Skills-Based Hiring in Finance: Building Future-Ready Teams

Finance functions are at the heart of organisational performance, yet they face unprecedented challenges. From digitalisation and regulatory complexity to growing skills shortages, finance teams are being asked to deliver more with less. Traditional recruitment methods, which often emphasise degrees, professional titles, or years of experience, are no longer sufficient in a world where agility, data literacy, and analytical capability are just as critical as technical qualifications.

In response, many finance leaders are exploring skills-based hiring, a strategy that evaluates candidates on their practical competencies rather than relying solely on academic credentials or tenure. For organisations hiring now or in the future, this approach offers a way to address talent gaps, strengthen resilience, and future-proof teams.

What is Skills-Based Hiring?

Skills-based hiring focuses on assessing whether candidates have the capabilities required to perform effectively in finance roles. Rather than filtering candidates by degree or accountancy body membership alone, organisations prioritise demonstrable skills such as financial modelling, audit compliance, data analysis, or systems knowledge.

For example, a management accountant might be evaluated on their ability to use ERP systems such as SAP or Oracle, build robust forecasts in Excel or Power BI, or interpret IFRS standards accurately, regardless of whether they followed a traditional Big 4 training route. This does not place value solely on whether talent is ACA, ACCA, or CIMA qualified, but it acknowledges that technical and digital finance skills can be gained through varied career paths.

Why are Finance Teams Turning to Skills-Based Hiring?

Finance departments are experiencing acute skills pressures. The Association of Chartered Certified Accountants highlighted that 90% of finance leaders globally are concerned about a shortage of people with the right skills, particularly in areas such as sustainability reporting, risk management, and technology adoption. 

At the same time, the profession is being reshaped by automation and digitalisation. According to the World Economic Forum’s Future of Jobs Report  demand for skills in big data, AI, and digital platforms will continue to rise sharply, while routine accounting tasks are increasingly automated. Finance professionals are expected to combine core technical expertise with competencies in data analysis, communication, and strategic decision-making.

This is creating a mismatch between traditional hiring practices and the evolving needs of the function. By adopting a skills-first approach, finance leaders can access wider talent pools, identify candidates with transferable skills, and build teams capable of meeting both current and emerging demands.

The Advantages for Finance Professionals

For finance leaders, the benefits of skills-based hiring are tangible. Firstly, it widens access to talent. Removing rigid degree filters allows organisations to consider candidates with strong analytical or technology skills who may have built their careers outside traditional accountancy routes. This is particularly valuable in finance functions that require hybrid skillsets, for example, combining accounting knowledge with advanced data analysis.

Another benefit lies in the positive impact on diversity. Looking forward, a skills-first approach can accelerate progress on inclusion. Shifting the emphasis from qualifications to capabilities reduces bias in hiring and allows talented professionals from non-traditional backgrounds to thrive, ultimately creating a more representative and future-ready finance function. A skills-based approach improves alignment with organisational goals. A finance director seeking to strengthen scenario modelling, sustainability reporting, or audit readiness can hire directly for those competencies, rather than assuming years of post-qualification experience automatically equates to proficiency.

Finally, retention and performance often improve. Research by LinkedIn found that organisations adopting skills-first practices report higher levels of employee engagement and productivity, particularly where employees feel their capabilities are valued over their job titles.

Bridging the Gap Between Tradition and Transformation

Implementing skills-based hiring in finance does present challenges. Many finance roles are still tied to statutory requirements or regulated qualifications, meaning professional certifications such as ACA, ACCA, or CIMA will remain essential in some contexts. The challenge lies in balancing regulatory obligations with broader assessments of capability. Measuring skills objectively can also be complex. For instance, evaluating a candidate’s ability to produce accurate financial statements under IFRS requires structured case studies or simulations. Similarly, assessing data analysis skills in Excel, Python, or Power BI must go beyond self-reported proficiency.

There is also cultural resistance. Many boards and CFOs still value traditional training pathways, particularly Big 4 backgrounds, as signals of quality. Overcoming these biases requires both evidence and education to demonstrate that non-traditional candidates can perform just as effectively.

Implementing Skills-Based Hiring in Finance

Adopting a skills-first approach within finance functions involves several practical steps, redesigning job descriptions is essential. Instead of defaulting to “ACA qualified with five years’ PQE,” job profiles should specify competencies such as “ability to design and implement financial controls” or “experience in regulatory reporting frameworks.” Developing structured skills frameworks can help. For example, roles can be mapped against technical competencies (e.g. IFRS knowledge, audit methodology, tax compliance), digital skills (ERP systems, RPA tools, analytics platforms), and behavioural attributes (stakeholder communication, problem-solving, ethical judgement).

Assessment methods need to evolve accordingly. Finance teams may deploy work simulations, case studies, and scenario-based interviews to test technical accuracy and problem-solving. Psychometric assessments can complement these, evaluating softer skills such as attention to detail and resilience under pressure.

Leading organisations are already moving in this direction. KPMG’s 2023 Finance Transformation survey  emphasised the need for new skills in digital reporting and predictive analytics, while firms like PwC are piloting skills-based assessments for entry-level hires to broaden access and diversify the profession.

Finance and the Future of Work

The finance function is shifting from a transactional back-office role to a strategic partner in decision-making. This transformation requires professionals who can combine accounting rigour with digital fluency, commercial acumen, and strategic insight.

As Deloitte’s Human Capital Trends notes, finance teams must embrace a boundaryless approach to skills, drawing talent from diverse backgrounds and continually reskilling. Skills-based hiring will be central to this evolution, enabling finance leaders to build adaptable teams that can respond to new technologies, regulatory demands, and stakeholder expectations.

Looking Ahead

Skills-based hiring offers finance leaders a practical, future-focused response to some of the sector’s most pressing challenges. By shifting emphasis from qualifications and tenure to demonstrable competencies, organisations can widen their access to talent, drive diversity, and strengthen alignment with strategic goals.

While professional certifications will remain critical in regulated areas, embedding a skills-first mindset ensures finance teams can adapt to digitalisation, evolving regulation, and new business models. For finance directors, assistants, and accountants alike, the shift represents an opportunity: to focus on what matters most, the skills needed to deliver value today and resilience for tomorrow.