Gen Z could wave goodbye to résumés because most companies have turned to skills-based recruitment—and find it more effective, research shows

Most of the workers that TestGorilla surveyed think that skills-based hiring levels the playing field and improves their chances of bagging their dream jobs. 

Trying to summarize every job you’ve ever had and then distill that onto a two-page résumé has been the bane of job hunter’s existence since around the 1950s. Fortunately, for Gen Z, it’s something they might never have to bore themselves with. 

That’s because new research shows that many companies are moving away from relying on the traditional job application requirement.

In fact, almost three-quarters of companies now use skills-based assessments throughout their hiring process, according to TestGorilla’s The State of Skills-Based Hiring 2023 report which surveyed 3,000 employees and employers around the world. This is up from 56% last year.

Although many of those employers are still also using CVs, it might not be long until they’re a thing of the past because most bosses are already favoring the new hiring practice and reporting big results. 

Skills-based hiring is more effective, the data shows

The employers surveyed who use skills-based hiring—which includes role-specific skills assessments, instead of simply scanning someone’s listed career experience—reported massive gains.

According to TestGorilla’s research, it reduced the number of mis-hires by 88%, total time spent searching for the perfect candidate by 82%, and hiring-related costs by 74%.

Overall, 92% of the employers surveyed reported that skills-based hiring is more effective at identifying talented candidates than a traditional CV. Meanwhile, over 80% said it’s more predictive of on-job success and leads to new hires staying longer in their roles.

By testing candidates on how they would handle the actual day-to-day responsibilities of a role, employers are more likely to hire the best person for the job instead of being drawn by big names and snazzy titles.

As Khyati Sundaram, CEO of the skill-based recruitment platform Applied, previously told Fortune, just because someone has listed on their résumé that they’ve worked with the SEO team at somewhere alluring like Google, it doesn’t actually mean they know the ins and outs of search engine optimization to the extent that’s required for a role. 

“We are trying to make sure the test or the question is as relevant to the job as possible,” Sundaram said, adding, “That’s the reason that candidates love it too.”

Intuitively people may assume that taking multiple skills-based tests would feel like more of a nuisance for job seekers than simply blasting their CV at hundreds of roles—but the data shows otherwise. 

Most of the workers that TestGorilla surveyed think that skills-based hiring levels the playing field and improves their chances of bagging their dream jobs. 

This is especially true for candidates who are often overlooked. In fact, around three-quarters of the Black, Asian, and Arab employees that TestGorilla surveyed have already reportedly gained access to new employment opportunities through skills-based assessments.

Move to scrap CVs comes as firms drop degree requirements

The uptick in skills-based hiring comes as degrees have slidden down the priority list for employers.

Google, Microsoft, IBM, and Apple have all eliminated their long-held degree requirements to remove barriers to entry and recruit more diverse talent. Meanwhile, recruiters globally are five times more likely to search for new hires by skills over higher education.

Cisco’s top executive in the U.K. recently revealed that young aspiring workers would be better off skipping out on college to join the world of work straight away.

“In university, you come out with whatever degree you may get, but it’s almost certainly saddled with debt,” David Meads Cisco’s U.K. and Ireland CEO told Fortune. “Is that better than on-the-job experience where you’re rotating through different parts of our organization, and living the reality and not just the theory?”

“For me, attitude and aptitude are more important than whatever letters you have after your name, or whatever qualifications you’ve got on a sheet,” he added.

But research has shown that skeptical Gen Z remain unconvinced: They’re shunning apprenticeship schemes in favor of going down the traditional route of college. So perhaps they will still go through the bore of writing a résumé—even if, like a college degree, it’s no longer needed.

www.fortune.com