51 key skills-based hiring statistics

Employers and skills-based hiring statistics

In 2024, the majority of employers have adopted some form of skills-based hiring. They perceive it as an effective hiring strategy, and they’re seeing measurable benefits. Here are 18 statistics on employer adoption, attitudes to, and benefits of skills-based hiring

Employer adoption of skills-based hiring

1. Globally, 81% of companies are using skills-based hiring in 2024.

2. This is compared to 73% in 2023 and 56% in 2022.

3. 59% of those employers started using skills-based hiring in the last two years.

4. 49% are using cognitive ability tests

5. 49% are using role-specific tests

6. 38% are using work sample assignments

7. 42% are using preference tests

8. 60% of companies expect their budget for skills-based hiring to increase in the next 12 months, and 35% say it will stay the same.

Employer attitudes to skills-based hiring

1. 98% of employers believe skills-based hiring is more effective at identifying talented candidates than resumes

2. 94% of employers believe that skills-based hiring is more predictive of on-the-job success than resumes

3. 88% of employers believe that employees hired via skills-based hiring stay longer in their roles

4. 56% said skills-based hiring helps them verify candidates' soft skills

5. 54% said it helps them verify hard skills

6. 53% said it helps them verify cognitive abilities

Benefits of skills-based hiring for employers

1. 90% of employers using skills-based hiring reduced mis-hires

2. 91% of employers using skills-based hiring boosted retention

3. 81% of employers using skills-based hiring reduced their total time-to-hire

4. 78% of employers using skills-based hiring reduced their total hiring costs

5. 90% of employers using skills-based hiring improved workplace diversity

Skills-based hiring adoption rates statistics

Let’s dive a little deeper into the data on skills-based hiring adoption rates. Below are 10 statistics about skills-based hiring adoption rates divided by organization type, industry, and region.

By organization type

1. 75% of remote organizations are using skills-based hiring, a decrease of 20% from last year

2. 85% of hybrid organizations are using skills-based hiring, an increase of 21% from last year

3. 70% of in-person organizations are using skills-based hiring, an increase of 13% from last year

4. Companies with between 501 and 1000 employees are using skills-based hiring the most in 2024 (88%)

By industry

1. The industries with the highest adoption rates of skills-based hiring are marketing (95%), scientific and technical services (89%), and construction (89%)

2. The industries with the lowest adoption rates are hotel and foods services (54%), wholesale (56%), and government and public institutions (61%)

By region

1. 87% of US companies are using skills-based hiring, compared to 71% in 2023

2. 80% of Canadian companies are using skills-based hiring, compared to 74% in 2023

3. 84% of UK companies are using skills-based hiring, compared to 75% in 2023

4. 94% of Latin American companies are using skills-based hiring, compared to 72% in 2023

5. 91% of Australian companies are using skills-based hiring in 2024, compared to 90% in 2023

6. 67% of French companies are using skills-based hiring in 2024

7. 86% of Spanish companies are using skills-based hiring in 2024

Employees and skills-based hiring statistics

Employees are incredibly supportive of the adoption of skills-based hiring practices; they perceive significant benefits and want to see adoption increase. Read key stats below!

Employee attitudes to skills-based hiring

1. 90% of candidates agree that they’re more likely to secure their dream job with skills-based hiring

2. 81% of employees say they have gained access to new employment opportunities through skills-based hiring. This is compared to 66% in 2023.

3. 68% of employees say they prefer hiring processes that include skills-based assessments. This is compared to 56% in 2023.

4. 15% prefer a hiring process without skills-based assessments.

5. 56% of employees would like to see the adoption of skills-based hiring increase in the next 12 months

6. 84% of employees feel that skills-based assessments help to reduce unconscious and/or conscious bias during the hiring process. This is up from 69% last year.

7. 85% of employees agree that skills-based assessments help them better understand the specific job requirements of a role.

8. Of the 15% who prefer a hiring process that doesn't include skills-based assessments, 57% say it's because it makes them anxious, and 52% say it's because they end up taking tests that aren't relevant.

Skills-based hiring and diversity statistics

Diversity is an objective for the majority of employers and employees. Here are 5 statistics for skills-based hiring and diversity.

1. 85% of employers report that diversity is an objective for them in 2024 (no change from 2023).

2. 90% of employers using skills-based hiring reported an improvement in diversity, with 23% reporting a very large improvement

3. 31% of employees say they have experienced and been negatively impacted by conscious and unconscious bias during the hiring process (an increase from 21% in 2023)

4. 75% of Black employees gained access to employment opportunities through skills-based hiring in 2023

5. 73% of Asian and Arab employees gained access to employment opportunities through skills-based hiring in 2023

The future of skills-based hiring statistics

1. 60% of employers expect their budget for skills-based hiring to increase over the next 12 months. 35% say it will stay the same.

2. Only 5% of employers expect their skills-based hiring budget will decrease

3. 58% of employers say they will use skills-based hiring more than they did in the last 12 months

4. Only 8% of employers say they will use skills-based hiring less often

5. 68% of employees want to see the adoption of skills-based hiring methods increase in the next 12 months. This is up from 42% in 2023.

6. Only 7% of employees want to see skills-based hiring adoption decrease

For the rest of the story, read our report

So there you have it – all the skills-based hiring statistics you could possibly need. In case you do need more, check out our State of Skills-Based Hiring report for the rest of the skills-based hiring story. Alternatively, check out 17 essential resume statistics.