A prediction: 2025 will be the year that organizations finally understand and embrace the notion that skills-based hiring is an essential tool in obtaining – and retaining – talent.
It came as no surprise to see the Korn Ferry Talent Acquisition Trends 2025 report, in which 24% of survey respondents named finding the right skills as a top challenge, second only to managing expectations for work-life balance in their early-career hires[1].
It’s a smart choice, too. Of those companies that have used skills-based hiring, 92% report that they’ve found higher-quality talent and 89% say that it’s a better predictor of job success. If that’s not enough to convince you, 82% say that skills-based hiring processes have streamlined their hiring process and made hiring much more efficient[2]. Not only that, organizations report a 107% improvement in placing the right people in the jobs.
Add to that better retention, increased morale, a reduction in hiring costs and a more positive workplace culture, and it becomes clear that skills-based hiring is destined to replace the traditional resume/education model of hiring.
So why the reluctance to adopt skills-based hiring? Put simply, too many organizations are unclear on how to define the critical skills needed for each position. Because we at WAHVE assess critical skills daily, we suggest using the following process:
Conduct a gap analysis. Where is your organization lacking in skills? What are the skills needed to get each team operating at their best capacity? Where is each team struggling? What skills could overcome those challenges?
Define the role. Go beyond the obvious. Yes, your claims adjustor will need to understand how to handle the claims process, but what else? Communication, collaboration with other departments, creative thinking and troubleshooting, and flexibility to each situation are all skills your next adjustor will need. That plus responsive customer communication and an understanding of who the stakeholders are and what their needs will be.
Revise your job approach. The listing should include all skills needed, not just the standard job listing fare that requires pedigree, training, and experience. Instead, focus on those skills you’ve identified as the most critical for the job. Look inside your organization, as well. It could be that your best fit is already working for you.
Create better hiring. Once you know the skills you have to employ, create assessment processes to better identify those skills during the hiring and interviewing process. Retool assessment tests to show where the talent is (and where it isn’t).
Build future success. The best talent is often right in front of you. Invest in training and improvement for your staff. Revamp your performance evaluations and management processes to focus on making sure your employees’ skills are always being improved upon. Arm them with the knowledge needed to excel.
As the corporate world moves toward putting skills at the forefront of hiring and employee retention, now is a great time to review your own organization to see where improvements could be made. Once you shift your focus to the thing that matters most – talent – you will build a strong, dynamic team that will deliver excellence.
[1] Talent Acquisition Trends 2025
[2] 65 key skills-based hiring statistics for 2025 | Testlify
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