The recruitment landscape in the Information Technology (IT) sector has undergone a major transformation due to rapid technological advancements, digitalization, and changing workforce expectations. Traditional degree-based hiring methods are increasingly being challenged by skill-based recruitment practices that prioritize practical competencies, technical expertise, and job readiness. This study aims to compare skill-based and degree-based hiring approaches in the IT sector and evaluate their impact on employee performance, recruitment effectiveness, and future workforce development.

The research adopted a descriptive and analytical research design using both primary and secondary data. Primary data was collected from 100 respondents including IT professionals, students, job seekers, and HR professionals through a structured questionnaire. Statistical tools such as percentage analysis, Chi-square analysis, and correlation analysis were used for interpretation.

The findings reveal that a majority of respondents strongly support skill-based hiring practices. Around 60% of respondents stated that skill-based hiring is predominantly adopted within their organizations, while 70% believed that skill-based hires demonstrate superior workplace performance. Correlation analysis also indicated a strong positive relationship between skill-based hiring and employee performance. The study further identified that organizations are increasingly using structured assessments such as coding tests, project evaluations, and case analyses during recruitment.

The research concludes that skill-based hiring is becoming the preferred recruitment approach in the IT sector because it improves employee productivity, job readiness, and organizational efficiency. However, the study also suggests that a hybrid model combining both educational qualifications and practical skills may provide balanced recruitment outcomes. The study recommends that organizations, educational institutions, and job seekers focus more on continuous learning, skill development, and industry-oriented training to meet future workforce requirements.