Everything about work is changing, from what the modern office looks like to how employers assess and recruit candidates. Companies and recruitment teams are rapidly recognising that the old-school resume isn’t as reliable as it once was.

Documents listing job titles and certifications year by year don’t always tell the full story about how successful someone can be in a role. On the other hand, 94% of organisations say that the people they hire based on skills (rather than traditional credentials) often excel in their roles.

But if companies hire based on skills now, how do you ensure your resume still stands out? You need a skills-based resume or “functional resume” that shines a spotlight on your capabilities and potential.

Whether you’re actively searching for a new role or preparing for the future job market, here’s how to build the ultimate skills-focused resume.

Why you need a skills-based resume in 2025

The industry is experiencing yet another period of change. The half-life of professional skills has plummeted to just four to five years, and by 2030, around nine out of ten employees will need new skill sets. This means a candidate’s most valuable currency in the job market isn’t their years of service or last job title, but their constantly expanding skills.

Nearly three-quarters (72%) of employers say they now prioritise skills assessments over traditional resumes. McKinsey also found that hiring for skills is five times more predictive of job success than hiring based on education.

Technology is driving a lot of the change. AI tools and applicant tracking systems (ATS) now scan resumes in milliseconds, looking for core competencies. If your experience isn’t packaged correctly, it might not even pass the first digital gatekeeper. Plus, there are regional pressures shaping hiring strategies.

Meanwhile, Australia’s booming tech sector is creating demand for cross-disciplinary skill sets, and in the US, the labour market has split. High-skill jobs are growing, while middle-skill roles are vanishing. In the UK, automation is expected to impact up to 30% of jobs by 2030. Despite high applicant volume in Canada, 40% of employers struggle to find qualified talent.

All of this means one thing: if you can clearly show what you’re capable of, beyond the boundaries of job titles, you’ll be ahead of the curve.

Core components of an effective skills-based resume

Figuring out how to create a skills-based resume or functional resume can initially be complicated. Most of us are used to structuring these job application documents in a certain way. Fortunately, once you understand what you must include, it’s pretty easy to make the shift.

Here’s what a skills-focused resume should include:

1. A skill summary and professional profile

This is the elevator pitch at the very top of the page. In a few sentences, you introduce to an employer to who you are. Outline your core strengths, your values, and what you bring to the table. This section reads like a confident LinkedIn bio, for example:

“Flexible and outcomes-focused professional with an extensive record in [things you’ve accomplished]. Skilled in translating data into insights, working with automated and AI-driven tools, and experimenting with new platforms.”

Try to sprinkle keywords from the job listing into this section. For instance, if the role mentions “adaptability” or “data literacy,” try to include those words.

2. Skills categories

Skill categories will comprise the core of your new skills-based resume and should be grouped into logical themes. That might include:

• Technical Skills (e.g., Python, CAD software, Google Analytics)

• Soft Skills (e.g., problem-solving, communication, leadership)

• Industry-Specific Skills (e.g., UX design, clinical compliance, agile methodology)

Each group should list specific, measurable competencies. Where possible, show proficiency levels (“Advanced in Adobe Premiere Pro” or “Working knowledge of SQL”) or context (“Used Figma to prototype and test UX flows for a SaaS platform”).

3. Accomplishments

This is where you bring your skills to life by sharing real results and outcomes. Use the “Challenge Action Result” (CAR) method to write your achievement statements, such as:

“Transformed underperforming email campaign (Challenge) by introducing segmentation and A/B testing (Action), leading to a 47% increase in open rates and a 23% boost in conversions (Result).”

Always quantify your results whenever possible. Numbers tell hiring managers you understand what success looks like.

4. Supporting experience

You can still include work history and experience in your new skills-focused resume. Just don’t make it the main focus. A simple list with a job title, company name, dates, and a few statements about what you accomplished in the role should be enough.

Follow this with relevant education and certifications, listed in reverse chronological order. Remember to mention whether you’ve done any recent specific online courses, micro-credentials or bootcamps that make a difference to your proficiency for the role.

5. Optional but valuable additions

Depending on your field and experience, you might want to include:

• A project portfolio: Perfect for creatives, developers and marketers. Link to samples or GitHub repos.

• Professional affiliations: Associations, groups or networks that reflect industry engagement.

• Volunteer work: Especially powerful if it reflects leadership, initiative or skills used in a new context (e.g., leading fundraising, managing events, tutoring in tech literacy).

Overall, your skills-based resume should reflect your evolution, value and potential. It tells employers, “Here’s what I can do, and here’s how I’ve already done it.”

Optimising your skills-based resume for ATS

Once you’ve built a powerful skills-first resume, you need to ensure it reaches the right people. For many job seekers, that means learning how to bypass the ATS (applicant tracking system) that companies use to filter applications.

Most large and mid-sized companies (and an increasing number of small ones) use ATS software to scan resumes before a human ever sees them. These systems sort, filter and rank resumes based on keyword matches and formatting cues. If your resume isn’t optimised for ATS, it might not make it through to human beings even if you’re perfect for the job.

First, you need to know that not every ATS is AI-powered but they are automated. The software looks for alignment with the job description: specific keywords, qualifications and relevant skills. These systems are tricky as they can sometimes filter out the best job applicants.

To avoid that fate:

• Use natural, targeted keywords from the job listing, especially in your skills and professional summary. But don’t keyword-stuff. Instead of writing “project management project management project management,” say something meaningful like “Led cross-functional teams through the full project lifecycle using Agile methodologies.”

• Stick to clean formatting. ATS can struggle with tables, graphics, columns, text boxes and headers/footers. Save the design-heavy version for human readers but always keep a plain text or Word version for ATS upload fields.

• Keep job titles standardised. If you were a “Customer Happiness Hero,” consider renaming it to “Customer Service Specialist” with the original title in parentheses.

• Test your resume with tools like Jobscan, Resume Worded, or SkillSyncer to see how well it matches target job descriptions.

Remember, optimising for ATS isn’t about gaming the bots; it’s about learning how to speak their language while still telling the right story for human employers.

Tailoring your skills-based resume for different situations

One of the strengths of using a skills-based resume to apply for roles is that these documents are highly adaptable. You can adjust the structure and content based on what’s happening for you right now. For instance:

1. If you’re changing careers

Draw attention to your transferable skills. Maybe your retail experience sharpened your communication, leadership and problem-solving abilities. These are all fantastic for project coordination, tech support or HR roles.

Frame your skills in the language of your target role or new industry. Directly address any leap: “After a decade in hospitality, I’m pivoting into UX design where my customer-first mindset and attention to detail are major assets.”

2. If you have an employment gap

Most people will have a gap in their employment history at some point during their career – particularly following the pandemic. You don’t have to ignore the gap to stand out when applying for a new role with a skills-based resume.

Use your resume to focus on what you maintained or developed during that time: online courses, freelance projects, parenting, caregiving or volunteering. These experiences build organisational, empathy, resilience and digital literacy skills.

3. If you’re a recent graduate

If you’ve just finished a course or certification and don’t have much experience in prior roles to mention, lead with your academic projects, internships and extracurriculars.

Did you manage events for a student society, coordinate team projects or build an app for your final-year assignment? That’s an experience worth highlighting. Employers today are looking for emerging skills like data fluency, adaptability and AI literacy. Lean into those.

Remember, different industries focus more on specific skills. In tech focusing on technical proficiencies, collaboration, and agile workflows makes more sense. In creative roles, your innovative nature and portfolio (even if it’s a personal project portfolio) can be valuable.

Getting ready for the era of skills-based hiring

The job market isn’t slowing down and neither are the expectations. More and more employers are focusing on what people can do, not just what’s printed on a certificate. A skills-based resume helps you show your value clearly, especially when your path isn’t perfectly linear.

You don’t need a flawless job history. What matters is being able to show what you’ve learned, how you’ve applied it, and where you’re heading next. The skills-based format gives you the space to tell that story, your way.

Ready to give your resume a refresh?
Watch the free Resume Masterclass Replay for practical, real-world advice on how to make your skills stand out.