This article was originally published by the National Association of College and Employers (NACE). Author: Kevin Gray. Please see excerpt below and full link to article.

“Students hoping to demonstrate their skills during a skills-based hiring process should share examples and situations when they used their skills to solve problems. This advice comes directly from employers responding to NACE’s Job Outlook 2026 survey.

Providing evidence of their skills requires students to reflect on their experiences through the lens of the job search and make a connection between the skills they have gained and the job for which they are applying.”

This is increasingly important for college students to hone because the use of skills-based hiring by employers is increasing. Among employers participating in the Job Outlook 2026 survey, 70% report using skill-based hiring, up from 65% last year.

To start, students can stand out simply by grasping what this approach to the recruiting process entails; fewer than 40% of graduating seniors said they were familiar with the term “skills-based hiring,” which is a strategic approach in which employers align their recruitment processes with the skills needed for success in today’s dynamic workforce. Employers do so by focusing on the skills candidates have rather than specifically on academic degrees or grade point average (GPA).

Employers’ use of skills-based hiring practices as a screening tool is notable as this has partly displaced GPA. In 2019, nearly three-quarters of employers (73%) screened candidates by GPA; this year, just 42% are doing so.

This shift from relying heavily on GPA to focusing on skills benefits students as it removes limits and widens the hiring focus to students who can show that they have the skills to do the job. But what are the key skills employers look for?

NACE’s Job Outlook surveys consistently reveal that employers seek critical thinking/problem-solving, communication, and teamwork skills in the candidates they recruit. These skills are often gained through work performed and programming offered during internships and other experiential education assignments, and through employment.

This is good news as students recognize the value of experiential education. In fact, 84.1% of students responding to the 2025 Student Survey participated in experiential learning. More than half of experiential learners gained skills and experience through internships, with on-campus jobs, practicums, and faculty-led research projects serving as other popular means for developing relevant skills.

(Note: The importance of internships is further underscored by the fact the employers regard having an internship with their organization or within their industry to be the most influential factors when choosing between two otherwise equally qualified job candidates.)

Employers report using skills-based hiring most often when screening and interviewing candidates. These skills can and should be included in a resume and cover letter. However, they become 3-D—gaining context, depth, personality, and vibrancy—during student-recruiter interactions.

During interviews, employers use behavior-based questions to unearth key skills their candidates possess. This is a student’s opportunity to demonstrate the pre-interview research they have done, articulate the skills and experiences they have gained, and relate them to the job, organization, and industry.

To prepare, students can look for clues about the skills the employer is seeking; NACE research found that more than 80% of employers highlight key skills needed for the position when creating their job descriptions. Some employers will also provide students with examples of the questions they will be asking.

The fact is that, although the concept of skills-based hiring may not be fully understood by all college students, they do know they are acquiring the key skills needed for successful entry into the workforce.

Among those responding to the 2025 Student Survey, 88.1% report participating in projects, internships, or volunteer work that helped them develop skills relevant to their career goals, and 45.6% percent have performed skills or have taken an assessment as part of job interview or application.

It’s also true that college graduates are particularly poised to undergo a skills-based hiring process. They have been accumulating and honing their knowledge, abilities, and skills throughout their coursework and co-curricular activities. However, they need to articulate the connection between the skills they have gained and the job for which they are applying to take the desired first step in their professional career.

Kevin Gray is a senior editor at NACE. He can be reached at kgray@naceweb.org.

Full URL: What Students Need to Know About the Skills-Based Hiring Process