SKILLS-BASED HIRING VS. DEGREE-BASED HIRING: A COMPARATIVE STUDY BASED IN HARYANA

Abstract

Purpose: The study explores the comparative return on investment of skill-based hiring and degree-based hiring in various kinds of industries.

Methodology: In this study, we used both primary data (a structured questionnaire plus oral investigation) and secondary data (various journals and reports). Our primary data is based on 30 respondents from different working sectors in Haryana (India). We used a mixed approach of survey analysis, content analysis and comparative analysis.

Findings: This study finds that most companies now prefer skill-based hiring over degree-based hiring. However, in some cases where a degree is mandatory by law, degree-based hiring wins. For example, to work as a professor, one requires a degree; teaching skills alone are not enough for this role. At the same time, we found that the skill-based hiring system is preferable in the IT and digital media sectors.

Practical Implications: This study is helpful for prospective employees to understand the actual requirements of employers, and for employers or organizations to improve their recruitment strategies.

Originality/Value: The study provides insight into the booming era of skill-based hiring alongside degree-based hiring to help understand modern recruitment strategy. It also offers recommendations for entrepreneurs to prepare the right recruitment strategy for retaining the right employees.