The Rise of Skills-Based Hiring: How to Thrive in the New Landscape

The old rules of job hunting just don’t cut it anymore. For years, a college degree was the golden ticket, a prerequisite for most desirable roles. But the world has changed.

As the Harvard Business Review pointed out back in 2017, a shift was already underway, with employers—especially in tech and management—ditching degree requirements in the face of talent shortages. The pandemic only accelerated this trend.

The New Landscape

Today, skills-based hiring isn’t just a buzzword; it’s the new normal. A recent HireVue survey of 6,000 talent leaders across the US, UK, and Australia revealed some compelling statistics: 21% have already replaced resumes with skills-based tests, 34% are more comfortable using skills assessments throughout the hiring process, and a staggering 65% use these assessments to gauge a candidate’s potential.

This isn’t just a Western phenomenon. In Southeast Asian markets like the Philippines, the shift is equally pronounced. LinkedIn data shows that three-quarters of hiring professionals prioritize skills-based hiring. As early as 2019, a quarter of recruiter searches on LinkedIn included skills filters. Millions of users are responding, adding skills to their profiles, and investing in their development through platforms like LinkedIn Learning.

Looking ahead, experts predict that the rise of AI will further fuel the adoption of skills-based hiring, enabling even more sophisticated and objective skills assessments.

How to Thrive in the Skills-Based Hiring Era

So, what does this mean for you? It means your job search needs a reboot. Employers are screening differently, so you need to adapt and showcase your abilities more effectively than ever before. Here’s how to navigate this new landscape and land your dream job:

1. Know Your Skills (and Their Value)

Employers are looking for a specific skillset, and it’s your job to demonstrate you have it. Before you even start applying, take a hard look at your own skills. What are you good at? What are you passionate about?

Remember, skills fall into two categories: hard skills (technical expertise) and soft skills (how you work and interact with others). Increasingly, employers value transferable skills—a combination of both—like problem-solving, communication, and critical thinking.

Conduct a skills gap analysis. Identify the skills you need for your target roles and commit to developing them. Platforms like LinkedIn Learning offer a wealth of resources for upskilling. Don’t just focus on the technical stuff; those transferable skills are just as crucial for standing out.

2. Showcase Your Skills Strategically

Your resume and LinkedIn profile are your marketing materials. They need to scream “I have the skills you’re looking for!” Tailor them to each specific job you apply for. Carefully review the job postings and highlight the relevant skills in your executive summary (resume) and about section (LinkedIn). Make it easy for recruiters to see why you’re a perfect fit.

3. Ace the Skills Assessment

Now, it’s time to show that you actually have the skills you’ve listed on your resume. Be prepared for skills-based assessments and practice, practice, practice—especially if you’re applying for a technical role. Find practice tests online as these assessments aren’t just about technical knowledge; they often evaluate problem-solving abilities—a highly valued transferable skill.

4. Master the Behavioral Interview

You’ve made it through the assessment; now comes the interview. Skills-based hiring often involves behavioral questions designed to assess your abilities in real-world scenarios. Be ready to answer questions about your past experiences and how you handled specific situations.
The STAR method is your secret weapon here: Situation, Task, Action, Result. Use it to structure your answers and clearly demonstrate how you’ve applied your skills in the past.

Take Control of Your Career

In today’s market, a degree is just the starting point. Continuous learning and skills development are essential. Embrace the skills-based hiring revolution, and you’ll open up a world of new opportunities.

This could be the year for an exciting new chapter in your professional career, and it could be waiting for you here at Booth & Partners. Start the new year and be a step closer to your dream job by checking out our open roles here.