Skills-based hiring (finally, actually) works
Three years ago this was a slogan. Now there is data. What changed, what didn't, and how to retrofit your loop.
Marcus Chen, EngineeringMarch 11, 20267 min read
The skills-based-hiring movement spent three years as a deck and a slogan. Then a few large employers — IBM, Bank of America, Walmart — actually did it. The retention numbers are in, and they look better than the credential-based version they replaced.
What changed
- Tooling caught up. You can now structure a take-home or a work sample without spending a week building infrastructure.
- Reskilling programs proved out. The skill exists in candidates who don't have the credential.
- Compensation surveys started reporting on roles by required skill, not just job title.
How to retrofit your loop
- Strip degree requirements unless the role legally needs one.
- Add one structured skill assessment per role, max 60 minutes.
- Train interviewers to score the assessment, not the cover letter.
- Track outcomes. If the new approach doesn't hold up at the 6-month review, fix the assessment.
