Skills-based hiring has moved from trend to mainstream: more employers now judge candidates on what they can do rather than the degrees and job titles on their CV. This article looks at what skills-based hiring gets right, where it falls short, and why combining skills tests with ability tests gives employers a fuller and fairer picture.

The rise of skills-based hiring

Surveys show that most employers now use some form of skills-based hiring. NACE's Job Outlook 2026 survey, for example, found that 70% of employers use skills-based hiring, up from 65% the year before [1]. The reasons are sound. Degrees and job titles are rough signals of capability, and relying on them can screen out capable people who learned their skills in other ways. Measuring skills directly widens the talent pool and makes selection more relevant to the job.

What skills tests measure well

A skills test, or work sample, asks candidates to do a task that closely resembles the job: building a spreadsheet, typing a legal letter, checking a prescription, using AI to complete a piece of work. Research has long shown that work samples are among the more valid predictors of job performance [2, 3]. They are also seen as fair and relevant by candidates, who can see the link to the job.

Viewpoint's work skills tests follow this approach, including SheetCheck for Excel, DocCheck for Word, AICheck for AI skills, the Legal Copy Typing Test and the Nursing Comprehension Test.

Where skills tests fall short

Skills tests measure what someone can do now. That is exactly right when a role needs the skill from day one. But many roles change, and many employers hire people who will learn the job, such as graduates, apprentices and career changers. A skills test says little about how quickly someone will pick up new systems, solve unfamiliar problems or grow into a bigger role.

There is also a fairness point. Candidates who have had the chance to use a particular tool will do better on a test of that tool, whatever their potential. Relying only on current skills can quietly reintroduce the advantage that skills-based hiring was meant to remove.

What ability tests add

Ability tests, such as numerical, verbal, abstract and mechanical reasoning, measure how well someone reasons with new information. Decades of research show that general mental ability is one of the strongest single predictors of job performance and, in particular, of how well people learn in training [2]. More recent analysis suggests some earlier validity figures were overestimated, but confirms that ability tests remain useful predictors [3].

In short, a skills test tells you what someone can do today. An ability test tells you how readily they will learn what they need tomorrow.

Putting them together

A practical approach is to decide, role by role, how much the job needs ready-made skills and how much it needs the capacity to learn:

• Ready-from-day-one roles, such as an experienced legal secretary or a finance analyst: lead with a skills test, supported by a relevant ability test.

• Learn-on-the-job roles, such as apprentices, graduates or career changers: lead with ability tests, perhaps with a basic skills check.

• Most roles in between: use both, and add a situational judgement test or personality questionnaire to understand how the person is likely to approach the work.

Read results in bands from Very Low to Very High alongside a structured interview, rather than as pass marks, and use them to target interview questions and training.

See our ability tests, our work skills tests, or our guides to the Excel skills test and numerical reasoning.

Frequently asked questions

Is skills-based hiring the same as testing skills?

Not quite. Skills-based hiring means judging candidates on their capabilities rather than credentials. Skills tests are one way to do that; ability tests, SJTs and structured interviews are others.

Should we drop degree requirements?

Many employers have, for roles where a degree is not essential. Replacing them with relevant tests helps keep selection both open and rigorous.

Which is more predictive, a skills test or an ability test?

Both predict performance. Skills tests are strongest for current performance in the tested task; ability tests are strongest for learning and adapting.

Can candidates prepare?

Yes. Practice questions help candidates understand the format, which is fairer for everyone.

References

1. National Association of Colleges and Employers (2025). Job Outlook 2026. Bethlehem, PA: NACE.
2. Schmidt, F. L. & Hunter, J. E. (1998). The validity and utility of selection methods in personnel psychology: practical and theoretical implications of 85 years of research findings. Psychological Bulletin, 124(2), 262–274.
3. Sackett, P. R., Zhang, C., Berry, C. M. & Lievens, F. (2022). Revisiting meta-analytic estimates of validity in personnel selection: addressing systematic overcorrection for restriction of range. Journal of Applied Psychology, 107(11), 2040–2068.