Employers across Australia are shifting their hiring priorities, favoring hands-on experience over formal university degrees, according to a recent survey by Indeed. The findings highlight a significant change in recruitment strategies, with both employers and jobseekers acknowledging the growing importance of practical skills in the workplace.

The survey revealed that 55% of employers and 67% of employees believe on-the-job experience is more valuable than a university qualification when assessing job candidates. As a result, a majority of employers are adjusting their recruitment processes, prioritizing discussions about an applicant’s work experience rather than academic credentials—a move supported by 70% of jobseekers.

Sally McKibbin, a career expert at Indeed, described this trend as a "pivotal shift" in the Australian hiring landscape.

"Employers are increasingly recognising that real-world experience can be more telling than formal qualifications when it comes to a candidate’s ability to perform on the job," McKibbin said. "Higher education remains valuable, but the evolving job market demands a more flexible approach to hiring."

This shift comes amid growing concerns about the lack of "quality" candidates in the job market. Employers define a quality hire as someone who brings fresh capabilities and perspectives to the team (54%) and demonstrates a strong ability to learn and adapt through upskilling (54%).

To bridge this talent gap, businesses are implementing new strategies. The report found that:

• 76% of employers have either revised or plan to revise their learning and development programs to help new hires build essential skills on the job.

• A third of employers believe prioritizing skills-based hiring will lead to a stronger applicant pool.

• Employers expect a skills-first approach to drive performance (33%) and create more equitable job opportunities (29%).

McKibbin emphasized that embracing a skills-first hiring model benefits both businesses and jobseekers.

"A skills-first approach fosters inclusivity and creates opportunities for individuals with great potential but limited access to higher education," she said. "By focusing on practical experience and growth potential, companies can tap into a broader talent pool and bring in individuals who can contribute from day one."

As businesses continue to evolve their hiring strategies, experience-driven recruitment may become the new standard, reshaping the way talent is recognized and nurtured in Australia’s job market.