Companies using skills-based hiring report better employee retention and better job performance compared to those focusing on degrees and credentials.

The best skills assessments combine practical demonstrations with real-world problem-solving rather than just using standardized tests or trusting what people say about their abilities.

Skills-based career advancement creates more movement within companies, with employees crossing traditional department boundaries based on what they can do rather than formal qualifications.

Approaches that value both skills and credentials work best, recognizing that formal education provides important foundation knowledge while practical skills show how well someone can apply it.