One way companies are changing their approach is by focusing more on skills, rather than qualifications like college degrees or previous work experience. How skills-based hiring worksHiring based on skills can have a wide range of benefits both for workers and employers, Duke said. According to Workday's Pell, skills-based organizations are "far more likely to outperform their traditional counterparts" when it comes to innovation, efficiency, and adaptability. Another major benefit for both workers and employers is that skills-based hiring can be vital for building a more diverse workforce. Companies that focus on skills also often provide development opportunities to their employees, Pell said.

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Persons: Xavier Lorenzo, Sue Duke, Duke, Daniel Pell, Pell, Workday's Pell Organizations: CNBC, HR, Duke, Companies