Are Degrees Still More Important Than Skills?

apid changes to the world of work are affecting hiring practices and shifting perceptions about the most important characteristics for candidates.

While a degree has long been the gold standard for people seeking prestigious jobs and rewarding careers, many employers are starting to prioritize skills over qualifications.

In this article, careers experts from Jobseeker.com discuss why skills are growing in importance for employers, and how you can showcase your skills more effectively in your job applications.

The Changing Nature of the Job Market

The last few years have witnessed some of the most significant shifts in the job market and working practices in decades.

The COVID-19 pandemic ushered in new attitudes towards work, while the rapid evolution of Artificial Intelligence (AI) is starting to shape both hiring practices, and the nature of our jobs.

Consultancy firm McKinsey suggested that the pandemic could lead to a 25% increase in workers needing to change careers.

Meanwhile, a study from the US-based Pew Research Center indicated that almost one in five US workers were in jobs most exposed to AI, and most at-risk of being assisted or replaced by machine learning technology.

Those with a bachelor’s degree or higher were most likely to be affected. 

In these challenging times for jobseekers and workers, skills have become increasingly valuable over qualifications such as degrees.

Sectors where skills are growing in importance over degrees include tech, digital marketing and creative industries. Indeed, almost nine out of 10 tech companies are adopting skills-based hiring practices.

Firms in the tech sector tend to pay non-degree holders better than other industries. Some of the world’s largest tech firms are opting to hire primarily on skills over degrees, including Alphabet, Netflix, Meta and IBM.

Skills vs. Degrees in Hiring

There are pros and cons both to having a degree, and to having the right skill set. Which of these is most advantageous depends on your qualifications and both the role and level you’re applying for.

Some careers and industries require a specific qualification or professional license just to practice. These include medicine, law, teaching, accountancy, architecture, engineering and many others.

For these professions, the best way to get started in the industry is still to earn a degree in a relevant subject and then, if necessary, become chartered or registered to practice.

However, while some roles require a degree just to get started, the number of job vacancies specifying a degree-level education is on the decline. And if you don’t have a specific vocational degree, you may find you’re better off developing your skill set in work or through other training opportunities.

Focusing on your skills gives you far more options, and far greater flexibility in your career. The World Economic Forum suggests that skills, not degrees, will shape the future of work.

More than one billion jobs worldwide are likely to be transformed by technology during the 2020s, and it’s the employees and candidates with the best transferable skills who will be able to adapt to these new working conditions.

Skills such as coding and data analysis are becoming more and more essential to various jobs, while transferable skills such as problem-solving, communication and adaptability are growing in importance.

If, as a candidate, you focus on developing the most relevant and in-demand skills, you could equip yourself to thrive in the future work landscape.

Tips for Adapting Your Job Search to Focus on Skills

Setting up your job search for skills-based hiring will help you to maximize the impact of your skills and stand out from other candidates who might focus more on their qualifications.

Even if you lack a degree or formal professional qualification, you can still a gain an advantage in the job market if you showcase your skills in the most impacting way. Follow these tips to adapt your job search for skills-based hiring:

• Develop your skills: focusing on developing your skills shows employers that you’re proactive and committed to adapting to the changing career landscape. You could further your skills development by taking online training courses or by upskilling within your current role through training offered by your employer.
• Gain relevant industry experience: there’s no better place to learn useful skills than in work. If you’re starting out in your career, internships can help expose you to useful experience and skills. If you’re more experienced, it’s important to be proactive and seek opportunities to diversify your skill set through formal training.
• Showcase your skills in a portfolio: portfolios can be a useful tool for showing your skill set in more detail than a resume traditionally allows. Pick examples of your work that show particular skills to match the job description of the role you’re applying for. 
• Add certifications and training: adding formal industry certifications on top of your work experience can indicate to employers that you’ve got the skills necessary for the job.
• Review resume examples: to gain a deeper understanding of the skills required for the job, search for online resume examples that match the job title. Platforms like Jobseeker can provide resume templates and other tools to showcase your skills to employers.

How to Highlight Skills on a Resume

Follow these quick tips to make the most of your skills on your resume:

• Mention key skills in your resume summary: your resume summary is the perfect place to emphasize one or two key skills that make you an ideal candidate for the role.
• Show examples of skills in your work experience: use each entry in your work experience section to show how you’ve put your skills to use in your career to date. Provide evidence of the impact your skills have made and the value they’ve added for employers
• Create a skills list: your resume’s skills section provides space for listing your relevant hard and soft skills. Make sure your skills reflect the job description, but also leave space for some personal skills that reflect your unique qualities and strengths. 
• Use additional information to showcase extra skills: if you lack relevant work experience, use additional resume sections to show your skills in action. These can include volunteer work, hobbies and interests, certifications and internships.
• Tailor your skills to the job description: Always review the job description and amend your resume to make sure you’re only including the most relevant and appropriate skills for each application.
• Use a professional resume template: resume templates, like those offered by Jobseeker, can help you design a skills-based resume that really makes an impact with employers.

The Future of Work and Implications for Education

With the job market changing at an increasingly rapid pace, the future of work looks set to be ever-more focused on skills.

Transferable skills are already growing in significance, with employers prioritizing candidates who are capable of adjusting to new requirements and challenges.

The growth of the green economy, the influence of AI and the possibilities offered by flexible and remote working all lend themselves to a growing emphasis on skills. While formal education will always have a role to play, it will be those who dedicate themselves to ongoing skills development who are most likely to thrive.