Australian employers are shifting towards skills-based hiring, prioritizing demonstrated abilities and cultural fit over traditional CVs, qualifications, and previous employers, according to Michael Page's latest Talent Trends research.
The Shift to Skills-First Hiring
The survey found that 25% of Australian employers now prioritize demonstrated skills over career history and education, while 61% give equal weight to both. Around one in six plan to adopt a skills-first approach. Among employers already hiring this way, 97% reported clear benefits, with half saying it helps identify ability more effectively.
Jobseekers Respond
More than half of Australian candidates are more likely to apply for a role when the job ad leads with skills rather than credentials. This change is partly driven by AI: 67% of jobseekers use AI to improve their CVs, and 34% of hiring managers can't reliably tell if an application was written by a human.
The CV is No Longer Enough
David George, Senior Managing Director at Michael Page Australia, explains: "For a long time, a stint at a big-name firm was shorthand for quality. That's no longer the case. The question has shifted from 'who did you work for' to 'what did you learn there, and what can you do with it?'" Employers now focus on judgment, communication, and adaptability.
Interviews Gain Importance
As CVs become uniformly perfect, interviews are doing the heavy lifting. "The traditional job application we once knew is now over," says George. "That's where real personality shows up."
Wellbeing Over Promotion
The report also reveals that 61% of Australian workers would turn down a promotion with a salary increase to protect their wellbeing—above the global average of 50%. Additionally, 60% would start looking for another job if required to spend more time in the office.
Hiring Response
To widen applicant pools, employers should rewrite job ads around expected outcomes rather than formal titles, and test decision-making through scenario exercises and structured interviews. Salary transparency and better onboarding are also key factors for attraction and retention.
The Talent Trends report surveyed over 60,000 professionals across 36 markets, including nearly 2,500 in Australia.
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