Nine in ten young employees believe they are more likely to secure their dream job through a skills-based hiring process, while 94% of employers agree that skills-based hiring is more predictive of on-the-job success than CVs. This is according to talent discovery platform TestGorilla, which has just released the third of its annual skills-based hiring reports: ‘The State of Skills-Based Hiring 2024’.
Skills-based hiring methods are clearly most popular among younger cohorts of candidates, with 82% of 25–34-year-olds preferring this avenue of recruitment. Meanwhile, among all age groups, 68% want to see organisations increase their use of skills-based hiring in the future.
The conventional approach to recruitment has long relied on applicants submitting CVs, with shortlisted candidates then going through a series of interviews.
However, talent discovery platforms are increasingly demonstrating their efficacy in pinpointing individuals who possess vital skills such as effective communication, problem-solving, and critical thinking. These digital tools offer a fresh avenue for talent identification beyond the constraints of traditional hiring processes.
A major thread emerging out of this year’s TestGorilla study is that candidates are not only showing a strong preference for skills-based hiring but enjoying greater success when application processes revolve around these recruitment methods.
Indeed, more than eight in ten (81%) say they have gained access to new employment opportunities because of skills-based hiring, while 85% of survey respondents said they prefer it because it gives them the opportunity to demonstrate their abilities.
“If you’re applying for a remote job, chances are you're competing against hundreds, if not thousands, of other candidates for one position. It’s very easy to go unnoticed. But with talent assessments, I know I have a chance to show that I’m a great fit for the role.” – Joan Pelayo, marketing specialist candidate.
If the trends identified in the first three TestGorilla reports continue, then this is already happening. More than eight in ten employers (81%) are leveraging skills-based hiring methods in 2024, up from 73% in 2023 and just 56% in 2022.
But which sectors are embracing it the most? Marketing tops the list, with 95% of companies using skills-based hiring methods – this is closely followed by construction and scientific/technical services (both 89%).
Commenting on the changing employment market, TestGorilla CEO and co-founder Wouter Durville, said: “We are three years into producing The State of Skills-Based Hiring reports and the trend is undeniably clear – skills-based hiring is becoming the dominant and preferred recruitment method, not just for businesses, but for employees seeking new jobs.
“Degree requirements are not going away yet, with 59% of employers saying it is actually more important for candidates to have degree qualifications. But skills-based hiring methods are complementing and in many cases replacing traditional recruitment, and organisations that don’t give non-degree-holding candidates a chance to demonstrate their skills are in danger of missing out on an untapped pool of talent.”
