The State of Skills-Based Hiring 2022

Explore TestGorilla’s annual thought-leadership report

Extraordinary outcomes for companies

Our data shows that companies using skills-based hiring are experiencing dramatic improvements in performance across five key metrics:

89.8%

of organizations saw a reduction in cost-to-hire

91.4%

of organizations saw a reduction in time-to-hire

92.5%

of organizations saw a reduction in mis-hires

91.2%

of organizations saw an increase in retention

91.1%

of organizations saw an increase in diversity

We surveyed

2,736

employers

2,736

employees

40+

industries

Our data shows that companies using skills-based hiring are experiencing dramatic improvements in performance across five key metrics.

Have you used skill tests or assignments in your hiring process in the last 12 months?

What is skills-based hiring?

Skills-based hiring is a recruitment methodology whereby job candidates are hired for open roles based on quantifiable skills, rather than using subjective methods, such as resumes.

Attracting and retaining world-class talent

People who are recruited using skills-based hiring are happier in their job roles than those who are not. 72.1% of those hired using skills-based hiring were either happy or very happy in their current role, compared to 62.9% of those recruited via other methods.

People who are recruited via skills-based hiring stay longer in their roles. Only 3.2% of employees recruited using skills-based hiring, plan to leave their roles in the next 12 months, compared with 7.3% of employees who were not recruited via skills-based hiring.

72.1%

of people hired via skills-based hiring report being happy in their role

3.2%

of people hired via skills-based hiring plan to leave their role within 12 months

Our partners

Barzaarvoice

Emma McFetridge

Talent acquisition partner

CapitalT

Eva De Mol

Co-founder

Emaho

Paul Musters

Founder

Options Executive Search

Achyut Menon

Managing director

Recruiter University

Jacco Valkenburg

Trainer employer branding and recruitment

Recruiting Brainfood

Hung Lee

Curator

Sintory Beverages and Food Nigeria

Segun Mustapha

People and culture officer

Forta

Nicole Roberts

Senior vice-president of people

The Recruiting Future Podcast

Matt Alder

Producer and host

TalentMapper

Marcel Rietveld

Chief executive and co-founder

Marketing Sumo

Adrian Tan

Chief marketing strategist

Klaviyo

Paul Abercrombie

Director of talent (EMEA)

Ellena Bartolini

Kuba Garstka

Rashid Lansah

Sara Sremcevic-Brown

The future of skills-based hiring

Skills-based hiring is a growing trend that shows no signs of abating, with 53.4% of respondents believing it will be the dominant hiring method in the future. Stay ahead of the curve by reading all the insights from our annual report.