Is the future of hiring all about skills, not degrees?

Not long ago, having a degree from a top institution with good grades was enough to land you a prime spot in job interviews. But with industries evolving rapidly, especially due to technological advancements, hiring practices are changing too. Today, employers prioritise practical skills that directly meet their needs over just academic credentials. The Future of Jobs Report 2025 predicted that 39% of key job skills will change by 2030. With technology advancing at breakneck speed, continuous learning and upskilling have become essential. The rise of AI and generative AI has only intensified the demand for new skills. That doesn’t mean degrees are obsolete—but they’re no longer the sole deciding factor. Instead, companies seek a balance between formal education and hands-on skills.

Meanwhile, employees’ expectations have also changed. People want flexibility, mobility, and more control over their careers. With intense competition for talent, workers now have more power than ever, according to a report by Boston Consulting Group (BCG). In today’s job market, it’s clear—skills matter just as much, if not more, than certificates.

“While traditional degrees still provide a worthwhile foundation of knowledge and critical thinking ability, the increasingly accelerating rate of technological change has rendered practical, adaptive abilities increasingly valuable. Employers increasingly value candidates who possess both fundamental knowledge and the ability to acquire new skills quickly, particularly in emerging technologies and digital technologies. This development has given rise to other credentials like professional certifications, micro-credentials, and portfolio evaluations that support specialised skills and real-world expertise. In the future, most successful professionals are likely to be those that combine the full knowledge acquired through traditional schooling with a commitment to ongoing upskilling and adaptation to the industry’s needs. The emphasis should, therefore, be on viewing degrees and skills as complementary assets rather than substitutable qualifications, and both will be valuable assets for career development and professional transformation,” said Dr MM Ramya, Dean of AM Jain College.

According to Pratham Barot, CEO and Co-founder, Zell Education, as industries evolve, especially with rapid advancements in AI, automation, and digital transformation, the value of skills is increasing over traditional degrees. “While degrees provide foundational knowledge, it is the practical application of specific skills that determine employability and career growth today,” he said.

BCG’s report also showed that more and more job seekers are finding success without traditional degrees. In the US alone, about 70 million workers are considered “STARs” (Skilled Through Alternative Routes), meaning they’ve built their careers through experience or self-learning rather than a college education. SHRM reported that 75% of companies are moving in this direction, and over 40% now prioritise skills over degrees when hiring. The reason? Employers want people who can start contributing right away, without needing months of training. Practical skills matter more than ever.

Dhriti Prasanna Mahanta, Vice-President & Business Head, TeamLease Degree Apprenticeship, highlighted a LinkedIn report which said that over 80% of Indian professionals consider skills more critical than academic credentials. “The job market is undergoing a paradigm shift where practical skills often outweigh formal degrees. Employers prioritise candidates with in-demand technical and problem-solving abilities, reducing the onboarding learning curve. Apprenticeships and work-based learning programmes provide real-world experience, making professionals job-ready from day one. Government-backed initiatives like NASSCOM FutureSkills and PLI-linked skilling programmes are bridging the skills gap in AI, cloud computing, and cybersecurity. In a rapidly evolving economy, adaptability and continuous skill acquisition are emerging as the key differentiators for career success,” he said.

LinkedIn also reported that upskilling is more important than ever, with 87% of professionals stressing the need for continuous learning. Recognising this, the government is also taking steps to equip the workforce. In Budget 2025, Finance Minister Nirmala Sitharaman announced the establishment of five National Centres of Excellence for Skilling to help young people adapt to evolving job demands. Also, a Centre of Excellence in AI for Education will be set up with a ₹500 crore investment, along with a National Institute of Food Technology, Entrepreneurship, and Management in Bihar. Clearly, upskilling and reskilling are no longer optional. They are now long-term investments in staying relevant in today’s fast-changing job market.

Sachin Alug, CEO, NLB Services admitted that the government’s recent budget announcement of five National Centres of Excellence for Skilling and a dedicated AI Centre of Excellence shows a clear focus on future-ready workforce development. “This push for specialised training aligns with industry demands, particularly in emerging technologies, as companies across sectors increasingly prioritise candidates with updated digital skills and adaptable learning capabilities,” he said.

Nitish Jain, President & Founder, SP Jain Group, pointed out that it’s not a matter of skills vs degrees. Instead, it’s about degrees that teach the right skills. “A degree is only valuable if it prepares you for the future. If 39% of job skills are going to change by 2030, then it’s clear that employers aren’t just hiring for what you know today—they want to see if you can adapt, learn, and lead in a fast-changing world. AI and automation will take over many tasks in the future—data analysis, number crunching, even decision-making to some extent. But what machines can’t replace are human skills—the ability to think critically and innovatively, lead with empathy, global intelligence, and adaptability. That’s what will set professionals apart,” he said.