Australian tech firms shift to skills-based hiring practices
SYDNEY, AUSTRALIA — Australian tech companies are shifting away from traditional educational requirements, focusing instead on practical skills to diversify their workforce.
Leading tech firms like Canva, Culture Amp, and WiseTech Global are at the forefront of this change. These companies have removed educational requirements from most job postings, instead focusing on candidates’ practical skills and experiences.
Justin Angsuwat, Head of HR at Culture Amp, emphasized that “a degree is the weakest predictor of the skills a person has.”
Angelina McMenamin, Head of Talent at WiseTech Global, stated, “This skills-based recruitment approach helps us to create diverse teams to better solve problems.”
McMenamin highlighted the company’s “human-centric approach,” which values individual potential for long-term success over past titles or education alone.
“We believe their work ethic, problem-solving style, and learning agility, are stronger indicators of future contributions than past titles or education alone,” she added.
Addressing the talent shortage and diversity gap
The move towards skills-based hiring comes as Australia’s tech industry faces a significant talent crunch. Nikkei Asia reported that the sector employs 935,000 people as of May 2023, while projections indicate a need for 1.3 million workers by 2030.
Moreover, this approach aims to improve gender diversity in the tech workforce. Currently, women make up only 26% of Australia’s tech workforce, significantly lower than the 48% average across all industries.
By focusing on practical abilities rather than formal qualifications, companies hope to tap into a broader talent pool and create more diverse, innovative workforces capable of meeting the sector’s future challenges.
Apprenticeships, scholarships carry more weight
In the United States, the Biden administration is overhauling hiring for nearly 100,000 federal IT jobs, shifting to skills-based criteria over traditional college degree requirements.
By summer 2025, the federal government will transition its Information Technology Management series (2210 series) to skills-based hiring principles and practices. The 2210 series accounts for most federal IT positions, which typically mandate rigorous college degrees in fields like computer science, engineering, and statistics.
However, under the new skills-based model, a four-year degree will no longer be a strict requirement where appropriate. Instead, qualifications like apprenticeships, scholarships, and training programs will carry more weight.
