Could you be rejecting the people you need? The case for skills-based hiring

There’s a reason why employers want degrees. They show dedication and persistence in achieving a long-term goal – qualities all employers desire in their workforce. But demanding formal qualifications for jobs that don’t always need them is backfiring – around 23 % of graduates in the EU are overqualified for their jobs, while capable non graduates are systematically excluded.

The hard truth? By insisting on a degree, you’re competing for an overqualified candidate likely to leave for a better-matched role, while ignoring a stable, skilled worker who was filtered out at the application stage.

The digital skills gap

Nowhere is this mismatch more critical than in the digital sector. Europe is facing a shortage of about 5 million ICT specialists, a gap that is widening as the economy transforms. Even so, many job adverts for IT support, coding or data analysis roles still list a university degree as a mandatory requirement. This ignores a vast pool of talent: self-taught developers, bootcamp graduates and professionals who have upskilled through non-formal learning. By filtering for credentials rather than coding ability or problem-solving skills, you are inadvertently shrinking your talent pool in the very sector where you need it most. If the candidate can do the job, does it really matter how they learned it?

The vocational advantage

Europe has a proud tradition in vocational education and training, producing highly skilled workers in sectors from engineering to healthcare. However, many EU countries still favour university degrees, causing employers to overlook these practical experts. To tap into this underutilised talent pool, simply state ‘degree-equivalent experience required’ or ‘vocational qualifications welcome’ in your adverts. This signals to the market that you value competence over pedigree, attracting a more diverse and skilled range of applicants. Also, vocational candidates often bring hands-on experience that a theoretical degree simply cannot match.

Hiring for skills rather than credentials doesn’t just fill vacancies, it improves retention. Candidates hired for their actual ability to do the job tend to be more engaged and stay longer. While qualification-heavy adverts often attract candidates who tick the boxes, skills-based hiring places greater emphasis on candidates’ actual capabilities and their fit for the role. This can in turn contribute to higher job satisfaction, stronger team morale and lower staff turnover.

Making the shift

So, how do you start? You just need to make a few changes to your process:

Audit your job descriptions. Go through your current vacancies. For every ‘degree required’ line, ask yourself: Is this truly necessary, or is it a habit? Replace it with specific skills. For example, instead of ‘BSc in computer science’, ask for ‘Proficiency in Python’.
Redefine equivalent experience. Place value on practical experience, portfolios and vocational certifications.
Don’t rely on CV screening only. Introduce work samples, practical tasks or structured interviews that test specific skills.
Leverage EURES. EURES Advisers can help redesign your recruitment strategy to focus on skills, widening your net to catch the skilled employees you need to drive your business forward.

Read about how Europe’s public employment services are helping businesses adopt effective recruitment practices.

Related links:

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EU set to miss ICT employment targets as hiring of non-EU talent intensifies

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