8 hours ago
Graduating Into Uncertainty: Why Skills-Based Hiring Matters
As organizations continue to face growing skills gaps, HR teams are starting to rethink what a 'qualified' candidate looks like.
By Lara Albert, Chief Marketing Officer, SAP SuccessFactors
Graduation season is here, and for the Class of 2025, the usual mix of excitement and anticipation comes with an added layer of anxiety. These grads are entering one of the toughest job markets in recent memory, marked by economic uncertainty, hiring slowdowns, and rising competition for junior roles as AI displaces entry-level positions at an accelerated rate.
But uncertainty is nothing new for the Class of 2025. These students applied to colleges during a global pandemic, spent formative years learning in hybrid or remote classrooms, and are now witnessing AI reshape the future of work in real time. According to research, of the 57% of seniors who entered college with a 'dream job,' fewer than half have that same goal today, and more than half report feeling pessimistic about starting their careers in the current economy.
This wave of uncertainty presents an opportunity for both employers and graduates to adapt. For HR teams, it's a chance to rethink how early talent is identified and supported, shifting the focus from traditional credentials to skills and long-term potential. For graduates, it means continuing to build new skills post-graduation, especially those that AI can't easily replicate, and staying agile in a fast-changing job market.
As organizations continue to face growing skills gaps, HR teams are starting to rethink what a 'qualified' candidate looks like. Traditional markers like degrees, GPA, or prior experience don't always reflect someone's true potential and can unintentionally screen out capable candidates, especially those who've followed nontraditional paths.
That's why leading organizations today, like Capgemini, Grundfos, Frit Ravich, and SAP are investing to adopt skills-based hiring. By evaluating candidates based on their capabilities—what they can do, not just what they have done—organizations can uncover hidden potential, expand their talent pools, and open doors for candidates who may not follow a conventional path but offer tremendous value. In turn, skills-based hiring helps organizations build a workforce that's resilient and future-ready.
In fact, two-thirds (64.8%) of employers surveyed by NACE reported that they already use skills-based hiring practices for new entry-level hires. By focusing less on resumes and more on real-world potential, grads gain a better shot at landing roles where they can grow and thrive, and organizations benefit from employees who can adapt and drive ongoing innovation and business success.
A skills-first approach creates a more equitable and effective way to identify talent —highlighting ability over background, and uncovering value both externally and within your existing workforce. Here's how to get started:
Rethink job requirements: Start by identifying the core skills needed for success in open roles. Many job listings include degree or experience requirements that may unintentionally exclude qualified candidates. Focus on must-have skills that will drive performance.
Use skills-based assessments: Integrate practices like case study exercises or skills assessments into interviews rather than relying solely on candidates' resumes, educational background, or screener interviews.
Increase skills visibility: Equip hiring managers with technology that makes it easy to see the skills a candidate has and where they align with organizational needs at scale. This allows for faster and more strategic hiring decisions.
If you're graduating this year, don't let uncertainty hold you back. You may be entering a shifting job market, but your resilience, adaptability, and fresh perspectives are skills and qualities employers value. Here are a few ways to stand out:
Lead with transferable skills: Communication, critical thinking, adaptability, and collaboration are among the most valued and transferable skills. These skills are in high demand and are often hard for AI to replicate.
Show, don't tell: Use internships, job assignments, or volunteer work to demonstrate real world applicability of your skills. Portfolios, personal websites, or even social media content can bring your experience to life and give employers a tangible sense of what you can do.
Embrace life-long learning: Learning doesn't stop when you graduate. Show prospective employers you're committed to growth by taking advantage of free or low-cost courses that help you build valuable new skills.
Be flexible: Your first job is a steppingstone, but it doesn't define your career path. Stay open to opportunities that help you gain experience, even if they don't perfectly align with your dream job aspirations.
This year's graduates are entering a job market in flux, but with the right tools and mindset, both HR teams and early talent can turn uncertainty into opportunity.
Discover how SAP SuccessFactors helps organizations adopt skills-based hiring strategies.
