What Is Skill Gap Analysis? Meaning, Steps & Benefits in India
Book a Free DemoSkills-Based Hiring
A recruitment approach that prioritizes candidates’ skills and competencies over formal qualifications. This method can expand the talent pool and improve job matches.
Skills-based hiring is a recruitment approach that prioritises a candidate’s abilities and competencies over traditional credentials like degrees or years of experience. It evaluates applicants based on practical skills, often tested through assignments, portfolios, or assessments.
In India, skills-based hiring is gaining popularity in IT, design, startups, and gig work, where job performance depends more on capability than formal education. This approach expands the talent pool, improves diversity, and helps employers find better job fits.
💬 “Pagarai’s recruitment tools helped us shift to skills-based hiring, cutting our hiring time in half.” — Meena, Talent Acquisition Lead
👉 Want to recruit for skills, not just degrees? [Get Pagarai’s skills-based hiring toolkit →]
Key Steps in Skills-Based Hiring
| Step | Purpose |
| Define Required Skills | Identify essential technical and soft skills for the role |
| Design Skill Assessments | Use tests, assignments, or simulations |
| Source Candidates | Look beyond traditional degree-based pools |
| Evaluate Skills | Score based on performance, not background |
| Make Offers | Select candidates with proven competencies |
Bonus: Combine skills-based assessments with structured interviews for better hiring accuracy.
Why It Matters
- Expands access to untapped talent pools
- Improves job performance and retention
- Reduces bias in recruitment
- Speeds up the hiring process
- Matches candidates more accurately to roles
Common Tools for Skills-Based Hiring in India
- HackerRank, Codility – for coding skill assessments
- TestGorilla, Mettl – for general and role-specific skill tests
- Pagarai HR Suite – for skill-based job descriptions and candidate evaluation workflows
How Pagarai Helps
- Creates skill-focused job postings
- Provides pre-built assessment templates for various roles
- Automates candidate scoring and shortlisting
- Integrates with applicant tracking systems (ATS)
- Tracks ROI of skills-based recruitment programs
FAQ
Q1: Is skills-based hiring legal in India?
Yes — as long as it complies with equal opportunity employment laws.
Q2: Does it mean qualifications don’t matter at all?
Not necessarily — they are considered, but skills are the main focus.
Q3: How do you measure soft skills in this approach?
Through behavioural interviews, role-play exercises, and peer reviews.
Q4: Can small businesses use skills-based hiring?
Yes — it can save costs and improve hiring quality for SMEs.
