Redefining Hiring Norms: A Skills-First Approach in India
Shifting Focus from Degrees to Skills
“College – does not matter. Resume – not needed,” declared Sudarshan Kamath, founder of the AI startup Smallest.ai, in a recent hiring post. The Bengaluru-based startup is looking for a full-stack engineer with a lucrative salary of ₹40 lakh per annum. This unconventional approach attracted over 7,000 applicants, indicating a shift in the hiring landscape.
Decoding the Success at Smallest.ai
Smallest.ai operates with a compact team of approximately 14 employees, four of whom have either never attended college or are dropouts. Despite their unconventional backgrounds, these individuals excel alongside their colleagues from reputed institutions like IITs, VIT, and IIIT.
The Founders’ Perspective
Kamath and co-founder Akshat Mandloi, both IIT Guwahati alumni, emphasize the importance of performance over degrees. “We prioritize skills and the aptitude people demonstrate through personal or work projects. Filters based on educational qualifications are something we explicitly avoid,” Mandloi shared.
A Changing Landscape in India
This hiring philosophy reflects a broader change in India’s competitive job market, where an increasing number of companies are embracing a skills-first approach.
Zerodha’s Curiosity-Driven Hiring
Discount broker Zerodha exemplifies this trend by prioritizing candidates’ curiosity and eagerness to learn over formal qualifications. Mohammed Shoaib, Vice President of Onboarding and Business Administration, mentioned that the hiring process focuses on understanding candidates’ motivation, skills development efforts, and lifelong learning potential.
Reducing Attrition Rates
“This has been our hiring strategy, contributing to our lower-than-industry-standard attrition rates,” Shoaib noted, showcasing the effectiveness of this approach.
IBM’s Commitment to Skills Over Degrees
IBM is another front-runner in adopting this perspective. Thirukumaran Nagarajan, Vice President of Human Resources for IBM India and South Asia, noted that demonstrated expertise now trumps traditional qualifications in their hiring strategy.
The Rise of “New Collar” Employees
As programming skills evolve, the demand for “new collar” workers is rising, allowing companies to unlock diverse talent and foster innovation.
Innovative Hiring Techniques at IBM
One method used for recruitment at IBM involves hackathons, which focus on problem-solving abilities rather than conventional resumes.
Mobile Premier League’s Skills-Based Focus
Gaurav Kriplani, Head of People at Mobile Premier League (MPL), echoed similar sentiments. He emphasized the significance of relevant skills and experience, often evaluating candidates through practical assignments tied to their prospective roles.
Wider Talent Pool at MPL
This approach has enabled MPL to tap into a broader range of talent, ensuring that new hires genuinely contribute to their teams.
Employer Trends in India
According to The World Economic Forum’s 2025 Jobs Report, approximately 30% of Indian employers aim to adopt skills-based hiring, surpassing the global average of 19%.
Tata Communications’ Adaptation to Skills-Based Hiring
At Tata Communications, skill is at the forefront of their hiring strategy. Allwyn Dsilva, Global Head of L&D, highlighted their shift to prioritize skills in response to an evolving industry landscape.
Enhanced Workforce Adaptability
The shift towards skills-first hiring has not only widened the talent pool but has also improved workforce adaptability and enhanced the company’s ability to drive innovation.
Zetwerk’s Focus on Adaptability
At contract manufacturing company Zetwerk, the emphasis on skills-first hiring is particularly evident in business and sales roles where problem-solving abilities and a strong execution mindset are prioritized.
Openness to Change Among Traditional Employers
Some traditional companies are also considering a transition to skills-based hiring. KA Narayan from the Raymond Group noted increasing trends towards this direction.
The Future of Hiring in India
As the trend towards skills-based hiring continues to gain momentum, it is reshaping the Indian job market, offering new opportunities for talent, regardless of formal educational backgrounds.
Conclusion
The movement towards a skills-first approach in hiring signifies an important evolution in how companies assess talent. By focusing on skills and potential instead of formal qualifications, businesses are increasingly creating inclusive and diverse workplaces that can adapt to changing market demands.
FAQs
- 1. What is a skills-first hiring approach?
A skills-first hiring approach prioritizes a candidate’s skills and potential over traditional indicators like educational degrees and prior employment experiences. - 2. Why are companies moving towards skills-based hiring?
Companies are shifting to skills-based hiring to access a broader talent pool, enhance workforce adaptability, and foster innovation. - 3. How do companies evaluate skills during the hiring process?
Organizations often use practical assignments, coding challenges, and hackathons to evaluate candidates’ technical and problem-solving skills. - 4. What are the benefits of a skills-first hiring approach?
Benefits include reduced attrition rates, improved team dynamics, and the ability to attract diverse talent that can contribute meaningfully to an organization. - 5. Is this trend recognized globally?
Yes, the trend towards skills-based hiring is gaining international recognition, with a notable increase in companies adopting this approach across various industries.
