Skills vs Degrees: What qualifications are necessary for a job?
Should degree-based hiring be the golden ticket for hiring decisions, or is it time to get
rid of old traditions and reevaluate the new qualifications for a job? Oftentimes employers will
solely focus on the candidates with a degree on their resume rather than those with real-world
skills. But, does having a college degree give an employer enough information about a
candidate’s competency for the job?And how do college graduates use their degrees in their jobs?
While college degrees have traditionally been a main factor in hiring decisions, shifting towards
skill-based hiring will allow a wider range of talent, increase efficiency in hiring practices while
also improving finding the right fit for a job.
Historically as the U.S. industrialized, there was a massive increase of professional roles
like a doctor, engineer,or teacher. College degrees were often used as a differentiator between
those who could perform the job well, as those who couldn’t. However in the current rapidly
growing industry jobs have started shifting from degree-based hiring to skill-based hiring and
have seen many benefits. “…the estimated cost of a bad hire ranges from five to 27 times the
amount of the person’s actual salary. Yet, when companies implement skills-based hiring, the
quality of candidates increases…Employees without college degrees also tend to stay in their
roles 34% longer than those with degrees.” (Forbes, 2023) Skill-based hiring offers many
advantages such as lower hiring costs, reducing the risk of a bad hire, and a more stable
workplace when an employee is able to stay at a company longer.
Gillen 2
What should be more valued by an employer? Skills or credentials? “Valuing skills over
degrees will open employers up to a new world of talent and diversity that possible candidates
have to offer. Opportunity at work, a website that gives people a voice to share their setbacks in
the job industry, shares LaShana Lewis’s story, “I had tried for many years to get jobs in the tech
sector, only to be told that I could not get a job because I did not finish the degree. I was never
tested on my technical skills or made it past the first interview.” LaShana’s experience illustrates
the issues she faced during the job hunt. She wasn’t offered high paying jobs or even an
interview despite having technical coding and computer skills from a young age. Companies that
don’t focus on skills over degrees will set themselves up for failure.
Howcan companies incorporate skill-based hiring into their system of hiring decisions?
There are many ways companies can move into skill-based hiring practices, digital badges are an
easy way to show a candidate’s specific skill that a job might be looking for. “…76% of
employers use some skills-based hiring to find new talent, with almost 55% using role-specific
skills tests.” (Forbes, 2023) As stated previously, it’s expensive when companies mishire a
individual for a job position. Digital badges, “From an employer’s perspective…could become
valuable sources of detailed information about each job candidate that would contain useful data
beyond a set of formal degrees and achievements earned by an applicant.” (Shelton, 2020, pg
16-17) Shelton argues that digital badges, a certification given for the completion of a specific
skill or ability, are an efficient way for employers to see if you are the exact fit for a job. This
learning practice is perfect for industries that need specific job roles. Digital badges provide an
employer with a detailed measure of a candidate’s abilities and skills that college degrees may
not provide.
While a degree provides a certain level of knowledge, it may not align with the
Gillen 3
employer’s needs. “More than half of Americans who earned college diplomas find themselves
working in jobs that don’t require a bachelor’s degree or utilize the skills acquired in obtaining
one.” (Cerullo, CBS, 2024)