Skills-based hiring may replace traditional resumes, experts say

NEW JERSEY, UNITED STATES — Skills-based hiring, which focuses on evaluating candidates based on competencies rather than degrees or job titles, is gaining popularity as companies aim to expand talent pools amid tight labor markets.

“More than 50% of hirers on LinkedIn now explicitly use skills data to fill their roles, and LinkedIn members have added more than 500 million skills to their profiles over the last 12 months,” Adam Hawkins, head of search and staffing for Europe, Middle East, and Africa (EMEA) and Latin America at LinkedIn, told CNBC Make It.

He added that companies use skills data to expand candidate pools up to 20 times versus conventional recruiting. A 2023 survey by LinkedIn also found that skills-based hiring could get 19x more workers.

Deloitte’s Dave Rizzo suggests resumes are now “digital dossiers” — portable profiles showcasing rich candidate details.

“The format of the traditional resume, which leads with a chronology of education, titles/job descriptions, and years of experience, and other resume ‘rules of the road’ are fading away,” he said.

ZipRecruiter’s Julia Pollak adds the “perfect” resume loses appeal as AI like ChatGPT democratizes flawless resumes.

“Your resume has to be perfect, but will no longer be sufficient,” she said.

Gamified assessments like HireVue’s video interviews and real-time problem solving now take priority over resumes in hiring.

Companies like LinkedIn and ZipRecruiter, both operating globally, are innovating as traditional resumes decline.