Firms Shifting to Skills-First Hiring

Skills-first hiring is on the rise, with 85% of companies globally using it in 2025, up from 73% in 2023. This approach focuses on a candidate's abilities and competencies rather than degrees or job titles. LinkedIn data indicates skills required for a position have shifted over 25% since 2015 and are expected to double by 2027. For consulting firms, skills-first can widen the talent pool, especially given talent shortages in key sectors. Companies like IBM, Google, and Unilever are already embracing skills-first recruitment. This shift allows firms to consider candidates with non-traditional backgrounds, including those who've gained expertise through bootcamps or apprenticeships. Challenges remain, including assessing skills effectively and integrating skills data into HR processes. Some hiring managers find it difficult to assess skills directly (40%), and job descriptions often lack clear skill requirements (30%). Leadership alignment and investment in skills-based assessment tools are crucial for successful implementation. Skills-first organizations are 63% more likely to achieve key business outcomes like innovation and financial performance. They also retain employees nearly twice as long. By 2030, it's predicted that 70% of the skills used in most jobs will have changed, making adaptability and continuous learning essential.