How to Move Towards Skills-Based Hiring and Why It Matters

Oliver Harris, Global Managing Director, Enterprise Solutions, PageGroup

What if your hiring process is filtering out the very talent your business needs most? 

Too often, organisations rely on rigid qualifications or narrow job criteria when hiring —overlooking candidates with the right skills to thrive. A skills-first approach to hiring flips that script, focusing on what people can do, not just what’s on their CV. The result? Access to a broader, more diverse talent pool and teams that are better equipped to adapt and grow.

Skills-based hiring is more than a recruitment tactic—it’s a strategic shift that builds more agile, empowered, and future-ready organisations. In this article, I explore why this approach is gaining momentum, the value it creates, and how to make it work in your business—both in hiring and beyond. 

Why now for skills-based hiring?

The way we work is evolving, opening the door to smarter, more dynamic hiring. Today, AI increasingly handles manual, process-driven tasks, freeing employees to focus on higher-value work and creating new opportunities for upskilling and growth. As roles shift, it’s essential to prioritise adaptability, learning potential, and practical skills—not just previous job titles.

Career paths are also far less linear than a decade ago. Lateral moves, second careers, and portfolio working are more common. Many people are developing valuable skills outside traditional roles, through self-taught digital tools or leadership in side projects. Skills-based hiring lets employers recognise this broader value.  

Additionally, with up to five generations working together, expectations around career progression vary widely. Younger workers often prioritise learning and internal mobility over climbing a traditional ladder, seeking roles that encourage growth rather than just advancement. A skills-first approach helps organisations meet these evolving expectations while unlocking untapped potential.

Remote and cross-border hiring has also expanded talent pools but made comparisons harder. Job titles, qualifications, and career norms differ by market. Focusing on skills offers a consistent, practical way to assess candidates—regardless of location or background. 

What are the benefits? 

• Widening talent pools: Removing rigid credential requirements helps employers find capable candidates faster.
• Improved retention: Research from Boston Consulting Group shows that skills-based hires stay, on average, 9% longer than traditionally hired peers.  ​     ​
• Strengthening an existing workforce: Recognising adjacent skills that employees have developed in their roles create new opportunities for growth and internal movement.  
• Greater diversity: By hiring for ability rather than background, companies can build more inclusive teams with broader perspectives. 

So, how do you do it?

Implementing a skills-based approach isn’t a quick fix. It requires long-term commitment, but companies can start with a few practical steps: 

• Start small: Begin with one team, role, or department to pilot the approach. This focused effort allows you to learn and adapt before scaling across the organisation.
• ​​​Define the skills taxonomy: Clearly map out the key skills essential for success across your organisation—identifying gaps not just for individual roles, but for teams and departments as a whole. This approach moves beyond outdated job descriptions and assumptions, providing a clear, holistic framework to assess and develop the capabilities that truly matter across the business.
• Consider removing the CV: Or at least reduce its influence in the hiring process. Use structured interviews, practical skills assessments, or work samples to get a more accurate picture of candidates’ abilities.
• Upskill hiring managers: Provide training and resources so hiring managers can confidently identify and assess skills and potential, rather than defaulting to past experience or educational background.
• Partner up: Working with a recruitment partner who understands and supports skills-based hiring can accelerate the process. They can help refine job criteria, design fair assessments, and surface candidates who might otherwise be overlooked.
• Track and learn: Collect data and feedback from your pilot to understand what’s working and what isn’t. Use these insights to refine the process and prepare for broader implementation. 

Long-term success

For enterprise organisations, shifting to skills-based hiring is a journey that requires internal alignment and strong external support. The right recruitment partner can help map skills, redefine roles and build a scalable model.

Companies that commit to this approach often see cost savings, faster hiring and better candidate experiences, while also future-proofing their workforce.

Not sure where to begin? Start by working with your recruitment partner to test, learn and scale what works.

In a changing talent landscape, skills-based hiring is no longer a buzzword. It’s a strategic advantage.