UK employers are changing how they approach hiring. The traditional focus on degrees and previous job titles is being replaced by a growing emphasis on practical ability and potential. This report outlines why that shift is happening, the benefits and challenges it presents, and how businesses can adapt. It also features examples from leading organisations that are already making the change.
Why the model is changing
Historically, recruitment in the UK has prioritised formal education and a linear career path. A candidate's degree or job title was often used as a shortcut to assess suitability. That model is now under pressure. Technological change, talent shortages, and a stronger focus on inclusion are challenging long-held assumptions.
The pace of change is so rapid that qualifications earned just a few years ago may already be outdated. According to Microsoft and LinkedIn’s 2024 Work Trend Index, 79 percent of leaders see AI as critical to future success, but 60 percent do not have a clear plan to deliver it. The gap between skills required and available talent is widening. As a result, organisations are beginning to look at hiring through a different lens, asking not where someone went to school, but whether they can do the job.
What is skill based hiring?
Skills based hiring is an approach that evaluates candidates based on their ability to perform real tasks. Instead of screening applicants by degrees or years of experience, employers assess them through practical exercises, structured interviews, or role specific evaluations.
The idea is simple: focus on capability, not credentials. It enables employers to identify individuals who may have gained skills through alternative routes such as apprenticeships, self-learning, or freelance work.
What are the benefits?
Organisations embracing this model are seeing clear advantages:
Access to more talent: LinkedIn Hiring Lab found that only 14 percent of UK job adverts now require a university degree, a major shift from previous years.
Better performance: Studies from Harvard Business School and the Burning Glass Institute show that candidates hired for their skills are more likely to succeed in the role.
Faster onboarding: Candidates assessed for specific tasks tend to get up to speed quickly and require less training.
Improved employer brand: Companies that focus on fairness and practical ability are becoming more attractive to top talent, particularly in competitive sectors.
Several UK businesses are already leading the way:
EY UK stopped using degree classifications as a screening tool for graduate roles in 2015, finding no link between academic grades and performance.
PwC UK removed A-level filters and introduced scenario based assessments to evaluate decision making and potential.
Clifford Chance launched CV-blind interviews to reduce bias and level the field.
John Lewis Partnership shared interview questions ahead of time and introduced task based assessments, helping candidates prepare and perform.
Barriers to change
Despite the clear benefits, several barriers to change still exist. One significant challenge is the cultural shift required, as hiring managers often need support to move away from familiar but outdated methods. Additionally, developing effective assessments that are valid, reliable, and tailored to specific roles demands considerable time and careful planning. Finally, cost and resource constraints can pose a hurdle, especially for smaller firms that may lack the necessary tools or capacity to fully redesign their recruitment processes without external assistance.
What comes next?
The World Economic Forum highlights adaptability, critical thinking, and lifelong learning as essential traits for the future workforce. These qualities are not always captured by qualifications but are often visible through skills based assessments.
In the AI sector, Oxford Internet Institute data shows that degree requirements have declined, falling from 36 percent in 2018 to 31 percent in 2024 for related job posts. As this trend spreads across sectors, a more agile, capability focused hiring model is likely to take hold.
By 2030, skills based hiring could become the default rather than the exception.
Next steps for employers
To make the shift successfully:
Review job descriptions to highlight essential tasks and key skills.
Use relevant assessments that reflect actual job demands.
Train interviewers to look for capability and potential.
Map internal skills to support progression and internal mobility.
Measure impact through retention, diversity and quality of hire metrics.
Is your company ready for skills-based hiring?
Hiring based on skills reflects a more modern, inclusive, and effective way to build teams. It allows employers to look beyond credentials, spot real potential, and keep pace with a fast-changing business environment. For UK organisations, the move toward this model is already underway. The question is not whether to adapt, but how quickly.
If you’re ready to take the next step in modernising your recruitment process, reach out to Marks Sattin for expert guidance and tailored solutions.
