Skip to content
English
Contact us
  • There are no suggestions because the search field is empty.

Are You Using Skills-Based Hiring or Degree-Based Hiring Skills-Based (Skills-First) Hiring?

What’s the Difference between Skills-Based and Degree-Based Hing?

  • Skills-Based Hiring (also called skills-first hiring) shifts the spotlight from resumes and degrees to real-world ability. Skills-Based Hiring focuses on applicants' specific abilities, competencies, and practical know-how, regardless of their education or formal job titles.
  • Degree Based Hiring evaluates applicants primarily on academic credentials, using degrees as a proxy for readiness and qualification.

Tips for Implementing Skills-Based Hiring

  • Update job descriptions to list must-have skills over degree requirements
  • Use skill assessments, sample tasks, or certifications in the application process
  • Train hiring managers to evaluate performance, not pedigree
  • Regularly review and adjust assessments to stay aligned with evolving role needs
  • Focus on continuous upskilling for both new hires and current employees

Comparison of Skills-Based and Degree-Based Hing

Benefits of Skills-Based Hiring

  • Larger Talent Pool - Opens access to self-taught applicants, career changers, and people from non-traditional backgrounds.
  • Faster Hiring Process - Skills assessments can replace resume screens, making it easier to shortlist top applicants quickly.
  • Improved Morale & Productivity - Teams made up of competent, confident employees tend to perform better and collaborate more effectively.
  • Higher Retention Rates - Applicants who are a strong fit for the role tend to stay longer, reducing turnover and hiring costs.
  • Stronger Workforce Diversity - Removing degree requirements can reduce bias and improve equity across gender, race, and socioeconomic status.

Benefits of Degree-Based Hiring

  • Credential Verification - Degrees ensure a baseline of knowledge and effort.
  • Standardization - Easier to compare applicants with similar academic backgrounds.
  • Professional Requirements - Necessary for roles that require certification, licensing, or deep theoretical knowledge.
  • Soft Skill Development - Many degree programs also teach transferable skills like teamwork, communication, and project management.

Challenges of Skills-Based Hiring

  • Not Suitable for All Roles - Some jobs (e.g., doctors, lawyers, engineers) require degrees or licenses by law or industry standard.
  • Setup Takes Time - Creating effective and fair skills assessments takes planning, testing, and sometimes technology investment.
  • Harder to Evaluate Soft Skills - Some traits like leadership or adaptability are less tangible and harder to measure via tests.
  • Potential for Bias in Assessment Design - Assessments must be structured to fairly evaluate all applicants, or they risk introducing new forms of bias.

Challenges of Degree-Based Hiring

  • Limited Applicant Pool - May exclude skilled individuals without formal education.
  • Outdated Curriculum - Degrees do not always reflect fast-changing industry demands.
  • Lack of Practical Experience - Academic knowledge does not always translate into hands-on ability.
  • Equity Concerns - Over-reliance on degrees can reinforce socioeconomic disparities.

An organization may utilize different methods for different positions. Each position should be examined to understand what the critical needs are and how the various methods align with helping fulfill those needs, as well as what is appropriate for your organization as a whole.