Skills-Based Hiring Is Here to Stay — Get Started Now

A recent survey by Resume Templates, an online resume development resource, highlights a trend among U.S. companies of eliminating bachelor’s degree requirements for certain roles. The May survey of 1,000 hiring managers found that 1 in 4 companies plan to drop degree requirements for some positions by the end of 2025, prioritizing relevant experience and practical competencies over higher education.

This is part of a wider shift, with 21% of companies having removed four-year degree requirements in 2024, the survey found. In 2024 and 2025, this was done mostly for entry-level roles (at 66% of employers that dropped degree requirements), followed by midlevel (54%) and senior-level positions (23%). More than half (53%) of hiring managers report preferring younger candidates with strong soft skills but no degree, underscoring the importance of interpersonal abilities and cultural fit, according to the survey.

Companies report significant benefits, including more diverse workforces (54%) and higher application volumes (83%).

“These findings prove the success of the skills-based hiring model, underscoring the importance of putting demonstrated competencies before credentials in the hiring process,” said SHRM CHRO Jim Link, SHRM-SCP. 

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Embrace the Proven Success of Skills-Based Hiring

Traditional reliance on degree requirements has often excluded talented individuals who possess the skills and experience needed to excel, but lack formal credentials. Experts say this approach has inadvertently reinforced systemic inequities, as access to higher education is often limited by factors such as socioeconomic status and geographic location. 

By shifting the focus from academic qualifications to demonstrated competencies, companies can unlock the potential of a broader talent pool, ensuring that capable individuals are not overlooked simply because they lack a degree, Link said.  

This new approach is not only a win for job seekers — it’s a strategic advantage for businesses, he said, as it fosters workplace diversity and ensures a more equitable hiring process. For HR professionals, this paradigm shift represents an opportunity to lead meaningful change, aligning recruitment practices with modern workforce realities and organizational goals.

“Skills-based hiring allows HR professionals to enjoy the benefits of larger and more diverse applicant pools,” Link said. “Due to economic restrictions, caregiving responsibilities, and more, talented candidates may not have access to higher education. By expanding its definition of qualification, recognizing proven competencies as an additional marker of merit, HR can lower the barrier of entry to the workplace.”

Organizations can move forward in their journey toward skills-based hiring by adjusting their hiring practices. They can create a platform for candidates to demonstrate their skills by implementing an assessment in the hiring process, Link recommended. For example, a hiring manager in the computer science industry might require candidates to perform a coding exam. Furthermore, organizations can revise their job listings, encouraging all applicants — regardless of background — to apply, reaping the reward of an expanded talent pool.  

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“HR professionals can begin their skills-based hiring initiative with a simple change of mindset,” Link said. “Instead of dwelling on a candidate’s career gap or lack of degree, grant them the opportunity to prove their merit, perhaps by requiring a portfolio submission or creating a skills evaluation.”