In today’s rapidly shifting job market, employers are rethinking how they define a “qualified” candidate. Rather than filtering talent through the lens of degrees and résumés, many organizations are shifting toward skills-based hiring—a practice that prioritizes what a candidate can do over where they attended school or where they’ve worked.
This shift, driven by talent shortages and the demand for workplace equity, is gaining momentum across industries.
“Employers are realizing that they’ve been screening out people who could do the job just because they didn’t have the right degree,” said Byron Auguste, CEO of Opportunity@Work, in an interview with NPR. “It’s not just unfair—it’s inefficient.”
Skills-Based Hiring
A 2023 report from the Burning Glass Institute and Harvard Business School found that many U.S. employers have begun removing four-year degree requirements from job postings, particularly in mid-skill roles. The trend is most pronounced in industries such as information technology, sales and customer service.
By this year, a quarter of U.S. employers are expected to remove bachelor’s degree requirements for certain roles, a shift aimed at widening the talent pool and reducing hiring costs. Among those that have already made the change, 84% report improved outcomes, including increased diversity and applicant volume.
Companies such as IBM, Bank of America and Accenture have publicly committed to skills-first hiring strategies. In a blog post, IBM stated that “about 50% of our U.S. job openings no longer require a traditional four-year degree,” part of the company’s effort to make tech careers more accessible.
“Talent is everywhere; training and opportunity are not,” said Ginni Rometty, former CEO of IBM and current co-chair of the nonprofit OneTen, during a panel discussion. “We need to focus on skills and pathways, not just pedigree.”
Assessing Capability
To identify qualified candidates without relying solely on formal credentials, companies are turning to alternative evaluation methods. Job simulations, online assessments and performance-based interviews are gaining popularity as tools to gauge real-world competencies.
Google’s Career Certificates program, for instance, enables job seekers to acquire skills in high-demand fields such as data analytics and UX design without a college degree. According to Google, more than 150 companies, including Walmart, Infosys and Verizon, consider these certificates in their hiring processes.
“Technology is changing so fast that what matters most is the ability to learn and adapt,” said Lisa Gevelber, founder of Grow with Google, in an interview with CNBC. “That’s what we’re trying to highlight with our certificate programs.”
Creating Pathways
The skills-based movement is also being hailed as a tool for economic inclusion. By eliminating degree requirements for roles where they are not essential, employers can expand access to millions of capable workers, including veterans, career changers and those from underserved communities.
According to Opportunity@Work, more than 70 million U.S. workers are “Skilled Through Alternative Routes,” or STARs. These individuals often have the experience and skills needed for higher-wage roles but are overlooked due to a lack of a bachelor’s degree.
“STARs have been the backbone of our economy, and yet their potential remains untapped,” Auguste told The Washington Post. “Skills-based hiring allows us to value what workers know and can do.”
Challenges & Shifts
While the skills-first approach offers clear benefits, implementing it requires significant organizational change. HR leaders must train hiring managers to focus on competencies and adopt new tools to assess skills effectively. Some experts caution that progress can stall without a concerted commitment to equity and accountability.
Nevertheless, advocates argue that the long-term payoff is a more agile, diverse and inclusive workforce.
“The companies that figure this out will win,” Gevelber told CNBC. “They’ll find the talent others are missing.”
As industries adapt to technological disruption and demographic shifts, hiring for potential—not just pedigree—is proving to be a strategy rooted in both fairness and foresight.
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