Experience the Difference: Why Employers Are Relaxing Some Tenure Requirements | Economic Research by Indeed

Talent Acquisition

Organizations continue to report an increasing focus on skills-based hiring, prioritizing candidates’ skills over traditional credentials like academic degrees. A report by Burning Glass Institute and Harvard Business School showed that from 2014 to 2023, the annual number of job advertisements that eliminated academic degree requirements from job descriptions quadrupled. However, the same report highlights an analysis of 11,300 roles at large firms showing only a 3.5 percentage point increase in hiring workers without a BA degree after removing degree requirements. Another signal of the shift towards skills-based hiring is the removal of “experience requirements” (e.g., 3+ years in a nursing role) from job advertisements. This new analysis by Indeed shows that “less than a third of US job postings on Indeed asked applicants for a specific number of years’ experience in April, down from almost 40% in April 2022; nonetheless, years of experience requirements vary dramatically by sector. While the removal of both unnecessary educational requirements and years of experience from job descriptions is a step in the right direction towards skills-based hiring, by themselves, they are insufficient. This is because hiring managers often use these indicators as a proxy for skill level. Therefore, organizations must develop managers’ ability to assess candidates’ skills to realize the potential of skills-based hiring. What is your organization’s plan for developing managers’ capabilities in skills-based hiring?