‘Skills-based hiring is replacing degree-based hiring’! Read on to see why

The pandemic overturned some long-held beliefs while hastening others. After the pandemic, industry-oriented skills have become the new degree equivalent. The pandemic might have cracked the ratchet of degree inflation, forcing prominent hiring managers to pay greater attention to recognizing critical job skills and validating skills before hiring.

During the pandemic, skill-based hiring accelerated and is now a trend. A recent LinkedIn report reveals a 21% increase in recent job postings emphasizing skills and responsibilities instead of qualifications and requirements. In 2020, the number of jobs that don’t require a degree increased by nearly 40%.

What skills do talent teams want?
Today, talent teams prefer to hire people with specific skill sets rather than sifting through resumes to find people who can get the job done. Though technical knowledge remains the primary consideration, this trending hiring practice also emphasizes foundational and transferable skills that can be applied to some extent across a wide range of occupations and industries. It was revealed in the Future of Work Trends 2022 Report that 69 percent of companies value curiosity and eagerness to learn above degrees and previous experience.

Why is skill-based hiring necessary?
Today, many established tech companies prefer skill-based hiring because it allows them to identify quality candidates for difficult-to-fill positions, while saving time, money, and energy. Other benefits of skill-based hiring include greater diversity and retention. LinkedIn data shows that non-traditional four-year degree holders stay at their companies 34% longer.

How does this affect students?
A website called Glassdoor compiled a list of top employers who don’t require college degrees from their applicants. These companies include Google, Apple, and IBM. Significant changes in hiring practices have led to a greater emphasis on upskilling and mastering industry-specific skills. The popularity of online learning and blended learning modules has exploded in the past two years, especially among working professionals.

E-learning platforms play a key role!
According to Statista, Global Business Data Platform, India has 700 million active internet users. By enabling skill-based education and employment, e-learning platforms facilitate the development of an upskilled workforce. The majority of jobtech startups are also enrolling students without considering their education background, age, gender, industry, or past careers. Newton School, for example, regularly places students without a technical background into full-stack developer roles.

Hiring managers of the new generation recognize the importance of ditching CVs and shifting to skill-based hiring. In addition to reducing the need for on-the-job training, it helps to hire strong candidates, resulting in faster company growth. New tools and technology, such as job-tech platforms, are able to translate a specific degree into a vital skill language. Automation, digital platforms, and other innovations are changing the fundamental nature of work and recruiting people who have never been considered.