Why Australia’s Talent Crisis Demands a Rethink on Qualifications

It’s a familiar paradox in Australian recruitment: employers say they’re hiring for skills, but their processes and systems are set up for qualifications.

Whether it’s an applicant tracking system set to auto-reject anyone without a degree, or job descriptions that default to ‘tertiary qualification required,’ the reality is that many organizations are unintentionally sidelining talented candidates who have all the right capabilities - they just don’t have the right paperwork.

This disconnect is particularly problematic at a time when Australia faces one of the most significant talent shortages in decades. With a national unemployment rate hovering around 3.7%, and the Federal Government’s Annual Jobs and Skills Report describing the skills shortage as the worst since the 1960s, businesses simply cannot afford to screen out potential on the basis of credentials alone.

And yet many organizations still do. Routinely.

At WorkPro, we’ve long advocated for a more inclusive, skills-based approach to hiring. Our survey of over 2,400 Australian job seekers revealed a striking pattern: 59.4% of respondents reported success in roles where they initially lacked the formal qualifications or experience required. 

Clearly, some organisations are already reaping the rewards of skills-based hiring, demonstrating that when employers take a chance on candidates’ attitudes, transferable skills, or growth potential, they’re frequently rewarded.

Yet despite these successes, many companies remain slow to change, still relying heavily on qualifications rather than capabilities. These so-called mismatched hires frequently become standout performers, proving the problem isn’t the people. It’s the process.

So, how did we get here?

Many of today’s hiring systems were designed in an era when degrees were a rare proxy for general capability. But in 2025, that assumption no longer holds. University attendance has skyrocketed, knowledge is more accessible than ever, and career paths are far less linear.

Yet qualifications continue to act as an artificial gatekeeper. This not only slows down time-to-hire but also reinforces bias, reduces workforce diversity, and overlooks the value of lived experience and alternative learning pathways.

Screening out candidates based on education alone is inefficient, expensive, and nonsensical. Attrition remains a costly problem for Australian businesses. According to industry estimates, replacing an employee costs between $25,000 and $40,000, or more than 30% of the individual’s salary. If you’ve hired someone because they ticked boxes rather than brought real-world skills, you’re likely to see them exit sooner.

By contrast, candidates hired for fit and potential tend to be more engaged, more loyal, and more likely to grow with the business. They may not arrive ready-made, but they often stay longer and deliver more.

In order to shift to a skills-first hiring model, we have to broaden the lens through which we evaluate candidates and remove unnecessary barriers that prevent talent from entering and thriving in the workforce.

Here are five practical steps employers can take:

1. Rewrite job descriptions

Replace rigid qualification requirements with specific skills, outcomes, and behavioral competencies. Focus on what success in the role looks like, not where someone went to school.

2. Refine your screening tools

Audit recruitment software and filters. Are you automatically rejecting candidates without degrees, regardless of their experience or performance? If so, you’re likely losing exceptional talent.

3. Use practical assessments

Instead of assuming capability, test for it. Work trials, scenario-based interviews, and project simulations can offer more insight than a line on a resume ever could.

4. Prioritize transferable skills

As our survey found, over 60% of job seekers have been offered roles outside their previous industry. Recognize that communication, leadership, and adaptability often transcend sectors.

5. Champion internal mobility

Sometimes your best candidate is already on the payroll. Make it easy for employees to apply for stretch roles, even if they don’t have a conventional background.

Our research also shows that today’s job seekers are making faster decisions and expecting more transparency. Nearly half (44.4%) said they wouldn’t wait more than a week to hear back after a second interview before moving on. And they’re not just asking about the role - they want to know about company culture, salary ranges, and career development opportunities.

HR leaders need to stop relying on outdated proxies for performance. A degree may suggest a candidate once passed a set of exams, but it doesn’t tell you how they’ll handle conflict, collaborate with others, or respond to change.

The good news? The organizations willing to rethink their approach are already reaping the benefits. They’re discovering overlooked talent, building more resilient teams, and strengthening their employer brand in the process.

If you say you value skills, make sure your systems, processes, and people reflect that. Because the talent is out there. You just need to stop filtering it out.

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Tania Evans is the founder and CEO of WorkPro, a specialist HR technology SaaS designed to reduce friction and candidate drop-out during hiring and in the employee lifecycle. Under Tania's leadership, WorkPro has achieved several industry firsts, including becoming accredited by CrimTrac (now ACIC) as a police check agency in 2010 and the first Australian private company to integrate with the Department of Immigration (now Home Affairs) work visa database in 2011.  Today, WorkPro continues to lead in the pursuit of rapid work readiness for job seekers in a challenging legislative and competitive landscape. By leveraging contemporary technology, WorkPro continues to innovate to make it possible to quickly match job seekers and candidates with employers to fulfil productivity demands and job seekers’ work preferences, while the candidate is able to securely port their digital profile between employers to reduce time and effort to hire in the future.