The Secret Is Out About Skills Based Hiring

A recent report from LinkedIn in partnership with the Organization for Economic Co-operation and Development (OECD) reinforces how skills‑first hiring can expand your talent pool while democratizing access to opportunity.

At its core, skills‑based hiring evaluates what a candidate can do now and their capacity to grow, not just past job titles or pedigree. While some roles will still require specific credentials, there’s increasing flexibility around what “experience” really means.

According to the LinkedIn report, in OECD countries, 14% of recruiter searches are now filtered by skills, which is over 7x the share of searches filtered by degree (under 2%). Globally, the average is about 13% of searches filtered by skill and 3% by degree.

One of the strong arguments for a skills‑first model is improved hiring quality: companies that use skills‑based searches most often are 12% more likely to make a “quality hire” than those using them least. (LinkedIn defines “quality hire” using three measures: demand for the hire, retention for at least one year, and mobility: whether that person moves to a second role within that same organization in the first year.)

Skills‑first hiring also helps attract in‑demand talent. Organizations with the most skill‑based searches are 33% more likely to hire workers who are in the top quartile of recruiter demand.

When it comes to retention, the stats are compelling: workers who make an internal move after two years with an organization have a 75% chance of staying, compared to 56% for those who haven’t moved. Also, companies that excel in internal mobility retain employees on average about 5.4 years, versus about 2.9 years for companies that struggle with internal mobility.

If enablement of skills and internal mobility are built in, employers can be more adaptive, have more satisfied staff, and noticeably better retention across the board.

To fully realize the benefits of a skills-first hiring strategy, partnering with an experienced executive search firm can be extra valuable. These firms (yes, like ours!) specialize in identifying high-potential candidates whose capabilities may not fit traditional molds but align well with the demands of modern roles. With the right partner, organizations can tap into broader talent networks, assess for transferable skills and make confident hiring decisions that support long-term growth and retention.

If you would like to discuss your hiring strategy or if you’re ready to recruit, get in touch to arrange a quick chat. Email Paul, Brent, Troy, or Tara, or give us a call at 519-673-3463.