for the position with seriousness. Try saying, “Bachelor’s degree or equivalent experience in [specific skill]” rather than “Bachelor’s degree required.” Competencies should take precedence over arbitrary experience requirements: “Proven ability to manage multiple projects under tight deadlines” is much more effective than “5+ years in a similar role.” By shifting the focus from credentials to capabilities, companies can attract stronger, more diverse talent – and fill roles faster.
4. Start Small, Scale Fast
Shifting to skills-based hiring doesn’t mean overhauling everything overnight. Choose a department or role, implement skills-based hiring, and monitor the results with a pilot program. You can measure key metrics like time to fill, new hire performance, and improvements in retention with Radancy’s data-driven approach, ensuring a smooth transition to a more agile hiring strategy. The Bottom Line
While change isn’t always easy, it’s necessary. Companies that stick with outmoded hiring strategies will continue to face talent shortages, whereas those that prioritize skills will create teams that are more resilient and adaptable. The answer to your HR leader’s question about where to start is straightforward: start somewhere. The sooner you do, the sooner you’ll see the impact.
Looking to optimize your hiring strategy? The Radancy Talent Acquisition Cloud helps you attract and engage the right talent with AI-powered automation and data-driven insights. We give you the tools to hire smarter and faster, whether you want to increase your talent pool or make the hiring process easier. Request a demonstration today to see how it works.
