The Great Disconnect: skills-first solutions for smarter recruitment 

Key takeaways

• The majority of jobseekers and hiring managers agree that skills are more important than experience, but many employers are not taking the key steps to implement skills-first hiring.
• Jobseekers can improve their recruitment experience by taking a more ‘skills-first’ approach to their CVs and applications. 
• Embrace AI to help match candidates with roles based on skills. 

By Indeed Editorial Team

If there were a candidate with a university degree but no relevant experience, and a candidate with no degree but plenty of hands-on experience, who would you choose? 

The majority of jobseekers (70%) and hiring managers (62%) agree on choosing the latter, according to Indeed’s recently released Smarter Hiring report.

That’s what skills-first hiring is – hiring the person who can do the job, not limiting the search to those who tick a list of boxes. Skills-first hiring, also known as skills-based hiring, can look different depending on the organisation, but it typically means prizing skills over more traditional indicators like educational requirements or years of experience.

As we explored in Part 3 of our Great Disconnect series, recruitment is getting harder for candidates and employers alike. But, based on insights in the Smarter Hiring report, focusing on skills can reduce the ambiguity that often muddles the recruitment process. This shift can help employers write better job descriptions, screen candidates faster and make better recruitment decisions.

‘We’re constantly coaching jobseekers that if you claim you’ve got a skill, always be prepared with an example. Because if you don’t have an example, you’re just offering an opinion.’

-Matt Berndt, Indeed Job Search Academy

‘Many employers have a habit of falling back on known qualifications – where they got their degree, what specific degree they have – without really looking at the tangible skills that are needed to do the job,’ says Matt Berndt, who leads the Indeed Job Search Academy.

A skills-first hiring approach could bridge some of the gaps between jobseekers and employers. However, 55% of employers say that a lack of understanding of skills-first hiring is a barrier to implementing it. 

Let’s explore what skills-first hiring means for employers and jobseekers.

This is the fourth in a series of Lead with Indeed articles about ‘The Great Disconnect’, which explores the growing chasm between what jobseekers need and what employers offer. For more details, see: 

The Great Disconnect: closing the gap between jobseekers and employers

The Great Disconnect: what jobseekers want vs what employers offer

The Great Disconnect: overlooked talent, overwhelmed employers

Four skills-first strategies to bridge hiring disconnects

1. Define which skills matter most for the role

For employers: identify the capabilities you’re looking for so the right candidates can find you. 

Start by defining the core skills necessary for the job. Instead of using traditional metrics, create a list of essential skills required for each role and use these to craft job descriptions. For example, rather than asking for a degree in computer science, specify that proficiency in Python coding is necessary.

‘When employers take the time to really define the skills required for the role and adjust their processes accordingly, it leads to better matches,’ says Jenna LaBella, Indeed VP of Client Success. 

For jobseekers: take a skills-first approach to job applications.

Jobseekers often fail to effectively communicate their relevant skills. Preparing a skills inventory that highlights core competencies and relevant experience can help. Using specific examples to illustrate how they’ve successfully applied these skills in the past adds impact. A well-crafted CV tells a clear, compelling story. 

‘When jobseekers effectively showcase their skills – whether it’s through certifications or during the application and interview process – it creates more meaningful connections,’ LaBella says.

2. Use behavioural interviewing to ask the right questions and give the right answers

For employers: adopt a behaviour-based interview approach.

Ask interview questions that require candidates to give concrete examples of how they’ve used their skills in previous roles so you can learn from their past performance to assess future capabilities. Instead of asking, ‘Do you have experience in project management?’ ask, ‘Can you share a specific project where you led a team and what the outcomes were?’

For jobseekers: focus on illustrating skills through relatable, quantifiable examples. 

Jobseekers benefit from developing a repertoire of success stories that demonstrate their skills in action. ‘We’re constantly coaching jobseekers that if you claim you’ve got a skill, always be prepared with an example,’ says Berndt. ‘Because if you don’t have an example, you’re just offering an opinion.’

3. Prioritise communication

For employers: maintain clear communication throughout the recruitment process.

Keep candidates informed by sharing timelines and ensuring that candidates receive timely updates. Use automated systems to acknowledge applications as they come in.

For jobseekers: be proactive.

Asking key questions to clarify the recruitment process helps jobseekers stay informed and better prepared. ‘I tell jobseekers never to leave an interview without asking when they can expect to hear back and what the next steps are,’ Berndt says. ‘And on the other side, I tell recruiters that those are the two questions candidates should never have to ask.’

4. Embrace technology to support skills-first hiring 

For employers: AI-powered tools can help.

AI can help streamline everything from writing clear job descriptions to sourcing qualified talent faster. But only 36% of employers use AI in their recruitment processes. Once employers have identified the skills required for the job, AI-powered job descriptions and matching tools can simplify the search by finding candidates based on skills rather than less relevant indicators. 

‘On the employer side, it helps to automate the stuff that ought to be automated, so that humans can focus on the human elements of recruitment, because the human element is never going away,’ Berndt says.

For jobseekers: leverage technology to help demonstrate skills and streamline job searches.

Jobseekers can use online platforms and AI tools to create skills-first CVs and to research companies, job roles and interview strategies tailored to their skills. ‘AI gives both candidates and employers the opportunity to be more efficient in their search,’ Berndt says. 

Indeed’s profile tools help jobseekers clearly showcase their skills, non-degree credentials, certifications and other qualifications, enabling its matching AI technology to connect them with roles that fit their capabilities. Additional AI tools assist in crafting tailored profile summaries and accomplishments for specific roles. 

Indeed is also developing new solutions that will coach jobseekers on how to present their skills more effectively (for example, listing non-degree credentials in the education section).

The power of human-centred recruitment

Employers who take a skills-first approach and embrace AI tools to support their recruitment strategy will fill roles faster and find better matches.

And for jobseekers, a smoother, more transparent process means less stress, more clarity and a better chance to find roles that align with their strengths. The end result is that those employees are more likely to stay, and businesses can gain a reputation as a great place to work. 

Recruitment is not only about getting the job done. It’s about creating a better experience for jobseekers and employers alike. 

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Further reading:

A beginner’s guide to skills-first hiring

Accenture thrives thanks to skills-first hiring

AI has the power to unlock skills-first hiring

Indeed resources that can help close the gap by powering connections between jobseekers and employers:

Invite to apply, which sends AI-based job recommendations to jobseekers based on their CVs, Indeed profiles and other qualifications. 

Indeed’s AI Job Description Generator, which leverages OpenAI’s GPT to create the core job description. Then, paired with Indeed’s machine learning expertise and taxonomy of millions of job descriptions, Indeed’s tool adds specific phrases and details that can help further tailor the job description to the candidates you want to attract. 

Released in April 2024, Indeed Smart Sourcing enables employers to instantly match and efficiently connect with active candidates on Indeed using AI instead of waiting for candidates to apply. 

At FutureWorks 2024, Indeed CEO Chris Hyams announced an upcoming AI-powered product from Indeed that will provide jobseekers with the resources to develop a career path and help employers fill talent gaps. Stay tuned for more details in the near future.