Beyond the degree: The rise of skills-based hiring

by Hannah Mason, Brightmine HR Data Insights Analyst

As skills shortages persist and roles evolve, employers are rethinking what “qualified” really means. The latest Brightmine research examines the rise of skills-based hiring and how organisations are putting it into practice.

Rigid qualification requirements were once seen as a way for organisations to raise standards and secure the best talent. However, today that thinking is beginning to look outdated. While some roles will always require specific technical or professional qualifications, for many others, a university degree is no longer the differentiator it once was. This is particularly the case where the required skills can be developed outside the classroom.

This shift has been influenced in part by the growing participation in higher education. In the past, postgraduate study was often viewed as a marker of exceptional capability or commitment, but that idea has weakened as participation has grown. Between the 2019/20 and 2024/25 academic years, the number of people enrolled in postgraduate study increased by 24%, alongside a 9.5% rise in undergraduate enrolments, according to HESA. As higher levels of qualification become more common, they tend to offer less insight into an individual’s readiness for work. The more time spent in education can also mean less time building practical experience, particularly for younger job seekers. This can make skills and experience a more meaningful way for employers to identify potential.

In this piece, we will explore skills-based hiring approaches being taken on at UK organisations, drawing on insights from the latest annual Brightmine recruitment research.

Skills shortages are reshaping recruitment strategies

Skills shortages are a real and persistent challenge, having featured as a top recruitment issue in the past three annual Brightmine recruitment surveys. Traditional hiring approaches are not always well placed to resolve this issue, particularly as we are in a time of rapid technological change, with AI impacting on the skills that some organisations need.

Our 2026 research found that almost three-quarters of organisations (70.7%) have found some skills hard to recruit for in the past 12 months. Technological and digital skills, alongside operational skills, were the two most commonly reported skills that had been hard to recruit for, highlighting the pressure employers are under to secure employees with skills that are evolving rapidly.

Chart 1: Skills that have been hard to recruit for

Despite the skills shortages faced by the majority of organisations, many are continuing to recruit, while around half are upskilling or reskilling employees to help fill this skills gap, and just under half are resorting to outsourcing or using contingent workers.

Upskilling or reskilling employees can be an effective way to address skills shortages by developing the existing workforce. It can help to build a more adaptable workforce by expanding and developing individuals’ skills. The benefits of upskilling and reskilling go beyond filling skills gaps, as they also provide an opportunity to enhance employee experience and support retention, by offering clear opportunities for development and demonstrating to employees that the organisation is invested in their progression.

Chart 2: How organisations are addressing skills shortages

Momentum is building behind skills-based hiring

Alongside investment in employee development, a growing number of organisations are rethinking how they recruit. One-third (33.3%) of organisations indicated that in the last couple of years they have increased the use of skills-based hiring, while one in 20 are looking to introduce it. Skills-based recruitment focuses on assessing candidates against role-specific skills rather than educational background, particularly for roles that would traditionally have required a degree or other formal qualifications.

Private-sector services organisations were most likely to have indicated that the use of skills-based hiring has increased, as indicated by around half (45.5%). Just one in 10 organisations do not currently operate skills-based hiring and have no plans to introduce it, suggesting that momentum is building for many organisations.

Chart 3: Change in use of skills-based hiring in the last couple of years

Challenging old habits: Implementing skills-based hiring

However, the shift has not been without its challenges, with HR professionals frequently pointing to difficulties in securing buy-in from colleagues involved in the recruitment process. One HR professional shared that “internal buy-in is tricky, as we have a lot of managers stuck in their ways”, while another described that they’ve experienced “slow progress purely due to needing to unpick historic mind-sets and processes”. This highlights how skills-based hiring can challenge established recruitment practices, and how difficult it can be for organisations to move away from standards that were once viewed as essential.

Managers can be stuck in their ways and can base their hiring on their own or past experiences. We are educating managers around avoiding bias in recruitment and are also developing standardised question packs and scoring around skills and alignment with the role.

Leadership backing is seen as critical in overcoming resistance, with one organisation noting that “leadership support, particularly in directorates where capability development is a priority, has helped reinforce the value of hiring for future skills rather than purely past experience”.

Other HR professionals were clear about the benefits, with one sharing that “it has enriched the pool of candidates”, and one childcare organisation stating, “The experience has been very positive. What is written on someone’s CV compared to how they interact with children is completely different and skills-based hiring shows whether they are compatible with our business.”

Finally, one HR professional highlighted the importance of considering both technical skills and soft skills, recognising that an effective skills-based approach often requires balancing the two when assessing candidates:

While prioritising practical expertise and decision making has improved the quality of new hires, the ‘soft skill gap’ (finding candidates who pair deep technical proficiency with strong communication), remains a significant challenge.