Why is Skills-Based Hiring Stalling?

Despite more than eight out of 10 hiring stakeholders saying that skills are integral to their hiring process, half of employers are reporting a lack of consistency to best evaluate candidates’ skills, says the University of Phoenix Career Institute. 

The research surveyed both people going through the hiring process and those who were employed full time and had influence over hiring decisions. 

It finds that 57% of hiring stakeholders feel they need better training to evaluate candidates skills, which is becoming all the more critical as job applications surge. 

Applications rose 31% in 2025, while job openings grew just 7% – with candidates who use AI submitting 50% more applications than those who do not, according to Forbes. 

Alison Lands, VP of Employer Mobilisation at Jobs for the Future, says of the research: “Skills-based hiring can be a powerful driver of economic mobility and can help employers access overlooked talent – but only if intent and infrastructure are aligned.

 "That means measuring and hiring for what predicts success on the job, supported by clear standards and consistent evaluation.”

Identifying candidate skills

According to the University of Phoenix, 24% of non-HR hiring stakeholders are receiving no training before they interview job candidates, despite many owning the final hiring call. 

This lack of training can make it challenging for those involved in the hiring process to effectively identify candidate skills – with nearly half of hiring stakeholders saying that prospective employees may miss out on opportunities because they didn’t effectively demonstrate their skills in the hiring process. 

Candidates who have gained skills outside of the corporate environment are more likely to miss out on opportunities – such as military personnel transitioning into civilian life. 

Workday – which announced the launch of its military skills mapper hiring tool in February – has said that the skills and capabilities veterans build up do not always translate into the language used on job descriptions. 

This can make it difficult for hiring managers to recognise potential candidates, with research from Taylor & Francis group finding that 62% of employers believe veterans need more education and training to qualify them for civilian roles. 

Joe Wilson, Global Chief Technology Officer at Workday, who also serves in the US Air Force Reserve, says of the tool: “Veterans bring hard-earned skills – leadership, adaptability and teamwork – that don't always show up clearly in traditional hiring processes. 

“With the Military Skills Mapper, we're using Workday innovation to make those capabilities unmistakably visible to the organisations that need them most.”

The AI hiring bottleneck

As AI increases the number of applications per role, hiring teams are feeling more pressure, says the University of Phoenix. 

The job market as a whole is growing more competitive, with 79% of recruiters sharing in a LinkedIn survey that they believe finding skilled talent is becoming more challenging. 

Kelly Jones, Chief People Officer at Cisco, agrees with these findings – telling Business Insider that “the qualified pool is so small, and the demand is so high.” 

Cisco itself focuses on hiring for skills, with recruiters specialising in specific business functions to identify unique skill sets, and candidates being asked to complete tests to demonstrate hands on abilities. 

Kelly says: “We want to know, not only have you done these things, but are you intellectually curious? Are you intellectually and emotionally agile? Are you someone who brings your team along with you?”

The company has increased its digital capabilities in its hiring process, which it says has contributed to a 35% reduction in hiring costs. 

The University of Phoenix recommends a similar approach, telling HR leaders to “empower” hiring stakeholders with new tools to transform the talent acquisition process.