The way businesses recruit is shifting, with employers moving away from the traditional reliance on degrees, giving way to a more agile approach of skills-based hiring. A practical approach that prioritises what candidates can do, over what they studied. For SME’s this could be a game changer in helping them have a more strategic response to talent shortages, rising recruitment costs, and the need for a more diverse workforce. 

Why the shift? 

In the tight labour market today, employers are struggling to find the right talent. According to LinkedIn’s Future of Recruiting 2024 report¹, 75% of recruiting professionals believe skills-based hiring will become the priority over the next 18 months. For SMEs, this presents a golden opportunity to tap into a broader talent pool, especially those who may lack degrees but possess the exact capabilities needed to thrive. 

SMEs often operate with leaner teams and tighter budgets. Hiring someone who can hit the ground running is critical. An approach of skills-based hiring has shown to reduce hiring costs by nearly 90% and speed up time to hire by over 91%². 

The message is clear: it’s no longer just about what’s on a CV – it’s about what candidates can do. 

What does this mean for SMEs  

1. Wider talent pool: Removing degree requirements means that SMEs can access candidates who are experienced and capable, who may have taken alternative routes such as apprenticeships, career changers, self-taught professions, and on-the-job experience. 

2. Improved retention: Employees who are hired for their skills are 98% more likely to stay and perform well, making this a crucial metric for SMEs where every hire counts. 

3. Faster recruitment: Focusing on practical skills helps streamline recruitment and identify the right fit quickly. With tools like skills assessments and AI-powered screening, SMEs can streamline hiring and reduce time to fill by up to 40%³. 

4. Improved diversity: Skills-based hiring helps eliminate biases tied to education and background, fostering a more inclusive workplace. 

Practical tips  

1. Revamp job descriptions: Ensure job descriptions reflect the skills and tasks involved, avoiding unnecessary degree requirements unless they’re truly essential. 

2. Use skills-based assessments: Consider tools or structured interviews that test real-world skills. Even a short task or scenario-based exercise can offer far more insight than a CV. 

3. Rethink how you screen applications: Instead of filtering out non-graduates, screen for experience, transferrable skills, and potential to grow. 

4. Train hiring manager: Equip the team to evaluate candidates based on competencies, not credentials, ensuring that everyone involved in recruitment understands the benefits and principles of this approach. 

At View HR, we help SMEs design recruitment processes that attract the right people, based on skills, values and potential. Whether you’re hiring your first employee or expanding a growing team, we can support you in making fair, practical and future-ready hiring decisions. 

Let’s talk. We’d love to help you build a workforce based on capability more smartly and equitably.