How Skills-Based Hiring Is Creating Faster Paths to Work

“Education is not the learning of facts, but the training of the mind to think,” said Albert Einstein. That line still hits home, especially as the job market continues to value what people can do, rather than how long they sat in a classroom. Hence, the emphasis we are beginning to see on skills-based hiring

A new economic report puts this into sharper focus. Nearly 34% of workers in the U.S. are employed in STEMM fields (Science, Technology, Engineering, Mathematics, and Medicine), and over half of them don’t hold a four-year degree. That’s more than just a trend. It’s a shift toward skills-based hiring that puts practical know-how above pedigree. And it’s creating real income and growth for those who pursue it.

 

Degrees Are Not the Only Door to Being Hired

The economic impact study found that STEMM jobs account for 39.2% of the U.S. gross domestic product. That’s a significant share of economic activity powered by a workforce where many don’t have a bachelor’s degree. These positions range from medical technicians to IT support roles to skilled trades—all requiring knowledge, but not necessarily a college diploma.

What this shows is that formal education isn’t the only path to financial stability. Many roles reward people for their technical ability, certifications, or hands-on experience. In fact, the study points out that these jobs generated over $20 trillion in output. That’s an open door for anyone willing to gain practical skills and apply them.

 

Economic Policy Is Part of the Picture

Wages and interest rates don’t exist in a vacuum—they affect how people work and how businesses hire. As Reuters reported, the Federal Reserve is wrestling with unpredictable data tied to tariffs and inflation. When policies flip between growth and restriction, hiring can stall.

This kind of instability leads employers to rethink how they build their teams. Rather than commit to long, expensive training pipelines, many are choosing workers who can contribute immediately. That brings skills-based hiring to the forefront. Being ready to start on day one, with less overhead, makes people more marketable—especially in uncertain conditions.

 

Wage Floors Keep Rising along with Skill Requirements

Income expectations are also being reshaped. As of January 1, 2025, federal contractors must be paid at least $17.75 per hour, thanks to Executive Order 14026, as outlined by the National Law Review. That’s a major jump from earlier baselines, especially considering some contracts still reflect the older $13.30 rate due to legal disputes.

Wage increases like this can work in favor of those with verified skillsets. When pay floors go up, employers tend to focus on hiring people who bring value quickly. That again supports a model where hiring is based on skill, not degree. Especially in government-related contracts, showing what you can do matters just as much—if not more—than your education level.

 

One Direction, Three Angles

All three reports point to the same outcome: the market now favors people who can prove their ability over those who only offer credentials. Whether it’s rising wages, economic uncertainty, or the boom in STEMM jobs, the direction is clear. Employers want readiness. They want workers who can step in, contribute, and adapt. And they’re willing to pay for it.

It’s Not About Where You Start

Skills-based hiring isn’t just a headline—it’s an opportunity. Whether someone’s just entering the workforce or looking to change direction, the focus on real ability opens up a wide range of jobs. More businesses are moving toward this approach because it works. It creates a faster path from job opening to job filled.

As the demand for capable talent grows, those with practical training and certifications are often first in line. The tools are out there. The need is clear. And in many cases, it’s not the degree—it’s the skill—that makes all the difference.

Looking for your next job opportunity? Explore rewarding careers today with NEXTAFF. Find the perfect fit for your skills and aspirations with our local staffing agency. Learn More About Candidate Services today!

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Meet Shane...

Shane’s journey with Nextaff began in 2019, when he established a successful franchise in the Kansas City metro area. His experience as a Nextaff franchise owner provides prospective buyers with a completely transparent view of the Nextaff Franchise Opportunity. Prior to his time at Nextaff, Shane led large sales teams in the Financial Services and Medical Device industries, further developing his expertise in leadership and business management.

Do you play sports?

Basketball! I was fortunate enough to play college basketball all 4 years and in 2013 we won the NCAA DII National Championship.

What do you love most about your current role?

Getting to know prospective franchise buyers. I love hearing about their goals and dreams they want to achieve through entrepreneurship.

What is your favorite color?

Orange! Yes, it is one of Nextaff’s main colors but it was my favorite before coming to Nextaff. In the franchising world, I’m known as “Orange pants guy”.

Meet Cary...

When it comes to operating a staffing firm, Cary has worn every hat.  From recruiting, to sales, to management, to ownership, he has been involved in every aspect of running a successful staffing business.  He has successfully led three separate companies to the Inc. 500 and Inc. 5000 lists, which puts him in an elite class of staffing entrepreneurship.  Combining that experience with a strong passion for entrepreneurs makes Cary an ideal leader for driving the Nextaff vision. 

Describe yourself in three words.

Loyal, Driven, Creative

Is there a mantra or affirmation you live by?

Do what you said you were going to do.

Do you have a celebrity doppelganger?

Back in the day, it was John Cusak.  “I want my two dollars!”