Skills-Based Hiring Versus Credential-Based Recruitment: A Contemporary Analysis of Talent Acquisition Approaches in The Manufacturing Sector in Rivers State, Nigeria

The global discourse on talent acquisition has witnessed a decisive pivot in recent years, with organizations in both developed and emerging economies progressively questioning the primacy of formal academic credentials as the principal basis for hiring decisions. Skills-based hiring which evaluates candidates on demonstrated competencies, technical proficiencies, and job relevant capabilities rather than degree qualifications has emerged as an evidence-backed alternative to conventional credential-based recruitment. In Nigeria's manufacturing sector, where persistent skills gaps, credential inflation, and high youth unemployment coexist with growing demand for technically proficient workers, the choice between these two recruitment philosophies carries significant consequences for organizational performance, workforce quality, and inclusive economic development. This study investigates the impact of skills-based hiring on employee performance outcomes in the manufacturing sector in Rivers State, focusing on competency-based assessment practices, practical skills evaluation, and job-fit orientation strategies. Drawing on Signaling Theory and the Resource-Based View, the study adopted a cross-sectional survey design. Primary data were collected from 244 employees and HR managers across three prominent manufacturing firms in Port Harcourt using a validated structured questionnaire. Simple linear regression was employed to test three null hypotheses. Findings indicate that competency-based assessment practices (β = 0.503, R² = 0.336, p < 0.001), practical skills evaluation (β = 0.519, R² = 0.351, p < 0.001), and job-fit orientation strategies (β = 0.487, R² = 0.319, p < 0.001) each exert statistically significant positive effects on employee performance outcomes. The study provides empirical grounding for repositioning talent acquisition in the Rivers State manufacturing sector toward skills-centric recruitment models that prioritize functional competency over formal academic credentials.