Why Gen Z Are Driving the Shift Towards Skills-Based Hiring

Career Switching and Job Hopping Trends
Unlike previous generations who often stayed with the same employer for their entire careers, Millennials and Gen Zs are more likely to switch jobs and even careers. This trend, often labeled as "job-hopping," reflects their pursuit of better opportunities and more fulfilling work environments.
A 2022 report by Lever found that 65% of Gen Z employees intend to stay with their current employer for less than a year. Millennials, too, are comfortable with regular job changes, with 21% reporting they had changed jobs in the previous 12 months.
This trend can be attributed to several factors:
Seeking Better ROI: Younger workers are looking for employers who offer better returns on their time and skills. They are not afraid to switch jobs if they feel disengaged or undervalued.
Flexibility: Many younger workers are involved in the gig economy or have side hustles, making flexibility a key factor in their job satisfaction.

The Appeal of Skills-Based Hiring to Job-Hoppers
Skills-based hiring appeals to job-hoppers because it values skills over tenure or industry-specific experience. This approach allows younger workers with varied employment histories to be fairly assessed based on their abilities rather than the length of time they’ve spent in a particular role.
For employers, skills-based hiring opens up access to a talent pool of fresh perspectives and diverse experiences, helping to mitigate the perceived negatives of job-hopping.

Prioritizing Diversity and Equality
Millennials and Gen Zs prioritize diversity and equality in the workplace. They seek employers who not only talk about diversity but take meaningful steps to ensure it. This expectation aligns with the skills-based hiring approach, which helps eliminate biases by focusing on a candidate’s abilities rather than their background or educational qualifications.
According to the 2024 Deloitte survey, 38% of Gen Zs and 39% of Millennials identify inclusive employment opportunities as one of the most effective ways businesses can support social equality. This generation's demand for diversity and inclusion is driving employers to adopt practices that genuinely promote equality, with skills-based hiring being a key strategy.

Less Focus on Traditional Education
Younger generations are increasingly moving away from traditional four-year degrees. The rising cost of education, coupled with the availability of alternative learning pathways, has made vocational training and self-directed learning more attractive to Millennials and Gen Zs.
Deloitte’s 2024 Gen Z and Millennial Report found that a significant portion of these generations have chosen not to pursue higher education, citing financial constraints and a preference for more practical training. This shift makes skills-based hiring particularly appealing, as it allows candidates to showcase their abilities regardless of their educational background.

Emphasis on Continuous Learning
Continuous learning is a priority for younger workers. They understand that the job market and required skills are constantly evolving and seek employers who offer opportunities for professional development.
In a 2022 survey by Lever, 17% of Gen Z workers identified upskilling and reskilling opportunities as key motivators for staying with their current employer. This focus on learning aligns with skills-based hiring, which not only evaluates candidates' current abilities but also signals a commitment to their ongoing development.

Digital Natives and Tech-Forward Approaches
Millennials and Gen Zs are digital natives who expect technology to be integrated into every aspect of their lives, including the hiring process. They are comfortable using digital tools to find job opportunities, learn new skills, and communicate with potential employers.
Skills-based hiring naturally aligns with these expectations, offering online assessments and tech-driven recruitment processes that appeal to younger candidates. For employers, adopting a tech-forward approach is not just about meeting these expectations it’s about staying competitive in a digital-first world.