Companies are rethinking how they evaluate talent. Increasingly, employers are recognising that skills and practical experience can outweigh degrees when it comes to finding the right fit for open roles. But making the shift to skills-based hiring is not as easy as flipping a switch. It is especially true for organisations entrenched in traditional hiring models.
To support that transition, the SHRM Foundation, the nonprofit arm of the Society for Human Resource Management based in Alexandria, Virginia, has introduced a new initiative. It is called the Center for a Skills First Future. This free online resource hub is designed to help companies move away from degree-based hiring. Instead, the focus should be on evaluating candidates based on skills, competencies, and real-world experience.
“It’s everything from soup to nuts,” said Wendi Safstrom, president of the SHRM Foundation. “The platform offers practical tools, planning resources, and playbooks. Besides that, there are opportunities to connect with other professionals navigating the same challenges. It is about creating a real support system for employers ready to change how they hire.”
The Talent Gap and the Degree Divide
Conversations around skills-based hiring have been a big thing. However, this change has been slow across much of the U.S. workforce. According to SHRM data, over half of current job listings still require a four-year college degree. And this is despite the fact that two-thirds of working-age adults in the U.S. do not hold one. Cities with service-driven economies, such as Orlando, highlight how critical non-degreed workers are to local infrastructure. From hospitality to tourism and transportation, many workers gain their skills on the job rather than in classrooms. For example, someone driving an Orlando airport taxi might have extensive knowledge of logistics, customer service, and city navigation. Yet, they may still be excluded from career advancement opportunities due to a lack of a degree.
At the same time, employers are facing persistent talent shortages. Thus, 77% of hiring managers report difficulties filling full-time positions. That disconnect is one of the biggest barriers to inclusive, effective hiring. Requiring a degree for roles where one is not actually necessary excludes millions of skilled workers. Many of them can actually do the job but lack a formal academic credential.
Some sectors are leading the way in breaking this pattern. A recent CompTIA report found that among the 470,000 open IT positions in May. And nearly half of them did not require a college degree. Instead, employers focused on a blend of professional experience, training programs, and industry-recognised certifications. This shift reflects a broader understanding that in fast-paced industries, hands-on knowledge often matters more than academic background.
Education Isn’t Keeping Pace with Industry Needs
“The pace of change in areas like AI and emerging technologies means that traditional degree programs can’t keep up,” said Safstrom. “That creates a growing gap between what schools are teaching and what employers actually need from their workforce.”
The SHRM Foundation’s new Centre for a Skills First Future is designed to help bridge that gap. The platform acts as a centralised, employer-facing resource. It guides organisations through every stage of adopting a skills-first approach. Whether it is drafting new job descriptions, identifying critical competencies, or updating recruiting strategies, the centre offers a structured pathway for companies looking to modernise.
And the benefits go beyond tapping into a broader talent pool. According to SHRM, companies that adopt skills-based hiring practices can cut their cost-per-hire by up to 30% and see a 40% reduction in employee turnover. In other words, hiring for skills is not just more inclusive. It is also a smart business.
The Centre was made possible through investments from several high-profile partners. Some of them are Walmart, the Charles Koch Foundation, and Workday. All the resources are accessible for free on the SHRM Foundation’s website. So, it is easier than ever for companies to get started.
A Call for Cultural Change
With increasing awareness around equity, access, and workforce readiness, skills-first hiring is gaining traction as a modern standard. But as Safstrom points out, lasting change will require a cultural shift in how companies think about talent. “This is not just about filling roles faster,” she said. “It’s about building teams that are ready for the future.” Whether you are a recruiter, HR leader, or business owner, the Center for a Skills First Future offers a roadmap to a more inclusive, efficient, and forward-looking hiring process.
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