Skills-Based Hiring: Why What You Can Do Matters More Than Where You Studied.

The job market is changing fast, and relying solely on degrees to judge a candidate’s potential is quickly becoming outdated. More and more companies are turning to skills-based hiring—an approach that focuses on what a person can actually do rather than just where they went to school.

Why Skills-Based Hiring is Catching On

  1. Finding the Right Talent Faster
    Many industries are struggling to fill positions, and requiring a degree often shuts out talented people who have gained skills through training , certifications, apprenticeships, or self-learning. Removing that barrier helps companies connect more with a wider pool of candidates.
  2. Prioritising Real-World Ability
    A degree doesn’t always mean someone is job-ready. Hands-on experience—whether in finance, marketing or customer service,—can be a much stronger indicator of success. That’s why more employers are using skills tests, in tray exercises, and project-based assessments instead of just checking for a degree.
  3. Boosting Diversity and Inclusion
    Not everyone has access to a degree education, but that doesn’t mean they lack talent. Skills-based hiring opens the door for a broader range of candidates, creating a workforce that’s more diverse and inclusive.
  4. Hiring Faster, Keeping Employees Longer
    When you hire based on skills, you’re more likely to find the right fit—meaning employees are happier, perform better, and stick around longer. That’s a win-win for both companies and job seekers.

How Companies Can Shift to Skills-Based Hiring

  • Rewrite Job Descriptions: Focus on the skills needed rather than listing a degree as a requirement.
  • Use Skills Assessments: Include practical tests, take-home tasks, or real-world challenges in the hiring process.
  • Recognise Alternative Credentials: Consider portfolios, industry certifications, open-source contributions, or hands-on experience.
  • Encourage Growth and Learning: Support employees with training programs, mentorship, and opportunities to build new skills.

Who’s Leading the Way?

Industries like tech, healthcare, marketing,  finance and skilled trades are already making the shift. Big names like Google, Tesla, and IBM have dropped degree requirements for many roles, setting an example for others to follow.

The Bottom Line

Skills-based hiring isn’t just a passing trend—it’s the future of work. By focusing on what candidates can actually do, companies can tap into a wider pool of talent, drive innovation, and build stronger teams. For job seekers, this means the key to career success lies in continuously learning, adapting, and proving their skills in real-world settings.

At the end of the day, the most important question isn’t “Where did you go to school?” but “What can you bring to the table?”

Beam Recruit is a specialist accountancy and finance recruitment consultancy based on three principles: transparent, honest and ethical. Whether you’re recruiting for a position or looking for your next role, Beam can help you along the way.