Skills Over Titles: The Big Shift Highlighted at the SHRM Talent Summit

The world of work is changing, and so is how we hire, pay, and evaluate employees. The relations between employers and employees have also shifted dramatically, and organizations are adapting to rapid technological advancements and workforce demands. Given the current job market landscape, employers prioritize skill-based hiring over degrees and job titles. Organizations struggle to hire and retain the right talent, and this shift has also been accelerated to fill the open positions. 

At the SHL Roundtable during the SHRM Talent Visionary Summit25, experts discussed shifting from traditional job titles to skill-based approaches. While this transition holds much promise, it also comes with its challenges. Here's a breakdown of the key insights from the discussion and why they matter for organizations today.

Why Skills Matter More Than Titles

Many organizations face the challenge of inconsistent skill definitions across departments. Building a strong skills framework becomes nearly impossible without clear and unified standards. Moving to skill-based pay and evaluation is a solution, but it requires a mindset shift—for both employees and leadership. Change is hard, and resistance to giving up familiar structures like job titles is one of the biggest hurdles.

The key message? Skills are the new currency of the workplace. Companies can create fairer systems and make better hiring and evaluation decisions by focusing on skills instead of roles.

Breaking Free from Degree-Based Hiring

Hiring decisions have been tied to degrees for years, but times are changing. Companies are now using practical tools like:

• Assessments to measure a candidate’s real-world abilities.

• Business case simulations to evaluate how candidates perform in specific situations.

This helps organizations move away from relying on degrees alone and focus on what a candidate can do.

Getting Clients on Board

Even with a strong internal skills-based model, its success depends on how clients view it. Businesses need to ensure that their clients:

• Understand the value of specific skills.

• Are willing to pay for those skills.

Aligning business and client priorities is key to making the shift to a skills-focused system truly work.

What Skills Are in Demand?

Many companies are rethinking their priorities and placing problem-solving at the top of the list. The reasoning is simple: technical skills can be taught over time, but the ability to solve problemsis a game-changer. Soft skills like communication and critical-thinking skills have always been crucial for any organizational strategy. Other key takeaways include:

• Adaptable Skills: Instead of rigid skill frameworks, organizations should break skills into flexible tasks that can evolve with the changing work demands.

• Three Areas of Expertise: Employees should focus on:

  1. Skills needed for their current job.

  2. Skills they’ll need in the near future.

  3. Skills that will shape their long-term potential.

Preparing the Next Generation of Talent

Many organizations are working with universities to ensure students are equipped to enter the workforce. Hands-on skills are highly in demand today to tackle the real-world challenges. By teaching in-demand skills early, companies can build a stronger talent pipeline. This collaboration ensures that students don’t just enter the job market with degrees—they enter with fundamental, job-ready skills.

The Long-Term Success Formula

Transitioning to a skill-driven model doesn’t happen overnight. To make it work, companies need:

• Executive Alignment: Leadership must champion and support this shift at every level.

• Sustained Investment: Building a skill-based system requires time, effort, and resources, but the long-term benefits are worth it.

Conclusion

The Roundtable discussion focused on skills as the future of work. While the journey to skill-based hiring, pay, and evaluation has challenges, the benefits are stronger—better hiring decisions, a more agile workforce, and better business outcomes.

Organizations can successfully shift from traditional roles to skill-driven systems, ensuring they stay competitive in a rapidly changing world. Are you ready to embrace the future of work?