Hiring for manufacturing and logistics used to rely heavily on formal education, previous job titles and years of experience. That approach has resulted in shallow talent pools and a lack of diversity. A paradigm shift is underway. Skills-based hiring focuses on the abilities and competencies required for the job instead of credential-centric filters. According to LinkedIn’s Skills-Based Hiring 2025 report, shifting to a skills-based model can expand talent pools by six times. The same report reveals that such an approach increases female representation in AI and technology roles by up to 24 percent. These statistics underscore why skills-based hiring is gaining momentum across
industries, particularly in manufacturing and logistics.
What is skills-based hiring?
Skills-based hiring emphasises demonstrable abilities over traditional proxies like degrees or job titles. Employers define the core competencies needed for a role and then evaluate candidates based on those competencies. For instance, a warehouse supervisor might need inventory management knowledge, leadership skills and forklift certification. Candidates who demonstrate these skills—whether they acquired them through previous roles, vocational training or self-study—would be considered qualified. This approach contrasts with credential-focused hiring where a candidate without a degree might be overlooked despite having relevant experience and capability.
By focusing on skills, companies tap into talent from unconventional backgrounds. Workers from adjacent industries, career changers, veterans and recent graduates can all meet the requirements if they have the right skills. This wider lens is responsible for the dramatic talent pool expansion noted in the LinkedIn report.
Why traditional hiring falls short
Conventional hiring methods prioritise job titles, degree requirements and years of experience. These proxies can exclude capable candidates and reinforce systemic barriers. For example, requiring a four-year degree for a warehouse management role may disqualify skilled supervisors who have gained expertise on the job. As a result, manufacturing and logistics employers often struggle to fill positions and maintain diversity. The cost of turnover is high, and vacancies delay production schedules.
Another problem is that job titles do not always reflect the skills needed for the role. A candidate may have held the title of “production assistant” but developed strong scheduling and quality control abilities. If an employer only searches for candidates with “scheduler” in their history, they may miss this individual. Skills-based hiring encourages recruiters to look at what candidates can do instead of what they have done in the past.
Benefits of skills-based hiring for manufacturing and logistics
Implementing skills-based hiring brings several advantages to industrial employers:
- Broader candidate pool: LinkedIn’s research shows that skills-based hiring can widen the talent pool by six times, allowing employers to access a more diverse group of applicants.
- Improved diversity: By removing unnecessary degree requirements, companies encourage more women and underrepresented groups to apply. The report notes that female representation in technical roles can increase by up to 24 percent.
- Reduced time-to-hire: When recruiters focus on skills, they quickly identify qualified candidates instead of filtering through resumes with unhelpful credentials. This speeds up hiring and reduces costs.
- Better retention: Candidates hired for their actual abilities are more likely to excel, stay engaged and grow within the company. They understand the job demands and are committed to meeting them.
Implementing skills-based hiring
To adopt skills-based hiring in manufacturing and logistics, organisations must change their mindset and processes. It is important to view this shift as a strategic investment in workforce quality and diversity. Here are practical steps:
Define the core skills for each role
Begin by partnering with supervisors and high-performing employees to identify the essential skills for a role. For a materials handler, this might include inventory tracking, forklift operation and knowledge of safety protocols. Create a matrix of skills and proficiency levels for every position. This matrix becomes the benchmark for assessing candidates.
Develop fair assessments
Design assessments that allow candidates to demonstrate their skills. Practical tests, scenario-based questions and simulations can be more effective than standard resumes or educational requirements. For example, ask candidates to organise a mock inventory or identify hazards in a simulated warehouse environment. These tasks reveal their real-world abilities and problem-solving strategies.
Expand sourcing channels
Reach potential candidates by partnering with vocational schools, apprenticeship programs and community organisations. Advertise in places where skilled workers look for opportunities rather than limiting postings to college job boards. Encourage current employees to refer peers who may have developed relevant skills outside of formal schooling.
Train hiring managers
Managers accustomed to evaluating job titles and degrees need guidance on assessing skills and potential. Provide training on reading skills-based resumes, conducting competency-based interviews and recognising transferable abilities. This ensures that decision-makers embrace the new model and reduce bias toward traditional credentials.
Monitor diversity and outcomes
Track metrics such as applicant diversity, time-to-hire, retention and productivity under the new approach. Comparing results before and after implementation helps identify successes and areas for improvement. Adjust hiring criteria as you learn what skills correlate with on-the-job success.
Numbered list for implementation phases
- Pilot the process in one department: Start with a specific job family such as warehouse operators. Test the skills matrix, assessments and training materials. Collect feedback from hiring managers and new hires.
- Roll out across the organisation: Use insights from the pilot to refine practices, then scale to other departments. Continue monitoring outcomes and adjusting the process based on performance data.
Overcoming challenges and promoting diversity
Adopting skills-based hiring requires a cultural shift. Some hiring managers worry that removing degree requirements could lower standards, but the opposite is often true. Focusing on measurable skills ensures that candidates meet the actual demands of the job. Data from the LinkedIn report indicates that younger workers and those without degrees benefit the most. Employers can tap into a larger pool of motivated workers who previously lacked opportunities because they did not have formal education.
Skills-based hiring also contributes to diversity and inclusion. Traditional filters often disadvantage women and minorities who might not have the same access to higher education. By evaluating skills, companies open doors for a wider range of applicants. As more women move into technical and industrial roles, teams become more diverse, which is linked to improved creativity and problem solving.
Another challenge is convincing stakeholders to trust the new process. Sharing data on expanded talent pools, faster hiring and improved retention helps build buy-in. Highlighting success stories where skills-based hiring has filled critical roles can also reassure sceptics.
Adopt skills-based hiring with expert support
Skills-based hiring offers manufacturing and logistics employers a powerful way to find capable workers, build diverse teams and meet production demands efficiently. Research shows that it can increase the size of the talent pool sixfold and improve diversity metrics. Implementing this approach requires careful planning, including defining necessary skills, creating fair assessments, training managers and monitoring outcomes. Organisations that embrace this change will be better positioned to navigate labour shortages and compete in the future. By partnering with a trusted staffing provider like TBest Services, employers can access customised skills-assessment tools and expert guidance for transitioning to a skills-focused recruitment model. Such collaboration ensures that the benefits of skills-based hiring translate into real improvements in workforce quality and organisational success.