Skills vs Degree: What Employers Want!

Student life is no less than a struggle but there is also no shortage of opportunities for academic as well as social and emotional development. 

Take the case of a college student who made a smooth transition from high school to university campus, didn’t waste a lot of term time, prevailed in semester life, read courses, passed exams, and finally earned a degree with heaps of student loans. Now he/she is navigating the roadblocks to entering the workforce after graduation. 

A university/college pass out after leaving University and is often being forced to figure out the rest of his/her life and career with a sole possession: a degree. 

Nowadays, when it comes to the job market, a body of work is far more impressive than a credential. Some would argue that it is good to have skills for an average career but degrees will help you stand out of the crowd. We know that education and academic degrees are a proxy for useful skills but when employers are hunting for skilled or valuable resources, what do they actually look for? 

In the rapidly changing job market, the debate between the value of skills and degrees is more relevant than ever. The traditional notion of job security and career development is undergoing a massive transformation. As industries evolve and the demands of employers shift, many are beginning to question whether traditional degrees hold the same weight they once did. 

This article explores the importance of skills and experience in comparison to degrees and examines the evolving landscape of hiring practices by employers.

Degrees Remain Important but Not in Singularity:

In a world where students leave colleges and university campuses with pretty much similar degrees, some of which are perceived as useless by the job markets, graduates struggle to find themselves without essential skills leading to employment. 

The question arises: “Does your degree still hold its value in the rapidly changing world that is shaped by e-commerce and digital technologies or is it just a piece of paper that is also held by many others in your field?”

While it is true that degrees are still an important signal of educational attainment, employers nowadays prefer skills-based hiring rather than college degrees. The trend extends beyond blue-collar jobs and tech giants like Google with lucrative white-collar jobs are now considering their certifications equivalent to a degree for some entry and mid-level positions. 

The world of work is in flux and therefore the real culprit for this shift. In the rapidly changing world, universities and curriculums struggle to keep abreast of the current advancements, tech transformation, and societal shifts, hence conceding the ground to skills. 

Skilled-based Hiring and Degree or Merit-Based Hiring:

We live in a world that demands qualifications as evidence of skill at all levels. Before onboarding corporates want you to show the traditional evidence of competence through degrees or more pragmatic and flexible sources i.e., skills and certifications. Growing up, almost everyone is told by their family and social circle that there is no replacement for a college degree and everyone must get one to succeed in their careers. 

Also, industry nowadays looks for skills more than a degree and a degree without skill becomes a struggle to secure a job. Organizations know that a skilled person will increase productivity at their workplace rather than a degree which sometimes qualifies as a mere piece of paper.

Hiring styles have seen a shift recently and employers are changing their approach with job postings and selecting suitable candidates for the job. The most notable change has been the surge in hiring teams implementing skills-based hiring practices. This style of hiring directly contrasts with the regular industry standards which are degree or competency. 

A study published by the Burning Glass Institute in 2022 argues that US employers have now preferred skills over degrees. This was evident from the changes in the percentage of job openings that require at least a 4-year college degree. 

Difference Between Skilled-based and Degree/Merit-based Hiring:

Fundamentally, the approach for each style of hiring is as the name suggests. In skills-based hiring, recruiters look for the skills that an individual possesses at the time of screening and interview/hiring process. Contrary to that in degree-based hiring, teams select or shortlist candidates based on their degrees or tertiary educational qualifications. 

Degree-based Hiring:

Degree or merit-based hiring can be considered an old-school standard of hiring that is very much prevalent even today. Historically, hiring practices have heavily favored candidates with degrees. As an original means of hiring talent, this method is used to screen and select based on their qualifications and their suitability for the job. 

Many companies use educational qualifications as a filter in their recruitment processes, often overlooking skilled individuals without formal education. This approach can result in a less diverse candidate pool and may exclude individuals with valuable practical experience.

Hiring teams place a lot of value on the candidate’s qualifications and their value increases depending on their degrees such as a master's or a doctorate. 

Skills-based Hiring:

In recent years, there has been an uptick in skills-based hiring practices and a decrease in traditional hiring practices. Companies are increasingly adopting a holistic view of candidates, considering their skills, experiences, and potential rather than solely their educational background. This shift allows organizations to tap into a broader talent pool, including individuals from non-traditional backgrounds who may possess the necessary skills but lack formal degrees.

According to Test Gorilla, 81% of its participants have shifted to skills-based hiring and have found good results with the newly adopted approach. Having multiple options to choose candidates from a wider and more diverse talent pool of applicants, the participants find it reassuring that they are picking the right fit for the job. 

Additionally, the survey also recorded that these participants also experienced a decrease in the number of bad hires which ultimately contributed to the improved employee retention rates. Another plus with skill-based hiring is that it covers the accessibility gaps that many job seekers face despite having the necessary skills to fill a role. 

Benefits of Skills-based Hiring

Skills-based hiring offers several advantages. It encourages diversity in the workplace, as it allows candidates from varied backgrounds to enter fields that may have previously been closed off to them. Additionally, this approach helps organizations find candidates who can meet their specific needs, ultimately leading to better job performance and employee satisfaction.

Are Skills Encroaching the Space of Degrees? 

Historically, a college degree was seen as a ticket to a good job, often viewed as a crucial milestone in career advancement. However, the job market has seen significant shifts in recent years. Many employers now prioritize practical skills and relevant experience over formal education credentials. The rise of technology and digital platforms has created an environment where knowledge and expertise can often be acquired through alternative means, such as online courses, boot camps, and on-the-job training.

Having said that skills cannot replace a degree or the need for a degree. Getting a job just becomes easier with a degree but it is not the primary concern. Building a career path with a degree equips you with the necessary skills and no skills-based hiring discourages a person from acquiring tertiary-level qualifications.

However, with the rise of alternative education and the proliferation of online learning platforms, coding boot camps, and vocational training programs, individuals are finding that they can acquire skills more quickly and at a lower cost than obtaining a traditional degree. Programs focused on specific skills often yield faster results, allowing learners to enter the workforce sooner.

Real-World Application vs. Theoretical Knowledge:

In the changing landscape of employment, while a degree can provide foundational knowledge, it may not always translate to practical skills. Many graduates find themselves entering the workforce with theoretical knowledge that doesn’t align with the demands of their roles. Employers increasingly value candidates who can demonstrate their ability to apply their knowledge in real-world scenarios, often favoring those with hands-on experience over those with advanced degrees.

The Skills Gap:

The term “skills gap” refers to the disparity between the skills employers need and those possessed by job seekers. As technology advances and industries transform, many traditional education programs struggle to keep pace. This has led to a greater emphasis on skills acquisition through non-traditional pathways, further underscoring the value of experience and competency.

Employers’ Perspectives:

Surveys indicate that many employers now view skills as a critical factor in hiring decisions. A report by the World Economic Forum emphasizes that businesses increasingly prioritize adaptability, problem-solving, and interpersonal skills over formal educational backgrounds. In sectors like tech, creative industries, and skilled trades, the demand for practical skills often outweighs the need for formal qualifications.

The Impact of Networking and Personal Branding:

In the digital age, networking, and personal branding have become essential tools for career advancement. Platforms like LinkedIn allow individuals to showcase their skills and experiences to a broader audience. This trend emphasizes the importance of what individuals can do rather than what credentials they hold, further diminishing the weight of degrees.

Skills vs. Degree: Why Companies Use One or the Other:

A degree is just a signal. Much like anything else you might include on a resume or job application. But the strength of that signal has gradually diminished and it no longer carries as much weight as it once did. That is because technology has brought forth far more potent and useful signals. The problem is that today there is a higher percentage of job applicants with university/college degrees than a decade or two ago and this credential serves no longer as a differentiator as it would in the past. 

This has pushed companies to turn to skilled-based hiring because it allows them to focus on the practical abilities and competencies that candidates bring to the table. This approach often leads to a more diverse workforce, as it opens doors for individuals who may have acquired skills through unconventional paths, such as self-study, vocational training, or on-the-job experience. 

By prioritizing skills over formal degrees, these companies can quickly fill roles with capable individuals who can demonstrate their proficiency and adaptability in real-world scenarios.

On the other hand, some companies still opt for degree-based hiring as a way to ensure a certain level of theoretical knowledge and foundational understanding within their workforce. Degrees often serve as a standardized benchmark, helping employers assess candidates' commitment and dedication to their field. 

In industries where specific educational credentials are essential—such as healthcare or engineering—having a degree can be critical for compliance and quality assurance. Thus, degree-based hiring may provide a more structured approach to recruitment, ensuring that all candidates meet established educational standards.

In short, the recruiters pick the suitable candidates depending on the role. There are specialized fields where the degree is a prerequisite and no skill can come into play. Similarly, there are jobs that revolve around skills, and with the right skills, a person can apply for multiple positions in different industries. 

Jobs Where A degree is Paramount: 

Here are the positions that are based on merit and require a professional degree. Also, one can start these positions without gaining significant work experience. Here are ten jobs where professional qualifications make a prerequisite. 

1. Doctor

Doctors diagnose and treat illnesses, conduct medical exams, and prescribe medications. They must complete extensive education, including a bachelor's degree, medical school, and residency training. Their expertise is crucial for maintaining public health and saving lives.

2. Engineer

Engineers apply principles of science and mathematics to design and develop structures, machines, and systems. They specialize in various fields, such as civil, mechanical, or electrical engineering. A degree is essential to gain the technical knowledge and skills needed for this profession.

3. Accountant

Accountants prepare and examine financial records, ensuring accuracy and compliance with laws. They analyze financial data, manage budgets, and prepare tax returns. A degree in accounting or finance is typically required, along with certification for many positions.

4. Teacher

Teachers educate students in a variety of subjects, fostering critical thinking and a love for learning. They design lesson plans, assess student progress, and create a positive classroom environment. Most teaching positions require a degree in education or a specific subject area.

5. Pharmacist

Pharmacists dispense medications, advise patients on drug interactions, and provide health consultations. They play a vital role in healthcare by ensuring safe medication use. A Doctor of Pharmacy (Pharm.D.) degree is required to practice as a pharmacist.

6. Architect

Architects design buildings and spaces, blending functionality with aesthetic appeal. They develop plans and specifications, ensuring compliance with regulations and safety standards. A degree in architecture is essential, along with practical experience and licensure.

7. Psychologist

Psychologists study mental processes and behavior, providing therapy and assessments to individuals. They often work in clinical settings or research, addressing mental health issues. A doctoral degree in psychology is typically required for licensure and practice.

8. Nurse

Nurses provide direct patient care, support physicians, and educate patients about health management. They work in various settings, from hospitals to clinics. A degree in nursing, along with passing a licensing exam, is essential for this critical role.

9. Data Scientist

Data scientists analyze complex data sets to derive insights that inform business decisions. They use statistical tools and programming languages to interpret data trends. A degree in computer science, statistics, or a related field is often required for this role.

10. Marketing Manager

Marketing managers develop strategies to promote products and services, driving brand awareness and sales. They analyze market trends, oversee campaigns, and manage teams. A degree in marketing, business, or a related field is typically necessary for success in this role.

Jobs That Require Skills and Not Necessarily a Degree:

Many industries are shifting towards valuing practical skills over formal degrees, recognizing that hands-on experience can lead to high performance and innovation. These jobs often emphasize problem-solving, creativity, and technical expertise, allowing individuals from diverse backgrounds to excel. 

Also, the cost of a 4-year college degree from a recognized institution is big and one doesn't need a four-year professional degree program to land a good-paying job. 

As reported by Forbes, a study by Intelligent.com stated that 45% of companies plan to eliminate bachelor's degree requirements for some positions this year (2024), and 55% of companies dropped bachelor's degree requirements in 2023. 

If you are pursuing a job that pays well without a degree, you are doing it at the right time. Here are ten roles that prioritize skills over degrees:

1. Web Developer

Web developers create and maintain websites, focusing on functionality, user experience, and design. Many successful web developers are self-taught or have completed coding boot camps. Proficiency in programming languages like HTML, CSS, and JavaScript are crucial for this role.

2. Electrician

Electricians install and repair electrical systems in homes, businesses, and industrial settings. They typically complete apprenticeships and gain certifications, relying on hands-on training rather than a formal degree. Strong problem-solving skills and attention to safety are vital in this profession.

3. Graphic Designer

Graphic designers create visual content for print and digital media, using software like Adobe Photoshop and Illustrator. Many successful designers build their portfolios through practice and freelance work rather than formal education. Creativity and technical skills are essential for producing compelling designs.

4. Real Estate Agent

Real estate agents help clients buy, sell, and rent properties, guiding them through the complexities of the market. While licensing is required, it does not necessitate a degree; many agents succeed through networking and sales skills. Strong interpersonal skills and market knowledge are key to thriving in this field.

5. Sales Representative

Sales representatives promote and sell products or services, often working directly with customers to understand their needs. Success in this role is largely driven by communication skills and the ability to build relationships. Many representatives excel through experience and training rather than formal education.

6. Construction Worker

Construction workers perform various tasks related to building, renovation, and maintenance. They typically learn on the job or through apprenticeships, gaining valuable skills in trades like carpentry or masonry. Physical fitness and teamwork are essential for success in this hands-on profession.

7. SEO Specialist

SEO specialists optimize websites to improve their visibility on search engines. They analyze data, conduct keyword research, and implement strategies to enhance organic traffic. Many successful professionals in this field develop their skills through online courses and real-world experience.

8. Social Media Manager

Social media managers develop and implement strategies to enhance brand presence on platforms like Instagram, Facebook, and Twitter. Success in this role often stems from creativity and a deep understanding of online trends rather than a degree. Strong writing and analytical skills are critical for engaging audiences.

9. Bartender

Bartenders mix and serve drinks in bars and restaurants, often crafting unique cocktails while providing customer service. Many bartenders learn through hands-on experience and specialized training programs rather than formal education. Creativity and interpersonal skills are essential in creating a welcoming atmosphere.

10. Photographer

Photographers capture images for various purposes, from weddings to commercial advertising. Many successful photographers build their skills through practice, workshops, and portfolio development instead of a formal degree. A strong understanding of lighting and composition is vital for producing high-quality images.

Final Words:

As the debate between skills and degrees continues, it is clear that the value of skills is on the rise when it comes to getting gainful employment. Remember! Degrees will always remain expensive and trades will never be out of demand. 

While degrees can provide a foundation, practical skills and experiences are becoming increasingly crucial in the job market. Employers are shifting their hiring practices to prioritize competency and adaptability, paving the way for a more inclusive and dynamic workforce.

The emergence of the skills economy signifies a revolutionary change in the perception of professional value. In this evolving landscape, traditional educational institutions must adapt to meet the changing needs of both students and employers. Lifelong learning and skills development will become integral to career success as the rise of automation, artificial intelligence, and globalization is reshaping industries and redefining the skills that are invaluable in the workforce. 

Ultimately, while degrees still hold value, the emphasis on skills reflects a significant shift in how we view education and employment. The future belongs to those who can demonstrate their abilities and continually adapt to the demands of an ever-changing world. As we move forward, the balance between skills and degrees will define not only individual career paths but also the future of work itself. For now, we see skills winning the game!