In 2025, hiring based on skills rather than degrees is no longer a theory—it’s happening. More companies are rethinking how they define talent, and HR leaders are at the center of this shift.
 

A growing number of organizations—Walmart, IBM, and Accenture among them—have dropped degree requirements for many roles. Instead, they’re focusing on whether candidates can do the work, not where they went to school. This approach, known as skills-based hiring, opens the door for millions of workers who have the right capabilities but no formal degree.

In the U.S. alone, over 70 million adults fall into this category. Often referred to as STARs (Skilled Through Alternative Routes), these workers have gained experience through community college, training programs, military service, or on-the-job learning. Yet many of them have been overlooked simply because they didn’t follow a traditional education path.

That’s starting to change. According to a 2025 McKinsey report, companies using skills-based hiring are twice as likely to find better-fit candidates and are seeing improvements in retention and time-to-fill. Another report from TestGorilla found that 78% of employers who adopted this model cut hiring costs while increasing diversity.

The reasons for this shift are practical. Roles are evolving quickly, and many job titles don’t reflect what’s actually required. By focusing on competencies instead of credentials, employers can better match people to jobs and prepare them for growth.

Still, there’s work to be done. Most job descriptions need to be rewritten. Hiring managers need training. HR teams must build frameworks to define, assess, and track skills—not just roles. These steps take time, but they’re essential for making the shift stick.

For HR leaders, the question is not if this model will become standard—it’s how fast they can adapt. The demand for new skills is growing, and the old ways of hiring aren’t keeping up. Moving to a skills-first approach is not just about inclusion or cost savings. It’s about building a workforce that can grow with the business. As we look ahead, the most competitive organizations will be those that can see beyond the resume and recognize potential where others don’t.

In this edition, we look at how hiring is changing—moving away from degrees and job titles toward real capabilities. Experts analyze what it means to hire for skills in 2025—and why it matters now.

Happy Reading!

 
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