Five years ago, if you asked any HR leader what mattered more—skills or degrees—the answer would have been almost automatic: degrees. But today, the script has flipped.
The World Economic Forum’s Future of Jobs Report 2025 reveals a significant shift in hiring priorities. Around 30 percent of Indian employers are now embracing skills-based hiring, compared to the global average of 19 percent, actively removing traditional degree requirements from job descriptions. This data reflects a broader move toward valuing practical skills, hands-on experience, and adaptability over formal education credentials.
In this article, we’ll explore the factors driving this transformation and examine whether this trend is simply gaining momentum – or if it has already become the new normal in the talent marketplace.
The rise of skill-based hiring
In recent years, the conversation around skills-based hiring has gained significant momentum. Hiring managers are increasingly looking beyond educational qualifications to assess candidates based on their talents, aptitudes, and personal strengths. The reason is clear: a college degree can quickly lose relevance in a world of rapid technological change if employees cannot upskill and adapt continuously. As a result, evolving and acquiring new skills is becoming the most valuable asset in today’s job market.
Agnishwar Jayaprakash, Founder and CEO of Garuda Aerospace, supports the growing trend of skills-based hiring. He has seen firsthand the benefits of prioritising practical skills in the fast-evolving drone industry. “ In the fast-evolving drone industry, the ability to pilot, maintain, and troubleshoot complex systems is paramount. We’ve found that individuals with drone certifications and hands-on experience often outperform those with solely theoretical knowledge,” shared Jayaprakash
However, not everyone agrees that this approach is universally applicable. Ashwini Dasgupta, Founder of Maverick Minds, emphasised that the shift is not yet widespread. In highly regulated fields such as medicine, law, and academia, degrees remain essential due to their standardised frameworks, accreditation systems, and licensing requirements, and rightly so.
Are degrees losing their edge in the job market?
The transition from degree-based to skills-based hiring is gaining traction as many employers realise that balancing skills and degrees is ideal for identifying candidates who can add value. But does this mean that degrees are becoming irrelevant?
Akash Agrawal, Co-Founder of ZOFF Foods, addressed this issue. He stated, “Degrees aren’t obsolete, but they’re no longer the sole benchmark of talent. In many operational and creative roles, especially within manufacturing and marketing, we’ve found that attitude, problem-solving, and hands-on expertise often outweigh formal qualifications. The shift is about recognising potential beyond the paper.”
Despite this trend, degrees still hold relevance in specific contexts. Ashwini Dasgupta points out that degrees provide structured learning and foundational theory, serving as a filtering mechanism in high-volume hiring scenarios. They can also reflect persistence, discipline, and commitment—intangible yet valuable traits employers often seek.
What approach should companies follow?
To stay competitive in today’s rapidly evolving hiring landscape, companies must adopt a balanced, flexible approach that blends skills-based and degree-based hiring. Rather than solely depending on academic qualifications, hiring managers should critically assess each role and ask: Does this position require a degree, or could skills and experience be more relevant indicators of success?
Leading tech giants are already following this mindset. Ginni Rometty, former CEO of IBM, shared in an interview with Fortune that the company earlier prioritised candidates with the highest levels of formal education for every role. However, over time, they found that employees without degrees could perform just as effectively as Ph.D. holders, as long as they brought the right skills and a willingness to learn.
For organisations still sticking to degree-first hiring, Meghha Pradip Purrohit, VES IT & Digital Head at Vivekanand Educational Society, offered a valuable perspective: “While degrees can signal discipline and foundational knowledge, over-reliance on them may limit access to diverse and dynamic talent. I’d encourage institutions to consider hybrid models—where portfolios, certifications, and demonstrable skills complement academic achievements. This shift not only aligns with modern workforce needs but also prepares students for real-world impact.”
Conclusion
Sometimes, breaking away from tradition is all you need to move forward. Skills-first hiring opens the door to a broader, more diverse talent pool, giving organisations access to individuals who may not fit the traditional mold but have the potential to thrive. By shifting away from rigid requirements like formal education, industry connections, or even conventional work experience, companies can uncover hidden talent, foster innovation, and build more agile teams.