Skills-based hiring is becoming more popular for a variety of reasons. It's an effective way to bridge the skills gap as people earn degrees and certifications for specific jobs. And the cost of four-year degrees is becoming unattainable for many people.
In a recent article in our sister publication, EHS Today, Time for a Change in Education Requirements for Jobs, a 2024 report from TestGorilla found that 81% used skills-based hiring in 2024.
Understanding this trend, on June 2, the Society for Human Resources Management's (SHRM) foundation launched the Center for a Skills First Future (SFF), an initiative that equips employers with the tools, resources, and insights to implement and scale skills-first hiring and talent development strategies.
While the labor market continues to shift, hiring norms remain outdated, the group notes. More than half of job descriptions still require a four-year degree, even though 2 in 3 working-age adults in the U.S. don’t have one. At the same time, employers face persistent talent shortages: 77% of HR professionals report difficulty filling full-time positions.
SFF provides a centralized, employer-facing hub to help companies unlock untapped talent, improve hiring outcomes, and build more resilient, future-ready teams.
“A skills-first future is not a trend — it’s the direction the workforce is already moving. Skills-first practices reduce cost-per-hire by up to 30% and cut turnover rates by over 40%,” said Wendi Safstrom, president of the SHRM Foundation, in a statement. "These are compelling data, which reflect real opportunities for employers to build more agile and effective teams.”
The center consists of four core components.
- Skills First Credential — A program empowering companies with the knowledge, frameworks, and tools needed to lead skills-first initiatives, enabling sustainable organizational change.
- Skills Action Planner — An integrated suite of tools, including the foundational growth model, organizational skills assessment, and employer roadmap, for organizations to evaluate their current practices and receive tailored guidance to implement effective skills-first strategies.
- Skills First Resource Library — A comprehensive repository of resources, employer examples, and tools designed to support employers and HR professionals in adopting and scaling skills-first hiring, management, and development practices.
- Vendor Database — A centralized platform connecting organizations to trusted technology solutions and partners for implementing and scaling skills-first implementations. It also fosters a vibrant employer community for collaboration, peer learning, and sharing best practices to drive collective impact.
Built on Cross-Sector Leadership
The center was created in collaboration with workforce experts and organizations, and is supported by founding investments from Walmart, Charles Koch Foundation, and Workday.
It also receives support from 11 cross-sector founding partners: Business Roundtable, Competency-Based Education Network, Credential Engine, Education Design Lab, Grads of Life, Jobs for the Future, Learn & Work Ecosystem Library, National Governors Association, Opportunity@Work, SkillsFWD, and the U.S. Chamber of Commerce Foundation.
“We believe we can unlock new talent pools when we give people credit for all the skills and experience they bring to the table and take into account their potential and sense of purpose,” said Julie Gehrki, president of the Walmart Foundation, in a statement. "We’re proud to support this project to continue creating a world where individuals thrive based on their capabilities. This initiative represents a much-needed resource we think can help employers, large and small, accelerate the adoption of skills-based practices across their companies."
