Hiring for potential, not perfection may be the solution to finding fresh talent in 2025
Companies are continuing to move away from the traditional approach of seeking “perfect” candidates who check every box in a job description, instead embracing a more nuanced strategy: hiring for potential.
The shift in the way businesses search for talent has been happening for some time but has taken on new urgency as competition for the best people has become fiercer.
“Employers would go on tireless hunts for the ‘perfect’ candidate,” said Kareem Bakr, managing director and co-head of North America at global recruiter Phaidon International. “However, as new technology creates roles that have only existed for a short period of time and the fight for top talent remains competitive, employers are thinking outside of the box.”
That strategic pivot is timely as tech, particularly AI, continues to remake the workplace top to bottom. The traditional notion of finding candidates with precise experience requirements has become less relevant in a landscape where job roles evolve constantly, experts say. Rather, organizations increasingly value transferable skills, adaptability and growth potential.
Sandy Ball, chief people officer at the insurer Aspida, emphasizes the importance of such an approach in attracting and retaining younger talent in particular: “Recruitment and retention are the lifeblood of the insurance industry, driving its future success. Building a thriving culture begins with understanding your employee mix—shaping values and practices that resonate with their needs. For early career professionals, connection, purpose and growth are non-negotiables. It’s not just about hiring for skills but recruiting for potential and fostering a sense of ownership. A culture that invests in people ensures they’ll invest back into the mission.”
The benefits of potential
This hiring philosophy offers several key advantages, chiefly that it expands the talent pool significantly.
By considering candidates with diverse backgrounds who demonstrate strong transferable skills, companies can overcome talent shortages and build more dynamic teams. For example, in the exploding data industry, successful candidates are being sourced from fields like architectural design, engineering and construction, as those candidates bring valuable critical thinking skills.
It also promotes better retention, according to Ball, who notes that when companies invest in developing their employees’ skills, they create a more engaged and loyal workforce. “Showing employees at every level that they are a valuable resource will set you apart from the competition and pay off in lower turnover rates,” she said.
Finally, hiring for potential fosters innovation through diversity of thought in an organization, proponents argue. Meaning that teams composed of individuals with varied experience and perspectives tend to develop more creative solutions and achieve better business outcomes.
Novel concept, real results
Hiring for potential is not merely novel — it is showing promise across varied industries.
For example, in renewable energy, companies have successfully transitioned professionals from traditional energy sectors, leveraging their expertise to drive clean energy innovation, according to Bakr. Likewise, manufacturing and healthcare organizations are benefiting from cross-industry talent transfers, where project management and communication skills prove valuable across different contexts.
“Adopting this hiring approach allows employers to mold new hires into the ‘perfect’ employee, rather than spending time breaking and rebuilding habits of a candidate with extensive prior experience,” Bakr said.
Still, prioritizing potential over experience should be weighed carefully against an organization’s specific context and needs, according to best practices developed by employment service LMA Recruiting.
At the end of the day, there is not a binary choice between experience and potential, the company advises. Rather, a hiring strategy should align with a whole range of factors, including the specific requirements for a role, long-term organizational goals and the ability to support an employee’s development.
Still, embracing the concept, it stresses, can mean “transformative outcomes for your organization.”