By HR Brew Staff
less than 3 min read
Definition:
Skills-based hiring is the practice of evaluating candidates based on their capabilities and competencies, rather than education and experience.
What does skills-based hiring involve?
Skills-based hiring is a multi-faceted strategy that involves determining the hard and soft skills required to perform the positions within an organization, and revising their job descriptions so that they feature inclusive language that emphasizes skills over education and experience. In this way, the interview process is more structured: All candidates are prompted with the same set of behavioral questions, situational exercises, and skills assessments in an effort to evaluate their potential, and all hiring managers are required to rate said candidates according to a standardized scoring system.
What are the benefits of skills-based hiring?
Skills-based hiring can help HR professionals access a wider, more diverse talent pool by removing barriers to entry, such as a four-year college degree. Hiring based on skills can also reduce time-to-hire and talent shortages, and improve job alignment, which may result in higher rates of engagement and retention.
What are the challenges of skills-based hiring?
Skills-based hiring isn’t without its challenges. The process of determining the skills required to perform the positions that make up an organization, and developing the most effective methods of measuring those skills, often necessitates time and resources—investments that won’t make much of a difference if an organization does not first adopt a skills-first mindset. To that end, leadership buy-in is crucial.
Can you put skills-based hiring into context?
“Since making the switch to skills-based hiring, Udemy has boosted its internal mobility, filling 37% of its open jobs from within,” HR Brew reported in June 2025.
