Skills Based Hiring: How to write competency-based job ads

Do we really still need traditional job ads? For decades, they followed the same pattern: a long list of requirements dominated by degrees, years of experience and specific job titles. But does this still make sense today? Recent studies show that this approach often puts off more qualified talent than it attracts. It's time for a paradigm shift.

The concept of skills-based hiring or skills-based recruiting is rapidly gaining in importance. Instead of setting rigid criteria, the focus is on the actual abilities and potential of applicants. Companies such as IBM (Ginni Rometty – ‘Skills First’) and Google have already started to remove academic degrees from many job ads. The reason is obvious – skills count for more than certificates.
Skills-based job ads are therefore fundamentally different from traditional ones: they focus on a person's skills and abilities, as well as the contribution they can make to the company. But what does this mean in practice? How can job ads be written to attract the right talent?

In this article, we'll explore the new way of job storytelling. We'll show you how to prioritise skills over titles, break down unnecessary barriers, and optimise your job ad to attract the best candidates. You'll also learn what mistakes companies repeatedly make when it comes to talent.
Ready for a new perspective on job ads? Then let's dive right in.

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Focus on skills instead of degrees

Imagine an experienced software developer applies for a job at your company. He has ten years of experience, manages complex IT projects and has mastered programming languages at an expert level. But there is one flaw in his CV: the formal computer science degree. Would you still hire him? Or, in other words, was this candidate already rejected in advance because of this?
This is where skills-based recruiting comes in. Skills count for more than certificates. And this will soon be the norm. But how can this change be implemented in practice?

Why companies should move away from rigid criteria

Many job ads still explicitly demand academic qualifications, even though they often play no direct role in the daily work.

• A marketing expert with a successful social media strategy but without a specific university degree often has little chance.  
• An IT specialist who has implemented complex software projects over many years may be rejected due to a lack of certificates.  

This shows that the narrower the requirements profile, the smaller the chance of finding the right talent. As a result, companies miss out on the opportunity to attract candidates with practical skills and unusual career paths. You should also consider what skills your company can promote, for example, on-the-job training.

Job storytelling: how skills come into focus

Instead of excluding candidates with rigid criteria, companies should formulate their job ads in a way that applicants recognise their own suitability. This can be achieved through job storytelling:

‍Instead of: ‘Master's degree in communication sciences and five years of experience required.’
‍Better: ‘Do you love developing creative campaigns that inspire your target audience? Have you already built successful social media strategies and used storytelling to win customers? Then you could be a perfect fit for our team.’

This approach helps applicants to see themselves in the role – regardless of formal qualifications.

Clearly distinguish must-have vs. nice-to-have skills

Even though this point seems obvious, it is often overlooked in practice. To formulate a skills-based job ad, companies must clearly distinguish between essential and desirable skills:

• Must-have: skills that are essential for a position.  
• Nice-to-have: knowledge that is advantageous but not absolutely necessary.  

Example: 
‍Must-have: experience with performance marketing campaigns (e.g. Google Ads, Meta Ads).
Nice-to-have: knowledge of Adobe Premiere for creating advertising videos is desirable. 

This differentiation lowers the hurdles for applicants and increases the application rate – especially among candidates who would otherwise hesitate.
Before we take a closer look at what a structured job ad looks like and which elements are critical, let's see how skills-based hiring is currently being used.

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Best practices from the economy

Some companies are already relying more on skills-based recruiting in order to be able to react more flexibly to market changes and skills shortages. Let's look at three specific examples: Unilever, IBM and Siemens.

Unilever: tasks instead of job titles

Unilever has recognised that the traditional focus on rigid job titles can restrict internal mobility. Instead, the company views each role as a collection of skills. This approach makes it possible to deploy talent more flexibly and promotes internal mobility by allowing employees to be assigned to different projects and positions based on their skills. In addition, Unilever has set itself the goal of equipping its employees with future-oriented skills by 2025 to prepare them for upcoming challenges. 

IBM: ‘New Collar’ initiative

IBM has developed an approach with the ‘New Collar’ initiative that focuses on practical skills rather than formal academic qualifications. As part of this programme, IBM offers training programmes and internships that aim to promote relevant technical skills for career changers, regardless of their educational background. One example of this is the IBM Apprenticeship Program, which offers participants the opportunity to gain practical experience while acquiring new skills. Through this initiative, IBM has been able to build a more diverse workforce and counteract the shortage of skilled workers in technical fields.

Siemens: AI-supported skill matching

Siemens uses artificial intelligence (Eightfold) to evaluate candidates based on their skills rather than relying primarily on CV data. To do this, they use an advanced matching algorithm that not only analyses applicant profiles using keywords but also interprets their skills intelligently. The system also recognises related skills and can capture these independently of language. This enables a precise match between the qualifications of candidates and the requirements of open positions, making the selection process more efficient and accurate. The company is thus accelerating its recruiting process and improving skill matching between talent and open positions.

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The structure of a skills-based job ad

A well-structured job ad is half the battle in attracting the right talent. It should not only clearly state the desired skills, but also provide a realistic insight into the day-to-day work. First impressions count – and this is precisely where it is decided whether a potential applicant will continue reading or click on to the next ad.

Clear and appealing job title

The job title is the first point of contact between the candidate and the company. Vague or overly creative descriptions can put potential applicants off because they don't immediately recognise what the job is about. A clear, standardised description makes it easier to find the job ad in search engines and on job portals and prevents misunderstandings.

Best practices for job titles:

• Be precise and transparent: Instead of ‘marketing rock star’, it's better to use ‘performance marketing manager’.
• Use common terms: Job titles should be established in the industry and easy to find on platforms like LinkedIn.
• Indicate seniority and specialisation: ‘Senior Data Analyst’ instead of just ‘Data Analyst’ or ‘Cloud Security Engineer’ instead of ‘IT Security Expert’.
• Avoid internal jargon: ‘Product Ninja’ or ‘Coding Wizard’ are creative titles, but often misleading for applicants.

The first paragraph – Why should someone apply?

Instead of starting with requirements right away, the introduction should highlight the key benefits and special features of the position. This first section determines whether the reader continues reading or jumps off.

‍Important components of the introduction:

• A clear message: Why is this role attractive? What makes it different from others?
• An authentic insight into the corporate culture: What are the company's values?
• Personal address: Directly engage the reader to spark curiosity.

Example: ‘Are you looking for a challenge in an innovative company (explain why it is innovative) that promotes personal responsibility and creativity? We offer you not only exciting projects in the field of XY, but also a dynamic environment in which you can fully develop your strengths.’

Language and tonality in the job ad

The language you use influences how candidates feel addressed. Language that is too formal or stiff can be off-putting, while a friendly, accessible tone lowers the inhibition threshold.

What characterises good language?

• Clarity: Avoid unnecessarily complicated terms and jargon.
• Authenticity: The ad should fit the company – is the culture rather relaxed or traditional?
• Inclusive language: Choose wording that appeals to all applicants (‘Reinforcement for our team’ instead of ‘young, dynamic employees’).
• Direct address: ‘You will work on exciting projects’ instead of ‘The job holder is responsible for...’.

Practical example: ‘As a software developer with us, you will work in an agile team to develop innovative solutions (give examples) that inspire our customers. We value independent work, but also cooperative exchange and continuous development.’

Tasks and responsibilities

Many job ads make the mistake of formulating vague or meaningless tasks. However, candidates want to know exactly what to expect and what their contribution to the company will be.

‍What makes a good job description?

• Specific: Instead of ‘You will work in marketing,’ it's better to say ‘You will develop and optimise Google Ads campaigns to generate leads.’
• Focus on impact and results: Don't only mention activities, but emphasise the added value (‘You will help to increase our reach on social media by 30%’).
• Realistic requirements: Job descriptions that are too ambitious or too broad can be off-putting.

Example: ‘You will be responsible for analysing performance data and using it to develop targeted optimisation strategies to make our digital campaigns even more effective. You will work closely with the design and content team to implement creative solutions.’

Formulate requirements correctly

Overly ambitious or unrealistic lists of requirements are a common hurdle in job ads. Instead of a long list, a clear distinction should be made between must-have and nice-to-have skills.

‍Best practices:

• Prioritise essential requirements: What is really necessary to fulfil the role?
• Take into account willingness to learn: Instead of ‘5 years of experience in Python required’, it's better to write ‘Experience in Python or comparable programming languages, willingness to undertake advanced training desired’.
• Don't overestimate soft skills: ‘Ability to work in a team’ or ‘Hands-on mentality’ say little – it's better to formulate specific expectations (‘You will coordinate projects with various departments independently’).

Practical example: ‘Experience with social media ads (especially LinkedIn and Facebook), analytical skills and an eye for data-driven marketing. Experience with Adobe Photoshop is an advantage, but not required.’

The ideal skills-based job ad

A well-thought-out job ad makes it easier for applicants to see themselves in the role and get excited about the company. Clarity, authenticity and a focus on real skills rather than formal requirements are the key factors.

‍By following these principles, you ensure that the right talent feels addressed – while also increasing the quality of the incoming applications. A good job ad is not only a recruiting tool, but also a business card for the company.

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Common job ad mistakes and how to avoid them

A poorly worded job ad discourages qualified talent and increases the number of unsuitable applications. The most common mistakes are unclear or too many requirements, impersonal language or exaggerated titles. In this section, we show how companies can avoid these pitfalls and instead write targeted, appealing and successful job ads.

Listing too many requirements

Many companies try to find the ‘perfect’ talent by including a long list of requirements in the ad. However, this can be off-putting, especially for qualified but not 100% matching applicants. Research shows that women are only likely to apply if they meet at least 90% of the requirements, while men are more likely to apply if they meet 60%. A catalogue of requirements that is too detailed can thus unintentionally limit the diversity of applications. Based on our experience, there should be a maximum of 8 to 10 skills per position.

Solution:

• Distinguish between must-have and nice-to-have skills: Does an applicant really need to have experience with all the tools mentioned, or is a solid understanding enough?
• Focus on essential core skills: Instead of ‘5 years’ experience in Python, Java, JavaScript, C++’, it's better to write “Experience in one or more programming languages, preferably Python or Java”.
• Communicate flexibility: If on-the-job learning is possible, this should be explicitly mentioned.

Unclear or exaggerated job titles

Job titles like ‘customer happiness manager’ or ‘growth hacker’ sound modern, but they can be confusing for applicants and search engines alike. Candidates search using established terms, and creative titles can make it harder for them to find your ad.

‍Solution:

• Use industry-standard terms: Instead of ‘code ninja’, use ‘front-end software developer (m/f/d)’.
• Consider search engine friendliness: Use keywords that candidates actually enter on job portals.
• Clarify seniority: ‘Senior Data Analyst’ instead of just ‘Data Analyst’ if you are explicitly looking for an experienced professional.

Lack of transparency regarding corporate culture

Many job ads come across as a one-page catalogue of demands: ‘We are looking for an XYZ with the following requirements...’. In doing so, companies often forget why a talent should apply to them in particular.

‍Solution:

• Present company values and mission: What makes working there special?
• Describe the working environment: Does the company offer remote work, flexible working hours or training budgets?
• Provide team insights: If possible, include a short statement from a team member or describe how the team works together.

Practical example: ‘We are a fast-growing tech start-up (X% in the last 12 months) that works with the latest technologies such as X, Y and Z. Our team embraces a culture of open communication and relies on independent work. Are you looking for a flexible environment where you can implement your ideas directly? Then you've come to the right place!’

Impersonal or unattractive language

Generic language that fails to appeal to the emotions can prevent candidates from identifying with the ad. If a job ad is full of empty phrases, it comes across as interchangeable and uninviting.

‍Typical mistakes:

• Phrase-based statements: ‘We are looking for a dynamic team player with a hands-on mentality’ says little.
• Avoiding direct address: ‘The ideal candidate should...’ sounds distant.
• Passive wording: ‘You will be responsible for managing projects.’ Sounds impersonal.

Solution:

• Use direct and active language: ‘You will develop innovative marketing strategies independently and implement them together with your team.’
• Use storytelling: Describe what a typical day in the job would be like.
• Show authenticity: show that it is a real team of real people.

Practical example: ‘With us, you can expect not only a job, but a mission: together we are transforming the way companies organise their IT projects (give an example). We are looking for a creative mind who thinks primarily strategically and is enthusiastic about using both strengths to drive our brand awareness!’

No clear expectations for the application process

Another obstacle for applicants is an opaque or overly complicated application process. If it's not clear what to expect, it can create uncertainty and deter them from applying.

‍Solution:

• Clearly communicate what the application process looks like: Will there be a telephone interview? Is there a test assignment?
• Be specific about the time frame: ‘We will contact you within five working days of receiving your application.’
• Make the application process easy: If a cover letter is not required, this should be explicitly stated.

Example: ‘Our application process is quick and straightforward: 1) Short telephone interview with our HR team, 2) Technical interview with your future team, 3) Final decision. You will receive feedback from us within a week.’

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Conclusion: A good job ad not only attracts applications – it inspires them.

Avoiding these mistakes and applying our structure ensures that the right talent is attracted. Clear and unambiguous language, an authentic presentation of the company and a realistic and focused catalogue of requirements help to make the application process more targeted.
In short, a good job ad is clear, concise and inspiring – it is the first opportunity to identify, engage and retain potential team members. Think of it as love at first sight for your organisation.