Employers Expand Skills-Based Hiring as Degree Requirements Continue to Decline

Thursday, July 16, 2026

UK employers are increasingly moving towards skills-based recruitment, with more organisations focusing on candidates' abilities and experience rather than degree classifications when making hiring decisions.

The trend, highlighted in recent research from LinkedIn, the Chartered Institute of Personnel and Development (CIPD) and the Institute of Student Employers (ISE), reflects changing workforce needs as businesses respond to ongoing skills shortages and evolving job requirements.

Recruiters say employers are placing greater value on transferable skills such as communication, problem-solving, teamwork and adaptability alongside technical capability. The approach is helping organisations identify candidates who may previously have been overlooked through traditional recruitment methods.

Skills-based hiring has gained momentum across a range of sectors including technology, financial services, engineering and professional services, where employers are finding that practical experience and demonstrated capability can be stronger indicators of future performance than academic qualifications alone.

Many organisations have reviewed job descriptions over the past two years, removing unnecessary qualification requirements and placing greater emphasis on the skills needed to perform the role. Recruiters say this has helped widen applicant pools while supporting more inclusive recruitment practices.

The approach is also influencing graduate recruitment. While degrees remain an important requirement for many professions, employers are increasingly looking beyond academic results when assessing early careers candidates. Internship experience, voluntary work, part-time employment and involvement in student societies are frequently viewed as evidence of workplace readiness.

According to the CIPD, employers continue to face recruitment difficulties in several sectors despite receiving large numbers of applications. Skills shortages remain particularly acute in digital technology, engineering, healthcare and construction, encouraging businesses to rethink traditional hiring practices.

Technology is also supporting the shift. Recruitment platforms increasingly allow employers to search for candidates based on verified skills, certifications and practical experience rather than relying solely on formal qualifications or previous job titles.

Recruitment professionals believe skills-based hiring can improve workforce diversity by opening opportunities to candidates from a wider range of educational and socioeconomic backgrounds. Removing unnecessary barriers can help employers access talent that may otherwise have been excluded from recruitment processes.

However, experts caution that successful implementation requires robust assessment methods. Structured interviews, work-based assessments and job simulations are becoming increasingly important in ensuring candidates are evaluated fairly and consistently.

The trend is expected to continue as organisations invest in workforce development and lifelong learning. Many employers are expanding internal training programmes, recognising that employees can develop new technical skills throughout their careers while bringing valuable transferable skills into the workplace.

As competition for skilled workers continues, recruitment specialists believe organisations that focus on capability, potential and continuous development will be better placed to attract and retain talent in an increasingly competitive labour market.


Sources

  • Chartered Institute of Personnel and Development (CIPD)
  • LinkedIn – Work Change Report
  • Institute of Student Employers (ISE)
  • World Economic Forum – Future of Jobs Report 2025