Gen Z could wave goodbye to résumés because most companies have turned to skills-based recruitment—and find it more effective, research shows
It might not be long until résumé are a thing of the past because most bosses are favoring skills-based hiring and reporting big results.
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 research shows 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% in the previous 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.