Skills, AI and work-life balance reshape India’s hiring landscape: Michael Page report

Michael Page’s Talent Trends India 2026 report finds employers increasingly prioritising skills over qualifications, AI becoming integral to recruitment processes, and work-life balance emerging as a key factor influencing job moves and talent retention.

The Indian hiring market is undergoing a significant transformation as employers place greater emphasis on skills, artificial intelligence becomes deeply embedded in recruitment, and professionals increasingly prioritise work-life balance when evaluating career opportunities, according to Michael Page’s Talent Trends India 2026 report.

The report, based on insights from a global survey of 60,000 participants across more than 170 countries, identifies these three factors as the defining trends shaping the future of work in India.

According to the findings, hiring decisions are gradually shifting away from traditional markers such as educational qualifications and career history. Nearly 39% of hiring managers said they now prioritise skills over credentials when evaluating candidates, while 77% of professionals indicated they are more likely to apply for jobs where skills are highlighted as the primary requirement.

Skills-first hiring gains momentum

As organisations grapple with persistent talent shortages, the ability to identify candidates with the right capabilities has become a growing challenge. The report found that the lack of required skills remains the biggest recruitment hurdle for employers.

This has accelerated interest in skills-based hiring models. Nearly all employers that have adopted such approaches reported positive outcomes, including improved identification of talent and better alignment between candidate capabilities and business needs.

Despite the growing momentum, traditional hiring practices remain influential. Around one-third of employers still place greater importance on academic qualifications and linear career progression, while many continue to balance skills and credentials in recruitment decisions.

AI becomes central to recruitment

Artificial intelligence is playing an increasingly prominent role across the hiring ecosystem. The report noted that regular use of generative AI among Indian professionals has risen sharply over the past two years, reaching 73% in 2026.

AI is also becoming commonplace in recruitment processes. More than three-quarters of job applicants now use AI tools to tailor applications, while hiring managers increasingly rely on the technology to create job descriptions and communicate with candidates.

However, the report suggests that as AI-generated applications become more sophisticated, employers are placing greater emphasis on interviews, practical assessments and real-world problem-solving exercises to evaluate genuine capabilities.

Work-life balance emerged as another major priority for professionals. Alongside job satisfaction, it ranked among the most valued aspects of employment, ahead of many traditional career considerations. Concerns about losing flexibility or balance were found to be a stronger deterrent to changing jobs than compensation or career progression.

Nicholas Kirk, CEO, PageGroup, said, “The world of work continues to shift at pace. Markets remain unsettled, expectations are evolving, and technology is fundamentally reshaping how employers and candidates connect. Our latest Talent Trends report reinforces that hiring today is more complex and more competitive than ever—but it also reveals where the real opportunities lie.

Globally, 64% of professionals are now using GenAI at work, with India leading at 73%. Yet what genuinely matters is cutting through the hype to focus on what really counts: skills, clarity and good judgement. We’re seeing this shift in action - 77% of Indian candidates are more likely to apply for a role when the job description prioritises skills over credentials, compared to 62% globally. This skills-first approach creates stability and confidence, even in unpredictable times, and represents a fundamental evolution in how talent and opportunity find each other.”

Adding to the findings, Nilay Khandelwal, Senior Managing Director – India & Singapore, Michael Page, said, “Hiring today is more complex, more competitive and more human than ever. contracting and agile workforce models are becoming an increasingly important part of workforce planning. With continued uncertainty, many organisations particularly MNCs, are leaning on contract and interim talent to stay flexible, respond quickly to change and access specialist skills when they’re needed most”.

The report concludes that successful hiring strategies will increasingly depend on combining technology-driven efficiency with human judgement, while fostering transparency, flexibility and skills-focused recruitment practices.