Skills vs. Degrees: Rethinking How You Evaluate Talent

For decades, a university degree was considered the gold standard of qualification. Job postings routinely listed a bachelor’s or master’s degree as a minimum requirement, regardless of whether the role actually demanded it. But the world of work has changed dramatically. With rapid technological shifts, evolving job functions, and the rise of alternative learning, many companies are rethinking how they assess talent.

Increasingly, skills, not degrees, are becoming the real currency of hiring. Whether someone gained their skills through university, bootcamps, online courses, or on-the-job experience, what matters most is their ability to do the job effectively. In this article, we explore why this shift is happening, how it benefits both employers and candidates, and what you can do to embrace skills-based hiring in your organisation.

Why the Shift Toward Skills-Based Hiring?

Let’s face it: the traditional degree requirement has long served as a proxy for competence. It was a convenient way to filter applicants, especially when hiring at scale. But it also excluded many capable individuals who didn’t have access to formal education or chose alternative paths.

Several factors are accelerating the move away from degree-based hiring:

1. Talent Shortages

Many industries, especially tech, are grappling with talent shortages. Relying solely on degree holders narrows your talent pool unnecessarily. Companies are now opening the doors wider to find people who can deliver, regardless of credentials.

2. The Rise of Alternative Education

Platforms offering online courses, coding bootcamps, and micro-credentials have exploded in popularity. These learning models are faster, more affordable, and often more aligned with real-world skills than traditional degrees.

3. The Skills Gap

Employers are realising that having a degree doesn’t always mean having the right skills. Conversely, many candidates without degrees have practical expertise, problem-solving abilities, and experience that make them valuable hires.

4. Diversity, Equity, and Inclusion

Degree requirements can disproportionately exclude underrepresented groups. By focusing on skills, companies can create more equitable hiring practices and foster diverse teams.

The Benefits of Hiring for Skills

Moving to a skills-first approach doesn’t just sound progressive. It delivers tangible benefits:

• Larger Talent Pool: You gain access to a broader, more diverse group of candidates.
• Faster Hiring: By focusing on demonstrable skills, you can make quicker, more confident hiring decisions.
• Better Job Fit: Skills-based hires tend to ramp up faster and perform better because they’re evaluated on real capabilities.
• Higher Retention: When people are hired for what they can do, not just where they studied, they’re more likely to feel valued and stay engaged.

How to Implement Skills-Based Hiring

Making the shift from degrees to skills doesn’t happen overnight. It requires thoughtful planning, but the rewards are well worth it. Here’s how to get started:

1. Reassess Your Job Descriptions

Start by reviewing your job postings. Are you listing degrees as a must-have? Ask yourself: what skills does this role truly require? If a degree isn’t essential, consider removing it as a requirement and focusing instead on specific competencies.

For example, instead of “Bachelor’s degree in Computer Science required,” try “Proven experience in software development, coding, and systems analysis.”

2. Define the Core Skills for Each Role

Work with hiring managers to identify the must-have skills for success in the role. Create a clear, realistic list of technical and soft skills. These might include:

• Technical skills (e.g., data analysis, coding, design tools)
• Communication and collaboration
• Problem-solving and adaptability
• Project management

3. Use Skills Assessments

Rather than relying on resumes, use assessments to evaluate skills. These can include:

• Practical tasks or case studies
• Online skills tests
• Work samples or portfolios
• Trial projects or paid test assignments

Assessments give you direct insight into a candidate’s capabilities and remove guesswork.

4. Train Your Hiring Teams

Interviewers may be used to filtering by degrees. Provide training on:

• Evaluating skills objectively
• Avoiding unconscious bias
• Asking competency-based interview questions

The goal is to create a consistent, fair, and transparent evaluation process.

5. Leverage Technology

There are many platforms that help you assess skills effectively, track candidates, and manage hiring workflows. Using technology streamlines the process and improves the candidate experience.

Addressing Concerns and Challenges

Making any big change in hiring practices can come with questions. Here are a few common concerns:

“But degrees still matter for some roles!”

Absolutely. Skills-based hiring doesn’t mean eliminating degrees across the board. For certain professions (e.g., law, medicine), formal qualifications remain essential. The goal is to be thoughtful about when a degree is truly necessary and when it’s just a habit.

“How do we assess soft skills?”

Soft skills matter just as much as technical ones. Use behavioural interview questions and situational tasks to evaluate communication, teamwork, and problem-solving.

“Won’t this take more time?”

Initially, yes. Shifting your processes takes effort. But over time, it leads to better hires, less turnover, and a more efficient hiring process.

Companies Leading the Way

Major companies are already embracing skills-first hiring. Some have removed degree requirements entirely for many roles, focusing instead on potential, experience, and demonstrated skills. This has helped them reach untapped talent and improve workforce diversity.

What's Next?

The future of hiring is flexible, inclusive, and focused on what truly matters: skills. By rethinking outdated requirements and embracing a skills-first mindset, your organisation can find better talent, faster, and build teams that are ready to tackle tomorrow’s challenges.

Hiring for skills isn’t just a trend. It is a smarter, more equitable way to build the workforce of the future.

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