If you’re interested in anything skills-based hiring-related – whether it’s rate of adoption, employee attitudes, or the benefits and impact of this hiring practice – then you’re in exactly the right place.
We collected responses from 3000 employers and employees to bring you The State of Skills-Based Hiring 2023; now, we’re bringing you 47 key skills-based hiring statistics.
In 2023, the majority of employers have adopted some form of skills-based hiring. They perceive it as an effective hiring strategy, and they’re seeing measurable benefits. Here are 18 statistics on employer adoption, attitudes to, and benefits of skills-based hiring.
Globally, 73% of companies are using skills-based hiring in 2023. 27% of them adopted skills-based hiring in the last 12 months
17% more employers are using skills-based hiring in 2023 than in 2022
The number of companies planning to increase their spend on skills-based hiring has increased from 39% in 2022 to 60% in 2023
92% of employers believe skills-based hiring is more effective at identifying talented candidates than resumes
89% of employers believe that skills-based hiring is more predictive of on-the-job success than resumes
82% of employers believe that employees hired via skills-based hiring stay longer in their roles
66% of employers said that skills-based tests let them see the potential of their candidates
82% of employers consider role-specific skills tests an effective hiring tool
66% of employers consider preference tests (such as personality tests) an effective hiring tool
Over 70% of employers consider all skills-based hiring tools to be effective
In 2023, 10% more employers believe in the value of work samples and assignments than in 2022
In 2023, 10% more employers vouch for the effectiveness of role-specific tests than in 2023
In 2023, 15% more employers recognize the effectiveness of cognitive tests than in 2022
88% of employers using skills-based hiring reduced mis-hires
89% of employers using skills-based hiring boosted retention
82% of employers using skills-based hiring reduced their total time-to-hire
74% of employers using skills-based hiring reduced their total hiring costs
84% of employers using skills-based hiring improved workplace diversity
Let’s dive a little deeper into the data on skills-based hiring adoption rates. Below are 10 statistics about skills-based hiring adoption rates divided by organization type, industry, and region.
78% of remote organizations are using skills-based hiring, an increase of 23% from last year
64% of hybrid organizations are using skills-based hiring, an increase of 26% from last year
57% of in-person organizations are using skills-based hiring, an increase of 8% from last year
The industries with the highest adoption rates of skills-based hiring are broadcasting & publishing, marketing, and real estate, rental & leasing
The industries with the lowest adoption rates are wholesale, education, and transportation
71% of US companies are using skills-based hiring in 2023, compared to 58% in 2022
74% of Canadian companies are using skills-based hiring in 2023, compared to 60% in 2022
75% of UK companies are using skills-based hiring in 2023, compared to 53% in 2022
72% of Latin American companies are using skills-based hiring
90% of Australian companies are using skills-based hiring in 2023, compared to 57% in 2022
Employees are incredibly supportive of the adoption of skills-based hiring practices; they perceive significant benefits and want to see adoption increase. Read 8 key stats below!
86% of candidates agree that they’re more likely to secure their dream job with skills-based hiring
66% of employees say they have gained access to new employment opportunities through skills-based hiring
56% of employees say they prefer hiring processes that include skills-based assessments
56% of employees would like to see the adoption of skills-based hiring increase in the next 12 months
69% of employees feel that skills-based assessments help to reduce unconscious and/or conscious bias during the hiring process
80% of employees agree that skills-based assessments help them better understand the specific job requirements of a role
10% more skills-based hires are very happy in their role (38%) than those who are hired without it (28%)
In data and IT, 38% more skills-based hires are very happy in their role (55%) than those hired without it (17%)
Diversity is an objective for the majority of employers and employees. Here are 5 statistics for skills-based hiring and diversity.
85% of employers report that diversity is an objective for them in 2023. This is up from 77% in 2022
84% of employers using skills-based hiring reported an improvement in diversity, with 23% reporting a very large improvement
21% of employees say they have experienced and been negatively impacted by conscious and unconscious bias during the hiring process
75% of Black employees gained access to employment opportunities through skills-based hiring
73% of Asian and Arab employees gained access to employment opportunities through skills-based hiring
60% of employers expect their budget for skills-based hiring to increase over the next 12 months
Only 4% of employers expect their skills-based hiring budget will decrease
58% of employers say they will use skills-based hiring more than they did in the last 12 months
Only 8% of employers say they will use skills-based hiring less often
42% of employees want to see the adoption of skills-based hiring methods increase in the next 12 months
Only 8% of employees want to see skills-based hiring adoption decrease
So there you have it – all the skills-based hiring statistics you could possibly need. In case you do need more, check out our State of Skills-Based Hiring report for the rest of the skills-based hiring story. Alternatively, check out 17 essential resume statistics.
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