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.

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.

How can 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 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