Employers say Skills Beat Schooling

Reflecting the growing trend of skills-first hiring, the majority of both job seekers (67%) and employers (55%) now agree on-the-job experience is more attractive than university degrees.

Employers say the biggest recruitment challenge they face today is a lack of ‘quality’ applicants with the skills required to do the job, so they’re getting more creative at removing barriers for job seeker - like uni degrees as prerequisites - to widen the net and fill their open positions.

The new research by job site Indeed reveals changing attitudes towards recruitment and qualifications as skills shortages continue to bite in 2025.

New Hires Paid to Upskill
In another move to combat a skills deficit, the majority of employers (76%) say they have changed or plan to change their learning and development programs to help new hires acquire necessary skills while on the job.

Investing in these programs makes good sense given over three quarters (79%) of job seekers say learning and development opportunities are important when deciding whether to apply for a role. In fact, many say they would prefer a job with a less competitive salary if it offered L&D opportunities instead.

Who’s being Hired
According to Indeed’s data, employers today define a good quality candidate as someone who adds new capabilities and perspectives to their team (54%), and responds well to upskilling and training (54%). This reflects the growing shift towards investing in people to gain the skills they require post their hire.

What’s more, when assessing if someone is a ‘quality’ hire, most employers will prioritise asking about their on-the-job experience to help them decide. And the majority of job seekers applaud this, with 70% agreeing it should be the number one question asked during the interview process.

Skills-first Hiring Promotes Quality
Employers believe skills-first hiring can improve their applicant pool (33%), increase performance (33%), and create more equitably distributed opportunities for job seekers (29%). It’s good news therefore that half of managers who don’t have a skills-first hiring strategy say they plan to implement one.

Job seekers also recognise the benefits of skills-first hiring, believing it helps them to better highlight their skills which allows employers to learn more about them as a worker (44%). 

Thinking about how employers can implement a skills-first hiring strategy, job seekers want them to hire with the mindset they can train a quality candidate, emphasise skills over proxies, and encourage people without degrees to apply.

Sally McKibbin, Career Expert at Indeed said employers are increasingly of the view that on-the-job experience has the potential to speak louder than a formal qualification.

“Higher education is of course still incredibly valuable and also valued, but Australia’s job market is evolving and therefore so too is our approach to hiring.

"A skills-first approach to hiring is a win-win. It fosters a more inclusive and dynamic workforce, and creates opportunities for people who possess immense potential but may not have had access to higher education.

“By paying greater attention to practical experience and growth potential, businesses can access a wider pool of talented individuals who are able to hit the ground running.”

About the Study
This study was conducted online by YouGov between 21 June - 12 July 2024, surveying 9,671 job seekers (507 Australian) and 5,666 employers (248 Australian) across Australia, the US, UK, Germany, France, Netherlands, Italy, India, Singapore, and Japan.