Quality candidates are becoming more difficult to source through traditional means. As a result, I see many organizations and hiring managers turning away from the age-old resume-first approach.

This shift is timely. With demand set to outweigh the supply of skilled workers by 2030—and the expected cost of the shortage totaling in the trillions—it’s clear that a new approach to hiring is not just beneficial but essential.

Skills-first hiring practices offer a promising solution across industries. Shifting the focus to a candidate’s skills allows organizations to quickly fill gaps with qualified candidates and fosters a more dynamic and inclusive company culture.

Uncovering A Future Leader

I’ve seen firsthand how prioritizing skills over traditional qualifications can uncover hidden talent and transform a team. Ten years before I sold my company, I hired a candidate for an entry-level, hourly role. At the time, he was transitioning from being a minister to entering the corporate world. I saw potential in the skills he possessed, even though he had no direct experience. So, I made the hire.

I was not disappointed—far from it. He worked hard, returned to school and progressed into a leadership role in our customer service team, turning it into one of the best in our industry. Eventually, he made his way to VP of Sales—despite a lack of previous sales leadership experience—and helped bring on some of our most significant growth years.

He didn’t have the education or on-the-job experience we would normally require. He succeeded anyway and helped my company grow and thrive. This is the beauty of skills-first hiring.

Skills Over Degrees

As the name implies, a skills-first hiring approach shifts the focus during talent acquisition. Instead of screening for education, experience or job titles, there is an emphasis on the skills the candidate brings to the table.

By screening for specific skill sets, employers can uncover talent that might otherwise be overlooked in a traditional hiring process. In fact, research by LinkedIn suggests that talent pools can grow 10 times larger—19 times in the U.S.—when hiring skills first.

This is because it brings non-degreed candidates into consideration. That degree can be a sticking point for many organizations, but I think you’re doing your business a disservice if you put so much emphasis on traditional education.

Compared to their colleagues with college degrees, non-degree holders who were hired for positions that waived degree requirements had a retention rate that was 10 percentage points higher after two years according to a study conducted by The Burning Glass Institute and Harvard Business School.

This hiring process tends to source talent better suited to the role and more able to grow and contribute. This can, in turn, help you build a better organizational culture where employees continue to grow alongside your company.

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