Skills over resumes: Why it's time to rethink how you hire and grow talent

Let’s be honest—how many times have you seen a job ad that asks for a degree, five years of experience, and every skill under the sun? In 2025, that approach is starting to feel outdated.

However, forward-thinking employers are flipping the script. Instead of hiring based on job titles or degrees, they’re asking: What can this person actually do? Welcome to the era of skills-based hiring—and it’s not just a buzzword.

So, what is skills-based hiring?

It’s simple: rather than filtering candidates by credentials, you focus on the skills and capabilities they bring to the table. Think data analysis, project management, customer empathy, or coding—not just “Bachelor of Business, 2018.”

And it’s not just for hiring. Internally, it means mapping your workforce’s skills, identifying gaps, and helping people grow into new roles—without waiting for a promotion or a new degree.

Why it matters now

Here’s what’s driving the shift:

• Talent shortages: With skills evolving faster than ever, the perfect candidate on paper might not exist. But someone with 70% of the skills and a growth mindset? That’s gold.
• AI and automation: As roles change, so do the skills needed. Employers need agile learners, not static resumes.
• Employee expectations: People want to grow. If they can’t do it with you, they’ll find someone else who’ll let them.

What it looks like in practice

Let’s say you’re hiring a marketing analyst. Instead of asking for “3 years in a similar role,” you might look for:

• Ability to interpret data and tell a story
• Familiarity with tools like Google Analytics or Power BI
• Strong communication and stakeholder management

Then, you assess those skills—through portfolios, simulations, or even AI-powered assessments.

Internally, you might use a skills inventory to see who in your team already has those capabilities. Maybe someone in customer service is ready to pivot into marketing with a bit of upskilling.

Tools that can help

You don’t have to start from scratch. Here are some tools that can support a skills-first approach:

• AI-driven talent platforms
  These platforms use artificial intelligence to match candidates (internal or external) to roles based on their skills, not just their job titles. They can also recommend learning paths to close skill gaps.
• Learning experience platforms (LXPs)
  LXPs personalise learning by curating content based on an employee’s current skills, career goals, and learning preferences. Think of them as the ‘Netflix of professional development’—they recommend relevant courses, articles, videos, and other resources tailored to each individual. Unlike traditional learning systems, LXPs focus on learner-driven experiences, making it easier for employees to discover, engage with, and share content that supports their growth.
• Skills taxonomies
  A skills taxonomy is a structured framework that outlines the skills your organisation needs to succeed—typically grouped by role, department, or seniority level. It acts as a common language for identifying, assessing, and developing capabilities across the workforce. By mapping skills in this way, organisations can better align learning initiatives with business goals, identify skill gaps, and support more targeted talent development and workforce planning.
• Skills assessment tools
  These tools evaluate a person’s actual ability to perform a task—through simulations, coding challenges, case studies, or scenario-based questions. They’re especially useful for hiring and internal mobility.
• Workforce analytics platforms
  These platforms give you a bird’s-eye view of your organisation’s skills landscape. They help you identify gaps, forecast future needs, and make data-driven talent decisions.

The payoff

Companies embracing this approach are seeing:

• Faster hiring (because you’re not waiting for the “perfect” resume)
• More diverse teams (because you’re not filtering out non-traditional candidates)
• Higher retention (because people see a future with you)

How to get started

Shifting to a skills-first approach doesn’t require a complete overhaul overnight. In fact, the most successful organisations start by embedding small, strategic changes into their existing processes. Whether you're a large enterprise or a growing business, the key is to begin with clarity—understanding what skills matter most, where your gaps are, and how to build a culture that values learning and mobility.

Here are a few practical steps to get you moving:

1. Audit your roles: What skills really matter for success?
2. Map your workforce: What skills do your people already have?
3. Invest in learning: Create pathways for people to grow into new roles.
4. Rethink job ads: Focus on outcomes and capabilities, not credentials.
5. Start small: Pilot a skills-first approach in one team or department.

The shift toward skills-based talent strategies isn’t just a trend—it’s a meaningful evolution.

As organisations adapt to change and prepare for the future, focusing on skills offers a practical, people-first path forward. Whether you're just beginning or already on the journey, every step toward understanding and developing your workforce’s capabilities makes a difference. The tools are available, the mindset is evolving, and the opportunity is here—to build a more agile, inclusive, and future-ready organisation.

Further information

For assistance with your workplace matters, Members of Ai Group can contact us or call our Workplace Advice Line on 1300 55 66 77 for further information.