Abstract: Organizations across sectors are confronting a dual crisis: unfilled positions despite millions of qualified individuals being systematically excluded from opportunities based on credential requirements that fail to predict job performance. This article examines how skills-based hiring practices dismantle structural barriers in talent acquisition while addressing critical organizational capability gaps. Drawing on empirical research and organizational case evidence, we analyze the prevalence and consequences of degree inflation, explore five evidence-based implementation strategies—competency architecture redesign, validated skills assessments, alternative credential recognition, equitable evaluation systems, and talent development pathways—and outline three pillars for sustaining inclusive talent systems: embedding equity in workforce planning, building internal mobility infrastructure, and cultivating skills-forward organizational culture. The synthesis demonstrates that skills-based hiring represents not merely a tactical recruitment shift but a strategic imperative for organizational performance, innovation, and social equity.