News Recruitment
Skills-based hiring is gaining ground with employers and candidates

The days when CVs and covering letters were the keys to unlocking dream jobs may be over, with both employees and employers leaning on alternative recruitment methods.

Nine in 10 young employees believe they are more likely to secure their dream job through a skills-based hiring process, while 94 per cent of employers agree that skills-based hiring is more predictive of on-the-job success than CVs, according to a new report called The State of Skills-Based Hiring 2024 from TestGorilla.

Skills-based hiring methods are clearly most popular among younger cohorts of candidates, with 82 per cent of 25- to 34-year-olds preferring this avenue of recruitment. Meanwhile, among all age groups, 68 per cent want to see organizations increase their use of skills-based hiring in the future.

The conventional approach to recruitment has long relied on applicants submitting CVs, with shortlisted candidates then going through a series of interviews.

However, talent discovery platforms are increasingly demonstrating their efficacy in pinpointing individuals who possess vital skills such as effective communication, problem-solving, and critical thinking. These digital tools offer a fresh avenue for talent identification beyond the constraints of traditional hiring processes.

A major thread emerging out of the most recent TestGorilla study is that candidates are not only showing a strong preference for skills-based hiring but enjoying greater success when application processes revolve around these recruitment methods.

Indeed, more than eight in 10 (81 per cent) say they have gained access to new employment opportunities because of skills-based hiring, while 85 per cent of survey respondents said they prefer it because it gives them the opportunity to demonstrate their abilities.

Employers embrace skills-based hiring

More than eight in 10 employers (81 per cent) are leveraging skills-based hiring methods in 2024, up from 73 per cent in 2023 and just 56 per cent in 2022.

But which sectors are embracing it the most? Marketing tops the list, with 95 per cent of companies using skills-based hiring methods. This is closely followed by construction and scientific/technical services (both 89 per cent).

“We are three years into producing The State of Skills-Based Hiring reports and the trend is undeniably clear – skills-based hiring is becoming the dominant and preferred recruitment method, not just for businesses, but for employees seeking new jobs,” said Wouter Durville, CEO and co-founder of TestGorilla.

“Degree requirements are not going away yet, with 59 per cent of employers saying it is actually more important for candidates to have degree qualifications. But skills-based hiring methods are complementing and in many cases replacing traditional recruitment, and organizations that don’t give non-degree-holding candidates a chance to demonstrate their skills are in danger of missing out on an untapped pool of talent.”