There’s no need even to have a college degree…at all. Or even high school. If somebody graduated from a great university, that may be an indication that they will be capable of great things, but it’s not necessarily the case. If you look at people like Bill Gates, Larry Ellison, and Steve Jobs, these guys didn’t graduate from college. But if you had a chance to hire them, of course, that would be…a good idea.
Are you surprised these words came straight from the mouth of the wealthiest man in the world, Elon Musk?
Many of the most successful individuals (in this context, success refers to attaining wealth, doing what you enjoy, having freedom, and leveraging people to buy back time) share Elon’s view.
So, if the ultimate goal for almost every individual is to achieve success, does this mean abandoning the traditional pathway of going to school, getting a job, saving or investing and retiring?
Who better to answer this than the HR leaders, talent acquisition experts and recruiters right at the heart of hiring decisions? That’s why I reached out to top industry professionals; People who have years of experience in screening, assessing and hiring talent across various industries.
This article will answer some of the most frequently asked questions surrounding skill-based hiring vs. degree-based hiring, including:
Which hiring model is more effective?
Why are companies shifting towards skill-based hiring?
How do recruiters assess skills without degrees?
What’s the future of hiring?
As a job seeker, how can you position yourself for success? Degree or not
First…
What Does Degree-Based Hiring Mean?
Hiring based on a degree simply means solely hiring individuals who have gone through the traditional route of education and attained certifications in their relevant fields of study.
For decades, companies have used degrees as a hiring filter because they:
Serve as a benchmark for knowledge and discipline.
Indicate that candidates have undergone a structured learning process.
Make resume screening easier for recruiters by narrowing down applicants.
Industries like medicine, law, and engineering still heavily rely on degree-based hiring due to regulatory, safety, and ethical concerns.
What Does Skill-Based Hiring Mean?
Skill-based hiring is the complete opposite of degree-based hiring. In this case, the major requirement isn’t the individuals' educational certification, but rather, their relevant skills needed for the job role. In practical terms, a person doesn’t have to graduate from an institution with certifications to be hired.
In skill-based hiring, the focus is on:
Portfolios showcasing work done
Technical assessments and real-world problem-solving
Hands-on experience, apprenticeships, and certifications
Ability to learn and adapt quickly
Next, let’s look at the data on these different types of hiring.
Skill vs Degree-Based Hiring Data
These stats are intriguing. Clearly, there’s a massive incline towards skill-based hiring and it has undeniably shown advantages compared to the latter. Before we go on to hear from our HRs, is it safe to assume skill-based hiring is a necessity for most companies?
(Original data gotten from Forbes, The Times Reports, Harvard Business School, HackerRank, LinkedIn Data, Opportunity@Work, Jobs for the Future and SHRM respectively).
If there’s anyone who saw this unfolding gradually over the years, it’s Eniola Bello. Eniola has over 15 years of transformative experience in HR management and business excellence. She also has an impressive combined transition into tech.
We did not get here in a matter of a day; it had been a gradual and profound process. There does exist a disparity between academic qualifications and the practical requirements of the current work environment. For a very long time, I have witnessed a good number of those who do not possess formal degrees outperforming those who have degrees. Although I encouraged such persons to receive their degrees for advancement and promotions purposes.
Why is This Incline Toward Skill-Based Hiring Happening?
Application and Proof of Skills:
Studying is one thing, but applying those skills in real life is another.
After speaking with our HR and Talent Acquisition experts, 60% stated that the inability to apply learned skills in work environments is a key reason they prefer skill-based hiring over degree-based hiring.
Esther Abayomi, a Global Talent Sourcer and Technical Talent Acquisition Researcher at AltexSoft, is known for her ability to match top talent with the right companies. Passionate about helping people find the right opportunities, she shared her experience with me:
I still remember early in my career when I recruited a candidate who looked perfect on paper: Great education coupled with an impressive experience. But they struggled to perform in the role. Around the same time, another candidate, with no fancy degree but years of hands-on experience, absolutely thrived. It was a wake-up call for me. This made me realize that sometimes, the best hires aren’t the ones who look perfect on paper but the ones who bring grit, adaptability, and the kind of experience you can’t teach in a classroom.
Similarly, Esther Ajao, a Talent Acquisition Professional and Recruiter, has experience hiring for both technical and non-technical roles. She’s dedicated to building strong relationships, making the hiring process more efficient, and helping companies find exceptional talent.
One of the main reasons companies are shifting to skill-based hiring is that it focuses on what a candidate can actually do rather than just their degree. The job market is evolving quickly, and many roles require up-to-date skills that a degree alone doesn’t always provide. With more people gaining these skills through online courses and hands-on experience, employers are prioritizing practical abilities. This shift not only helps companies build more diverse teams but also speeds up hiring by evaluating potential and performance rather than just traditional qualifications. – Esther Ajao
Another interesting personal perspective was shared by Ademola Somorin, an HR professional with over a decade of experience in human resource management:
Let me give a personal example. I know of a 3rd year engineer whom if he resigns will impact the products of his company. In fact, I’d argue that he performs even better than some degree holders. Many of the talents we HR's come across, despite having degrees, struggle to meet job expectations, leaving managers with the burden of training them. On the flip side, there are individuals who have put in the hard work, upskilled themselves, and are more than capable of excelling in their roles. - Ademola Somorin
2. Technology’s Fast Growth:
There’s no denying how technology has played a huge role in skill-based hiring, especially with the advent of AI and, more recently, Agentics.
Access to information has never been easier. This accessibility has challenged the traditional view that a degree is the only path to career success.
First, technology is evolving so fast that traditional degrees can’t always keep up. Companies need people who can do the work, not just talk about it. Second, businesses are finally realizing that great talent comes from all backgrounds not just the usual "top schools" or conventional career paths. - Esther Abayomi
The pace at which technology is progressing is creating an appetite for specialized and current skills that academic institutions are not able to provide. At the same time, the increasing prices of higher education have made a large number of potential scholars search for other alternatives to acquire necessary skills, such as online courses, apprenticeship training, and boot camps. - Eniola Bello
3. Talent Gap:
The talent gap is one of the most pressing workforce issues today, and it is affecting almost every industry across the globe. You’d expect that with the advancements in every field, this gap should shrink. However, millions of jobs remain unfilled due to a lack of qualified candidates with the right skills. A (WEF) report states that by 2025, nearly 50% of all employees will need reskilling.
