In skills-based hiring, a job is described by the skills it needs, such as handling cash accurately or resolving complaints, rather than by credentials that stand in for them. Applicants are then assessed on those skills through work samples, structured questions or short tests. For example, a support role might drop a degree requirement and instead ask candidates to answer a realistic customer email.
Credentials can exclude capable people who learned on the job, changed career or could not afford formal study, so focusing on skills widens the pool. The approach only works if the skills are clearly defined and fairly measured, otherwise it simply swaps one proxy for another. Structured assessments scored to a rubric, with a person reviewing the results, keep the focus on what the job actually requires.