For years, hiring has been dominated by resumes, degrees, and the ability to drop the right buzzwords into an application. And what did that get us? A workforce filled with people who looked great on paper but didn’t always have the skills to match or the knowledge to actually apply their so-called experience in a real-world scenario. Enter skill-based hiring—a game-changer that separates real ability from keyword-stuffed resumes. Instead of relying on AI-driven filters that scan for the right terms, companies should be assessing what actually matters: Can the candidate do the job? Or as we in India like to say, “Kya banda kaam kar payega?”

The Problem with Traditional Hiring

Let’s talk about the elephant in the room—ATS (Applicant Tracking Systems) and AI resume screeners. These man-made tools have been widely adopted to help companies shuffle through thousands of applications, but they come with serious flaws:

• They prioritize keywords over capability: Candidates who know how to game the system (or use a resume-writing service with white-ink, well-placed keywords) often rank higher than those who are genuinely qualified.
• They reinforce bias: If AI is trained on past hiring practices, it simply repeats them, often eliminating diverse and unconventional talent from being discovered.
• They overlook real-world skills: A degree from a top university doesn’t automatically mean someone can solve real problems in a work environment. I personally have an ‘Ace’ digital marketing individual on my team who, when the need arose, handled and still continues to handle a lot of my IT-related developments! This person has also become the go-to expert when my IT team has queries about the logic and function of our product.

Why Skill-Based Hiring is the Answer & the Way Forward!

Companies that embrace skill-based hiring don’t just find better employees—they future-proof their workforce. Here’s why:

• Measurable Competency: Instead of relying on what someone says they can do, organizations can evaluate what they actually know. Imagine taking an interview of a smooth talker who knows exactly what they need to say to get through the system versus someone who may not be the best communicator (due to shyness, anxiety, or nervousness) but can definitely get the work done when put to the task. Consider the cost of a wrongful hire and the impact on your workforce.
• Fair & Inclusive: This approach opens doors for candidates who have the skills but not the "right" background on paper. More often than not, we witness hires that seemed great during the interview but fail to deliver when the real work begins. Regardless of whether your company has 10 employees or 10,000, being able to make better, data-driven decisions about your workforce is KING!
• Better Business Outcomes: Employees hired based on their skills are more productive, engaged, and tend to stay longer. In the book Rework by Jason Fried & David Hansson, the effectiveness of a smaller, more compact “Lean Team” is highlighted. A lean team tends to yield quicker and more effective results. My business partner and I strongly believe in this approach. We don’t need separate back-end and front-end developers when a full-stack developer—who is well-versed with the product, asks insightful questions, and delivers faster results—can get the job done.

How Practic-Alt is Leading the Charge

At Practic-Alt, we’ve built IdentifiEd, a skill analysis tool designed to eliminate the guesswork from hiring and workforce evaluation. Our platform allows companies to test candidates on actual competencies—across industries and job roles—without bias or reliance on keywords. With assessments available in 12 regional Indian languages, we ensure businesses can tap into a wider and more diverse talent pool. Imagine an only-English-speaking salesperson trying to win over a customer who speaks only Hindi, Bengali, Kannada, or Punjabi. Not only would the customer feel disconnected, but the sense of comfort would vanish faster than you can say “Sold”. Having a diverse, well-equipped, well-structured, and SKILLED team is the way of the future! Organizations that adopt skill-based hiring now are setting themselves up for long-term success. Those still relying on outdated resume filters? They’re missing out on top talent. The shift is happening. Are you on board?