AI Tools Drive Shift Toward Merit-Based Recruitment
Mumbai: A growing number of employers are embracing a skill-first hiring strategy, moving away from traditional resume-based screening. According to the Skill-First Hiring Report by Equip, an AI-powered skill assessment platform, 59 per cent of companies now prioritise skills over credentials — a 26 per cent increase from last year and a 78 per cent rise since 2022.

The report attributes this sharp shift to the growing use of artificial intelligence tools that help recruiters assess real-world abilities at scale, streamlining the evaluation process and enhancing objectivity.

AI-Driven Assessments Redefine Talent Acquisition
“The shift to skill-first hiring marks a turning point in how organisations identify and nurture talent. By combining AI with real-world skill validation, companies are moving from credential-based to merit-based hiring. This enables faster hiring, stronger retention, and more objective team building,” said Equip Founder and CEO Jayanth Neelakanta.

The findings are based on insights from over 1,700 recruiters and hiring managers, along with data from 2,50,000 candidate assessments conducted across 600 organisations.

Fewer Mis-Hires, Better Alignment
The report also highlighted that mis-hire rates — instances where new hires are later deemed a poor fit for their roles — have dropped by 50 per cent under the skill-first model. Interestingly, not all mis-hires result in turnover, as some employees continue within organisations despite a mismatch in role alignment.

A New Era of Hiring
The growing adoption of skill-based recruitment signals a broader transformation in the job market, where measurable competencies and performance potential are taking precedence over formal qualifications. As AI-driven assessments continue to mature, experts believe this trend will redefine how employers evaluate, hire, and retain talent in the years ahead.