UK tech firms lead on skills-based hiring, survey finds

UK technology employers use skills-based hiring more than any other sector, according to research from Michael Page. The study found that 85% of technology organisations assess candidates on demonstrated ability rather than CVs.

That compares with a national average of 66%. At the same time, a shortage of available talent continues to make recruitment difficult in the sector.

The findings suggest a disconnect between hiring methods and labour supply. While technology employers have moved further towards assessing practical skills over qualifications or career history, only 38% of technology professionals are actively looking for a new role, compared with a 50% national average.

As a result, 59% of technology hiring managers said the limited availability of skilled candidates was one of the biggest barriers they faced when recruiting.

The research identified data architecture, cyber security and business change as some of the hardest areas to recruit for. Companies are seeking specialist expertise in these fields, but many professionals with those skills are not actively looking to move.

Hiring shift

Skills-based hiring has gained ground across the labour market as employers try to widen talent pools and judge applicants by what they can do rather than the route they took into work. In technology, the approach appears to have gained stronger traction than elsewhere, reflecting the practical nature of many roles.

The study found that technology hiring managers valued creativity, analytical thinking and communication, along with resilience and adaptability. Those qualities are not always easy to infer from a CV alone, helping to explain the shift towards tests of demonstrated ability.

Technology hiring managers also reported several benefits from the approach. Some 52% said it increased fairness and reduced bias, 51% said it made it easier to match people to current and future skill needs, and 45% said it improved identification of candidate capabilities.

There is also support from jobseekers. Some 61% of technology professionals said they were more likely to apply to an employer that hired on demonstrated skills rather than education or career history, slightly above the 58% national average.

Scarce talent

Even so, the sector's hiring difficulties suggest that changing assessment methods alone is not enough to solve persistent shortages. With fewer than four in 10 professionals actively seeking a role, employers are competing for a relatively small pool of available candidates.

That can raise expectations around pay, leadership, culture and career prospects, especially among candidates with expertise in high-demand areas. Recruiters say this has made it harder for employers to rely on standard vacancy advertising and more important to persuade passive candidates to consider moving.

James Barrett, Managing Director, Technology and Consulting at Michael Page, said: "AI is now used by both candidates and clients throughout the technology hiring process. The issue is not whether it's used, but whether it's used transparently and effectively. The bigger challenge is the scarcity of genuinely high-demand talent, concentrated in areas such as data architecture, business change and cyber security. The standout candidates are those who combine this expertise with resilience and adaptability: people who can lead change and continue delivering while everything around them shifts."

AI in recruitment

The report also suggested that technology employers are relatively comfortable with the growing use of artificial intelligence in job applications and recruitment processes.

Only 18% of technology hiring managers said they found it difficult to tell whether a candidate had used AI in an application, compared with a 28% national average. Half said they would be more likely to hire a candidate they believed had used AI well.

On the employer side, 72% of technology hiring managers said they now use AI in recruitment. The most common uses were reviewing CVs, cited by 37%; compiling interview notes, cited by 34%; and supporting hiring panel decisions, cited by 30%.

The findings suggest a more settled view of AI in technology hiring than in some other sectors, where employers remain more wary of AI-assisted applications. In technology, familiarity with digital tools may be reducing concern about whether candidates use them, while shifting attention to how transparently and effectively they are used.

Barrett said: "Skills-based hiring is one of the most effective ways to identify this talent, and the right recruitment partner can access candidates businesses are unlikely to reach alone. But finding them is only half the challenge. The best candidates already have options, so employers need to present a genuinely compelling reason to move: a clear employee value proposition, credible leadership and an opportunity worth taking a risk on. Get that right, and you do more than fill a vacancy - you build the capability the business will need to navigate whatever comes next."