Xeople Blog

Skills-Based Hiring vs Degree-Oriented Hiring: Rethinking Credentials in 2025

Written by Mahek Patalia | Oct 20, 2025 11:21:09 PM

 With technology, markets and job definitions evolving  at high speed, organisations must rethink how they identify talent. The debate between skills-based hiring and degree-oriented hiring is no longer academic; it is now a strategic imperative. 

Historically, degrees served as a safety net for recruiters, providing a quick way to feel confident about a candidate’s credibility. They were standardised, familiar and widely accepted. 

However, times have changed. Today’s generation has a different mindset, one that values mastering real-world skills over memorising theory. Summer jobs, casual work, side hustles, volunteering, networking and other extra-curricular experiences have become the new classrooms for developing practical, job-ready abilities. 

Let's find out how to strike the right balance between degrees and skills, and how platforms such as Entire OnHire (EOH) and Xeople Recruit (XR) make this shift practical for recruiters who want to future-proof their hiring strategies. 

 Why Skills-Based Hiring Is Especially Critical Today

As many skills-over-degrees studies and reports highlight, today’s workforce rewards people who can do, not just those who know. 

Recruitment expert Jon, featured in a Talent article, captured this well. He explained that when employers stop using degrees as a strict filter, they immediately open access to a broader and often more capable talent pool. This approach welcomes candidates from non-traditional backgrounds who bring technical ability, a growth mindset and real-world experience that modern industries demand. 

Jon also noted that focusing on skills rather than credentials helps reduce both time-to-hire and recruitment costs. Instead of spending weeks shortlisting applicants based purely on qualifications, recruiters can evaluate what truly matters: who can do the job. 

A similar point is made by Esther Abayomi, Global Talent Sourcer and Technical Talent Acquisition Researcher at AltexSoft. In an interview with Career Buddy, she recalled hiring a candidate who looked perfect on paper with strong academic credentials, yet struggled to deliver once in the role. Around the same time, she hired another candidate with no formal degree but years of hands-on experience, and that person excelled. She described it as a turning point and a reminder that the best hires are often those who show grit, adaptability, and practical experience that cannot be taught in a classroom. 

Supporting this shift, a 2024 global survey across Australia, the UK, the US, Europe and Latin America found that 81 per cent of employers now use skills-based hiring as part of their recruitment strategy, up from 57 per cent in 2022. The findings also highlighted a growing demand for human-centric soft skills such as communication, adaptability and problem-solving, which AI cannot replicate. 

The rise of skills-based hiring reflects a clear trend: the old markers of credibility no longer guarantee performance. Organisations that rely only on degrees risk overlooking talented, agile professionals who are ready to meet the demands of 2025 and beyond.

Balancing Skills and Degrees: A Hybrid Approach

A degree might open the door, but skills determine how far a candidate can go once they step inside. Recruiters can successfully combine traditional qualification checks with skills-based assessment by using a few practical methods:

  •  Use your ATS effectively. Begin by shortlisting candidates who meet basic qualification criteria, then apply a second filter for relevant skills. Modern applicant tracking systems such as XeopleRecruit (XR)  make it easy to tag, score and compare candidates based on both credentials and proven abilities.
  •  Request portfolios or project samples. Ask candidates to share work examples, designs or past projects that demonstrate real-world impact and skill depth. 
  • Ask questions based on their shared portfolios.  Use real-life situations to understand how candidates think and solve problems. Discuss their portfolio work to explore their approach.
  • Encourage outdoor meetings instead of closed-door interviews.  Organise informal off-site lunches or team sessions to observe how candidates communicate and collaborate. This helps assess soft skills and cultural fit beyond the resume.
  • Encourage lifelong learning. Recognise micro-credentials, certifications or self-paced online courses as evidence of curiosity and professional growth. 

Degrees still matter. They provide structure, discipline and a theoretical foundation that supports professional growth. However, formal education should complement skills rather than define them. Think of degrees as the blueprint and skills as the construction. Together, they build professionals who can both analyse and execute effectively. 

This balanced approach helps recruiters make informed and future-ready decisions.  

Turning Strategy into Action with Entire OnHire and Xeople Recruit (XR)

Adopting a skills-first hiring strategy is one thing, but putting it into practice is another. This is where Xeople’s platforms play an essential role. 

Entire OnHire (EOH) and XeopleRecruit (XR) are designed to make skills-based hiring not only achievable but seamless, particularly in industries where casual and contingent staffing are common. 

With Entire OnHire, employers can: 

  • Track and verify skills, qualifications and on-the-job performance in real time 
  • Identify top casual staff who are ready for full-time opportunities 
  • Maintain compliance and safety standards while building workforce flexibility 

Meanwhile, Xeople Recruit (XR) helps recruiters: 

  • Source candidates creating skills-based assessments 
  • Write stronger job descriptions that focus on competencies rather than credentials 
  • Enrich candidate profiles with verified skills, certifications and portfolios 
  • Optimise ATS screening to ensure fair, safe and efficient hiring processes 
  • Build tailored job workflows that define which combination of skills and qualifications each role requires 

The move towards skills-based hiring is not a passing trend. It is the next step in building diverse, capable, and future-ready workforces. Organisations that balance education with demonstrated ability attract adaptable, innovative and motivated professionals. 

With Xeople, this vision becomes reality. Recruit smarter, hire faster and build teams defined not by where they studied, but by what they can achieve. Explore our full range of products and its uses and find out how suitable it is for you. Get in touch with us to know more.