Skills-Based Hiring Trends

The most important skills today and in the next years will be human capabilities: critical and analytic thinking, resilience, leadership and influence, overlaid with technological literacy and AI skills to amplify these human capacities. World Economic Forum's new Future of Jobs Report provides a deep and broad analysis of the drivers of labour market transformation, the outlook for jobs and skills, and workforce strategies across industries and nations. It's a really worthwhile deep dive if you're interested in the topic (link in comments). Here are some of the highlights from the Skills section, which to my mind is at the heart of it. 🧠 Analytical Thinking Leads Core Skills. Skills like analytical thinking (70%), resilience (66%), and creative thinking (64%) top the list of core abilities for 2025. By 2030, the emphasis shifts even more towards AI and big data proficiency (85%), technological literacy (76%), and curiosity-driven lifelong learning (79%). This shift underscores the critical role of technology and adaptability in future workplaces. 📉 Skill Stability Declines but at a Slower Rate. Employers predict that 39% of workers' core skills will change by 2030, slightly lower than 44% in 2023. This reflects a stabilization in the pace of skill disruption due to increased emphasis on upskilling and reskilling programs. Half of the workforce now engages in training as part of long-term learning strategies compared to 41% in 2023, showcasing the growing adaptation to technological changes . 🌍 Economic Disparities in Skill Disruption. Middle-income economies anticipate higher skill disruption compared to high-income ones. This disparity highlights the uneven challenges of transitioning labor forces across global regions, particularly in economies still grappling with structural changes. 🚀 Tech-Savvy Skills in High Demand. The adoption of frontier technologies, including generative AI and machine learning, is increasing the demand for skills like big data analysis, cybersecurity, and technological literacy. These trends indicate that businesses are aligning workforce strategies to integrate these advancements effectively. 📚 Upskilling Is the Norm, Not the Exception. By 2030, 73% of organizations aim to prioritize workforce upskilling as a response to ongoing disruptions. This reflects a shift in corporate investment priorities towards human capital enhancement to maintain competitiveness.

Imagine you're the CFO of a global company and someone pitches you a recruitment automation solution that will do the work of 400 recruiters and save you $30M per year. What would you do? When I was at LinkedIn's Talent Connect in October, I attended a workshop with John Vlastelica in which he shared that a global company had decided to implement a recruiting automation solution that would allow them to save $30M in costs by eliminating 400 recruiter positions. They also reduced the time to hire from 11 days down to 3. He shared that another company had used recruitment automation software to hire 300,000 workers with minimal human involvement - people only came into the process after background checks had been performed. They also maintained candidate quality and candidate experience while increasing the speed of hire. These kinds of case studies should not surprise anyone, although it is sobering to anyone in talent acquisition - the rapid advancement of AI and automation in recruiting is both exciting and concerning. On the one hand, the potential for efficiency gains, cost savings, and improved candidate experience is huge and undeniable, as these examples demonstrate. On the other hand, we must also be mindful of the human impact - thousands of recruiters are seeing their roles transformed or eliminated. As talent acquisition professionals, it's important to be thinking about how to adapt and provide value in this changing landscape. Some key questions to consider: -How can we upskill and position ourselves to work alongside AI rather than be replaced by it? -What are the uniquely human elements of recruiting that AI can't replicate, and how do we double down on those? -How might our roles evolve to focus more on passive talent sourcing, talent intelligence/advisory, strategic workforce planning, employer branding, candidate engagement, and employee experience? For companies considering or implementing recruitment automation, I believe it should be a thoughtful, strategic decision - not just a blind cost-cutting measure. Here are some key considerations: -What is the optimal mix of human and automated touchpoints to balance efficiency and candidate experience? -How will the balance of AI and human involvement vary based on the labor market dynamics for each role? Roles with talent scarcity may require more human touch to attract and engage candidates, while high-volume roles with ample supply lend themselves to greater automation. -How will we redeploy or reskill displaced recruiters? -How do we maintain our employer brand and human touch with increased automation? The future of recruiting is undoubtedly both human and machine - but the mix is up to each company and may vary by role/department. I'm curious to hear your thoughts - have you been impacted by AI/automation? How are you and/or your company preparing for the intersection of AI/automation and recruiting? #AI #Recruiting #FutureOfWork

Agree? Do you want this practice to be changed immediately? There are several compelling reasons why companies should consider shifting away from asking for salary slips and focus on hiring based on experience and skills: Promotes Fairness and Equality: Relying on salary history can perpetuate wage gaps and discrimination. If someone has been underpaid in their previous job due to bias or other factors, using their salary history as a benchmark can unfairly limit their earning potential. Shifting the focus to experience and skills helps level the playing field and promotes fairness and equality in hiring. Skills-Based Hiring Improves Quality: Hiring based on experience and skills allows companies to focus on what really matters – a candidate's ability to perform the job. This approach ensures that candidates are selected for their competency and potential to excel in the role rather than their previous compensation. Encourages Employee Development: When companies prioritize skills and experience over past salaries, they are more likely to hire candidates with growth potential. This can foster a culture of continuous learning and development within the organization, as employees are hired based on their ability to adapt and acquire new skills. Attracts Diverse Talent: Salary history can disproportionately affect women and underrepresented minorities, as they often face pay disparities. Removing this requirement can make job opportunities more attractive to a wider range of candidates, leading to a more diverse and inclusive workforce. Reduces Administrative Burden: Verifying salary history can be a time-consuming and often unnecessary administrative task. Eliminating this step simplifies the hiring process, allowing HR teams to focus on more critical aspects of candidate assessment and selection. Aligns with Future Job Market Trends: The job market is evolving rapidly, with many traditional roles becoming obsolete and new skills in high demand. Relying on past salaries may not accurately reflect a candidate's worth in the current job market, making skills-based hiring more relevant and adaptable. Enhances Employee Satisfaction: Employees who are hired based on their skills and experience are more likely to feel valued and confident in their abilities. This can lead to higher job satisfaction, increased engagement, and better retention rates. Fosters Innovation: A diverse workforce with a range of skills and experiences can bring fresh perspectives and innovative ideas to the company. By hiring based on skills and experience, companies can tap into a broader pool of talent, potentially driving innovation. Compliance with Laws: Some regions or jurisdictions have laws or regulations that prohibit or discourage employers from asking about salary history due to concerns about pay equity. Adhering to these laws helps a company avoid legal risks and reputational damage. Reshare. #salaryslip #hr #practice

I recently co-authored an article with Scott Hanselman for Communications of the ACM about a disturbing trend: 𝐒𝐞𝐧𝐢𝐨𝐫𝐢𝐭𝐲-𝐁𝐢𝐚𝐬𝐞𝐝 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐂𝐡𝐚𝐧𝐠𝐞. While agentic AI tools act as a massive "boost" for senior engineers, they create an "AI drag" for early-in-career (EiC) developers. The data is sobering: since the release of GPT-4, employment for 22–25-year-olds in AI-exposed roles has fallen by ~13%. If we move toward a "Hire Seniors, Automate Juniors" model, our talent pipeline will collapse. Organizations will eventually face a future without the next generation of experienced architects. Scott and I propose a shift from simple hiring to 𝘗𝘳𝘦𝘤𝘦𝘱𝘵𝘰𝘳𝘴𝘩𝘪𝘱 𝘢𝘵 𝘚𝘤𝘢𝘭𝘦: • Move beyond "The Pyramid": Shift from augmenting capacity to deliberately refreshing senior talent. • The Preceptor Model: Senior mentors managing 3-5 EiCs, focusing on "systems taste" and architectural intuition. • Socratic AI: Developing tools that coach and challenge learners rather than just handing over the answer. The future of software engineering isn't just about how much code AI can generate—it’s about how we preserve the craft. Read the full piece here and let leave a comment with your thoughts: https://lnkd.in/g9zPsN7r

The recent World Economic Forum’s Future of Jobs Report 2025 highlights the trends reshaping the global labor market. WEF estimates a net increase of 78 million jobs with employers expecting 40% of the skills required to shift over the next 5 years. The report notes “helping workers achieve the right mix of technical and human skills will be vital as the future of work continues to evolve.” These trends and forecasts align with a recent podcast conversation I had with John Nixon. It doesn’t get more energetic than a workforce development convo with John who leads Siemens Digital Industries Software's Energy & Chemicals Industry. John: “What excites me is workforce development is so incredibly important to us in Energy & Chemicals.” He emphasized the industry’s skill challenges along with labor shortages - noting 10% of engineer demand will be from data centers by 2035. We doubled down on intersections. We discussed the industry skills intersection as digital twins go into the field. We looked at the timely intersection of supply and demand changes in engineering education. John emphasized the “tremendous skills gap” that requires a new level of skills development due to digital transformation, as well as talent turnover in academia and industry. The challenges are global. That’s why you see whole regions like the European Union recommending microcredentials to promote a culture of lifelong learning. The United Arab Emirates adopted a policy to leverage microcredentials to strengthen opportunities for learning and employability. It’s clear a new level of digital fluency is required to meet the transformation in the energy industry. Credentials play a key role in providing recognition for knowledge and skills and connecting talent with employers. They address the need for more flexible and accessible learning pathways. Now more than ever, academia and industry must collaborate on creative, cost-effective digital solutions. sie.ag/76vR91 #workforcedevelopment

Business leaders are grappling with skills shortages and a lack of candidates with relevant experience for in-demand roles. The problem is clear - but fortunately so is the solution: applied learning (or on-the-job training) through reskilling, upskilling, and early career talent programs. The current misalignment between the supply of skilled talent and the demand of employers is at the heart of my latest piece in Fast Company. Co-authored with Opportunity@Work founder & CEO Byron Auguste, we explore the critical opportunity to provide, "huge boosts to business productivity and to the wider economy through pathways that are built for all workers at all stages in their career and educational journey." In this piece, you can learn more about: - The 30 million STARs (workers Skilled Through Alternative Routes, rather than bachelor’s degrees) in the US who already have the skills for roles with at least 50% higher salaries than their current jobs, if employers #TearThePaperCeiling.  - How, according to Multiverse research with The Burning Glass Institute, apprenticeships could move 830,000 people in the US into higher-wage roles, resulting in $28.5 billion more in annual earnings.  - The emerging in-demand roles, including cybersecurity and data analysis, that are increasingly being filled through apprenticeship pathways. This piece underscores the need for the private and public sectors to collaborate and scale these programs - and with skills-based hiring increasingly prominent and various states offering tax credits for workforce training, we are already making strides. As the US economy looks for innovative ways to build new industries, let’s ensure we also build effective pathways to success for workers of all backgrounds, all ages, and all career stages. #FutureOfWork #SkillsGap #TalentDevelopment

Have you ever felt that you are skilled for a task but don’thave a degree to do that? I recently came across an insightful report from Harvard Business School and Burning Glass Institute: “Skills-Based Hiring: The Long Road from Pronouncements to Practice.” It unpacks a major shift in hiring—where companies claim to value skills over degrees—but are they truly changing how they hire? Here are some key insights from the study: 1. Skills based hiring is growing but slowly • From 2014 to 2023, job postings dropping degree requirements increased almost fourfold. • Yet, only 3.6% of all job roles have actually removed degree requirements. 2. Hiring patterns are not changing much • Among firms that removed degree requirements, only 3.5% more non-degreed workers were hired. • Net impact? Just 97,000 out of 77 million annual hires—or less than 1 in 700 hires. 3. Three types of companies in the shift • Skills-Based Hiring Leaders: Increased hiring of non-degreed workers by nearly 20% (e.g., Apple, Walmart, GM). • In Name Only Firms: Removed degree requirements but made no real hiring changes (e.g., Bank of America, Oracle). • Backsliders: Initially hired more non-degreed workers but later reverted to old habits (e.g., Nike, Uber, Delta). 4. Skills based hiring benefits • Non-degreed hires earn 25% more when placed in roles that previously required degrees. • 10% higher retention rates for non-degreed employees vs. degree holders. While the shift to skills-based hiring is promising, this report highlights that policy changes alone aren’t enough—companies need to follow through with real hiring actions. Do you think skills-based hiring will truly replace degree-based recruitment in the near future? #skills #degree

As we embark on 2024, the landscape of #talent and #skills is evolving more rapidly than ever. To kick off the new year, I wanted to share a few perspectives, derived from my practice and client discussions, on the trends that will shape the months to come 1. CEO's top priority: Talent Talent retention and development have become pivotal, with 75% of C-suite leaders investing significantly in this area. This focus isn't just beneficial; it's essential for both financial and non-financial gains. (see https://lnkd.in/eznB3iVQ) 2. The Ongoing Scarcity of (Tech) Talent Despite some relief in the talent market, the shortage, especially in high-demand fields like tech and AI, remains a critical challenge. Companies must strategize to bridge these gaps effectively. (see https://lnkd.in/epqE6yWX and https://lnkd.in/e4gQtr_W) 3. The Rising Importance of Skills With the shelf-life of skills shrinking, organizations are now investing up to 1.5% of revenue in learning and development while the shift towards skills-based hiring is becoming more pronounced. (see https://lnkd.in/ePZi3nWc and https://lnkd.in/e3b-wqs8 4. GenAI: Transforming Workforces Generative AI is redefining roles and skills across industries. Our studies show a potential 40% uplift in individual performance, yet also a risk of decreased diversity of thought. A people-first approach in AI transformation is key. (see https://lnkd.in/ePJnMXdK and https://lnkd.in/eri5Ewir) 5. The ultimate resilience driver As companies undergo restructuring efforts, they need to proactively address retention of their key talents but also invest in skill proficiency as is directly correlates with productivity gains. Upskilling and responsible re-deployment are more crucial than ever. (see "Organizational Resilience": https://lnkd.in/eKNZ_vb8) Data and tech talent management will be key enablers with the use of analytics and AI in talent management for predictive hiring, personalized learning and development, and performance management. The ability to provide an integrated perspective across the talent value chain will be a differentiator. As I share these reflections, shaped by a tapestry of conversations and experiences, I welcome further dialogue on how these insights might resonate with your organization.

The rapid evolution of technology and the growing influence of AI in the workplace have intensified competition for top talent. Organizations are under increasing pressure to rethink their hiring strategies, and skills-based hiring is gaining significant momentum. Yet many companies remain anchored to outdated degree requirements when sourcing candidates — a practice that not only limits their talent pool but actively undermines their ability to compete. A recent study by the Burning Glass Institute highlights the scale of this missed opportunity: workers with non-degree credentials represent 58% of the workforce, yet they are routinely overlooked and systematically screened out during the hiring process. The same study points to a growing number of forward-thinking firms that are doing things differently. Companies like LinkedIn, Nordic Global, and Procore Technologies consistently incorporate credentials into their job postings and hiring decisions — linking specific certifications to business-critical skills. HubSpot, for instance, prioritizes Inbound Marketing certification, while Infosys values AWS Architect credentials. This approach allows them to hire with greater precision and access talent their competitors miss. The benefits extend well beyond organizational performance. Credential-based hiring creates meaningful economic opportunity, particularly for historically underrepresented groups. Research shows that women gain an average of $1,600 in annual wages through credentialing, while men see gains of $916 — making it a powerful tool for companies committed to advancing equity in hiring. The bottom line is straightforward: in an era where technical skills can become obsolete in months, companies need smarter, more dynamic ways to assess capability. Organizations that develop “credential fluency” — the ability to identify, validate, and hire based on quality credentials — will consistently access talent that others overlook.

In recent years, we’ve seen a steep decline in employers using GPA to screen candidates for entry-level roles—dropping from about 73% of Job Outlook respondents in 2019 to just 42% this year. So what are employers prioritizing when they hire early talent? Beyond academic major (which most employers still consider), the factors cited by more than half of employers center on experience and skills—whether that experience comes through an internship or through meaningful campus involvement like extracurriculars, leadership roles, and student organizations. To me, this is a clear signal of where hiring is headed: skills-based hiring isn’t a buzzword—it’s a shift in how employers define readiness. And it’s also a reminder that the most effective employers don’t treat internships as a nice-to-have. They treat them as a core talent strategy. Employers are telling us that industry experience matters. And for students who are still in school, the most direct way to gain that experience is through internships—especially when those opportunities are within your organization. My advice for employers looking to recruit top entry-level talent: lean into your partnerships with colleges and universities. Use your resources to help develop students who bring both relevant experience and strong, transferable skills—communication, collaboration, problem-solving, and professionalism. Those are the candidates you want to hire. And working directly with colleges is one of the best ways to build a steady, sustainable pipeline of talent. National Association of Colleges and Employers