As of October 2023, only 61.4% of recent high school graduates ages 16-24 were enrolled in college, a drop of 4.5 percentage points from 2013, according to the U.S. Bureau of Labor Statistics (BLS). This shift signals many things, including a growing reliance on alternative education paths, such as trade programs and on-the-job learning. As fewer candidates hold traditional degrees, employers must adapt their hiring practices to focus on skills over credentials.
While the up-and-coming workforce is shifting its attention away from college, employers are finding themselves in a position where “degrees don’t always align with market needs,” SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, said in recent testimony before the House Education and Workforce Committee.
To keep up with these trends in both the talent and hiring markets, employers should look to skills-based hiring and tools such as blind evaluations and assessments to match qualified candidates with open roles.
Navigating Workforce Uncertainty with Skills-Based Hiring
Skills-based hiring can help employers navigate an unpredictable labor market and the growing emphasis on newer skills, such as AI implementation. The U.S. labor market remains unpredictable: 2.2 million jobs were added in 2024, yet unemployment still rose as high as 4.2% in the first half of the year. “The prime-age labor force participation growth has leveled off and looks dangerously close to reversing its multiyear increasing trend,” said Cory Stahle, an economist at the Indeed Hiring Lab.
Ongoing uncertainty about whether open positions will align with available talent highlights the need for more precise hiring practices to ensure employers find the right candidates for each role.
On top of the ebbs and flows of the talent market, new areas of expertise, such as artificial intelligence, might not be found on a typical resume but have vast potential for upskilling new hires. In fact, 39% of the core skills needed by workers will transform within the next five years, according to the World Economic Forum’s Future of Jobs Report 2025.
AI is a catalyst for this shift, but it’s unlikely to completely overtake human workers, as “uniquely human capabilities such as creative thinking, leadership, and social influence are becoming increasingly valuable,” SHRM Executive in Residence for AI + HI Nichol Bradford wrote. This means employers should not only identify candidates with relevant skills but also plan for upskilling across the organization.
Eliminating Bias Through Blind Evaluations
Combining skills-based hiring with tools such as blind evaluations and assessments allows employers to identify qualified candidates more effectively. This approach not only helps expand the talent pool but also ensures a fairer and more objective hiring process by focusing on abilities rather than biases.
While these tools can help employers reach their hiring goals, it’s important to distinguish what they can and cannot do.
Blind evaluations and assessments can help:
Support the overall goal of inclusion and diversity (I&D) that helps a company’s bottom line.
Ensure qualified candidates are reviewed during the hiring process.
Identify candidates’ specific experiences and skills in alignment with open roles.
Blind evaluations and assessments cannot:
Provide a one-size-fits-all solution to remove bias from hiring.
Ensure the diversity of the candidate pool.
Identify all relevant skills that candidates possess.
Implementing Skills-Based Hiring Practices
1. Identify roles eligible for skills-based hiring practices.
Review current roles to help identify the qualifications needed for each. Not all roles can be hired using skills-based practices. For example, a mechanical engineer will still require a degree. Keep in mind that it can take time to identify all roles that are eligible for this practice. For supplemental insurer Aflac, its approach started narrowly with the intention to expand in the future, after addressing any concerns.
2. Set up blind evaluation criteria.
Blind evaluations focus on removing, or blinding, certain information on a candidate’s resume and other application materials. While the number of hidden fields can vary, typically, hiring managers can remove names, demographic information, and school affiliation. This can help curb implicit bias early in the hiring process, ensuring that qualified candidates have a chance to be considered.
3. Review appropriate assessments.
Assessments during the hiring process can identify candidates with the skills needed to perform well in the role. Such skills are often unique to the specific role or sector of the organization. As with identifying eligible roles, it will take time to build appropriate evaluations for each role. Assessments should also go beyond identifying current skills to evaluate “the ability and motivation to learn,” said Whitney Martin, an employment assessment expert and president of ProActive Consulting in Louisville, Ky. Doing so will help employers upskill candidates to meet changing needs.
The Future of Hiring: Embracing Skills Over Credentials
As college enrollment declines and workforce demands shift, employers must rethink outdated hiring models. “In a knowledge-based economy, you lose if you don’t have the best talent,” Taylor stressed in his recent testimony.
Skills-based hiring, supported by blind evaluations and targeted assessments, offers a solution — ensuring that the right candidates, regardless of background, are matched to the right roles. Organizations that embrace this approach will be better positioned to navigate market uncertainty, leverage AI and other emerging skills, and build dynamic, future-ready teams.
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