Difference Between Skill-Based Hiring & Degree-Based Hiring in IT Recruitment And Which One Should You Go For!

The differences between skill based hiring & degree based hiring in IT recruitment & which option is best for your business. Learn about the pros & cons of both approaches & make the right choice for your business.

Increasingly, employers need to ensure that they are hiring the right people with the right skills in today’s technology-driven world, and while degrees can provide solid theoretical knowledge, they do not necessarily reflect an individual’s practical skills. Although many highly skilled IT professionals may not have gone through traditional educational paths, they possess the skills and experience necessary to succeed in their jobs.

On the other hand, skill-based hiring focuses on assessing an individual’s skills and experience rather than just their educational qualifications. There is a high chance that some applicants may even exaggerate or fabricate their qualifications to get an interview if the Job Description focuses on the traditional requirements, which can lead to costly mistakes being made during recruitment that could have easily been avoided with more rigorous screening processes such as those used in skill-based hiring. In fact, simply by focusing on skills rather than degrees, businesses can broaden their pool of potential candidates — which can be extremely beneficial at a time when top talent is scarce, and identify “star” individuals who have the necessary skills but lack formal education.

Recruiting based on skills extends beyond the private sector. The state of Maryland, for instance, announced that nearly 50% of their jobs would not require four-year college degrees. – Forbes

The downfall in demand for traditional degree-based hiring has led to a surge in assessing applicants’ suitability for roles within organizations more effectively, as skill-based testing allows employers to see an individual’s abilities and make better decisions about who to hire, making sure that the right set of skills and knowledge are present, which leads to higher productivity levels and improved performance within organizations.

In this blog, we will explore skill-based and degree-based hiring in IT recruitment and which approach is best suited to you, and some tips that will help you successfully recruit skilled and seasoned IT resources. Whether you are a business looking to recruit IT talent or an individual seeking to enter the industry, this blog post will provide valuable insights into the difference between skill-based hiring and degree-based hiring and which one to go for.

Difference Between Skill based and Degree based Hiring

1. Pros of skill based hiring and degree based hiring

Skill Based Hiring	Degree Based Hiring
Identifies candidates with practical skills and experience relevant to the IT role.	May be suitable for entry-level roles where practical experience is less critical.
Enables faster onboarding and productivity, as candidates are already equipped with the required skills.	Simplifies initial screening by relying on academic degrees as a benchmark for qualifications.
Better aligns with the dynamic nature of the IT industry, where skills and certifications are critical.	Provides a traditional and familiar approach for evaluating candidates.

2. Cons of skill based and degree based hiring

Skill Based Hiring	Degree Based Hiring
May require additional effort and resources to conduct skill assessments and verify certifications.	May not reflect the fast-paced and constantly evolving nature of the IT industry.
May result in overlooking candidates with strong academic backgrounds but limited practical experience.	May exclude candidates with relevant skills and experience who lack formal degrees.
Could be subjective, as skill assessments and certifications may vary in quality and relevance.	May not promote diversity and inclusion, as it could limit the candidate pool based on formal education alone.

Why is Skill-based Hiring Important in IT Recruitment?

Technology advancements, changing trends, and emerging innovations require IT professionals to continuously update their skills and stay ahead of the curve. Traditional degree-based hiring may not effectively assess an individual’s ability to adapt and learn in such a rapidly changing landscape with new technologies, frameworks, and methodologies emerging regularly.

However, skill-based hiring has become increasingly important in IT as it focuses on a candidate’s practical abilities and experience, allowing companies to identify individuals with the right talent who can keep up with the industry’s pace.

The limitations of degree-based hiring in assessing practical skills and experience in IT Recruitment and The importance of hands-on experience and relevant certifications

While degree-based hiring can get you the “stamp of approval” in terms of theoretical and foundational knowledge, it may not always reflect on an individual’s practical skills, overall knowledge, and work experience(s) accurately. IT roles often require hands-on experience, on-the-job training, and specialized industry certifications that may not be acquired through formal education alone. Many highly skilled IT professionals may not have pursued traditional education paths but possess valuable skills and experience that make them suitable for specific roles.

By relying solely on degrees, companies may miss out on top talent who may not have formal education but possess relevant skills/experience because skill-based hiring takes into account an individual’s hands-on experience, relevant certifications, and practical abilities, providing a more comprehensive assessment of their suitability for a role – allowing companies to assess every candidate’s “actual” capabilities.

Conclusion – Skill Based Hiring & Degree Based Hiring – Which One to Choose?

Skill-based hiring has clearly become crucial in IT recruitment now, as 76% of employers employ some form of skills-based hiring to find new talent, with almost 55% using role-specific skills tests (according to TestGorilla’s The State of Skills-Based Hiring 2022 report).

Using this guide, employers can better identify candidates who have the skills and experience aligned with the role and the active nature of this industry. With a focus on hands-on experience, relevant certifications, and diverse talent, skill-based hiring can positively impact overall company performance.