Why more employers are hiring based on skills – not just qualifications

When it comes to applying for a new role, the first thing you check is the list of requirements: communication skills, teamwork, problem-solving – and often, a degree in a relevant field.

But increasingly, the way companies hire is changing – with qualifications becoming less important and hiring managers' focus shifting to skills. LinkedIn data shows that a broader shift towards skills-first hiring has the potential to open up the workforce, both widening the pool of talent in areas experiencing labour shortages, and creating greater inclusion by enabling more people to be considered for roles they might not otherwise have been.

Why skills-first hiring breaks down barriers

When an employer looks at a CV, experience is key – but for many roles, and particularly entry-level or early career roles, the education portion has traditionally been central to getting an interview. However, in recent years, there have been signs of a shift in areas where this was particularly true – for instance, with the Big Four accounting firms. PwC no longer requires new employees to have a minimum 2:1 degree, and along with several of the big professional services firms, offers several apprenticeship opportunities.

Sue Duke , VP of global public policy and LinkedIn's Economic Graph, highlights LinkedIn data that shows more than 50% of hirers on LinkedIn explicitly use skills data to fill their roles, up over 30% between 2021 and 2022. "Adopting a skills-first approach to hiring, with hiring expanded beyond titles, companies, degrees and schools, would ensure the workforce is prepared for the jobs of the future and allow businesses to find the right workers for the jobs in demand," she says.

LinkedIn data shows that skills-first hiring would have a 27% greater impact on women than men, meaning that more women would be seen as prospective candidates for a role when assessed based on relevant skills. By widening the candidate pool, companies are more likely to find the best person for the job.

Hiring based on skills also opens opportunities for those in the early stages of their career, where people have less work experience. Globally, skills-first hiring would expand the talent pool for gen Z workers by more than 10 times – and in the UK, the impact on gen Z would be 19% larger than on gen X workers, LinkedIn data shows. Matching candidates by skills not only has the potential to help people find a role that suits them best, but could also have knock-on benefits for social mobility by looking at people's talent first and foremost.

"This conversation needs to be about empowering people looking for roles, particularly in the younger generation," says Felicity Halstead , founder at GoodWork , a social impact business that helps young people facing barriers find a way into work.

Halstead highlights the importance of employers being involved in upskilling and supporting young people who may not have been to university or had opportunities in their early life. "There's often an assumption that gen Z automatically have digital skills, but those who grew up in poverty may not have had access to broadband or devices to build those skills and employers should be conscious of that. We can't expect them to land in work already able to use tools with the same proficiency as their more privileged peers."

Halstead encourages employers to consider "how to support those individuals into work and make the most of their skills, in order to benefit from diverse talent".

It's also important that people understand what skills they have in order to find the roles best suited to them. This is particularly important for those in the early stages of their career looking to shine. James Kirkup , journalist and a senior fellow at the Social Market Foundation , suggests that even those pursuing qualifications such as degrees should have greater awareness of what skills their qualifications will provide, and not focus simply on the title. For example, a recent report by the University of Kingston on future skills showed that problem solving, critical thinking and creativity are just some of the core skills in demand by employers.

What skills do specific regions need?

LinkedIn’s Economic Graph insights also show what skills are in demand in specific areas and have been used by policymakers seeking to match training with demand. For instance, the data showed that one in five of the fastest growing jobs in the UK were in digital and tech. And in IT, there is overall demand for data engineers, but these skills are most sought after in the West Midlands, Manchester and Northumberland. By diving into the specific jobs in demand, local leaders are able to support in developing the relevant skills, whether highly specific, such as Python or other programming skills, or broader skillsets, such as digital marketing.

Knowing local skills gaps can help businesses and local bodies tailor training and support the growth of these sectors. "Increasingly, employers are looking beyond qualifications to the skills, ambition and potential that candidates can bring to a business," shared Jane Gratton , the deputy director of public policy at the British Chambers of Commerce. "That’s why, in local economies across England, Chamber-led Local Skills Improvement Plans are bringing businesses and training providers together to focus on skills. With a rapidly changing workplace, it’s vital everyone can develop the skills needed … now and in the future."

Reported by Siobhan Morrin , managing editor at LinkedIn News UK , using data from LinkedIn's Economic Graph .