Hiring practices are currently undergoing a dramatic change. Companies are increasingly moving away from degree requirements in favor of skill-based hiring. This shift isn’t just a trend, it’s a rethinking of how organizations identify, evaluate, and retain top talent. If you’re curious about why this is happening, who’s leading the way, and what it means for employers and candidates, this blog will break it all down.
We’ve conducted over 20 hours of research to identify all the statistics behind this trend so that you can decide if making the transition is right for you.
Download our report to learn more.
About the report
Our recent report, Dropping Degree Requirements: 2025 Industry Trend Report, explores this evolving trend in depth. Using data-driven insights, we analyzed industry-specific adoption rates, company examples, and the tangible benefits of skill-based hiring. Through extensive research, we uncovered how organizations are focusing on skills assessments and practical experience to create a more inclusive and effective workforce. To learn more, access the full report, which provides a comprehensive view of this transformative shift.
What’s happening?
The reliance on degrees as a baseline requirement for hiring is steadily declining. Employers are recognizing that traditional credentials often fail to capture a candidate’s full potential. Over the past few years, there has been a 60% decrease in job postings requiring degrees, and 34% more roles are now prioritizing skills over educational credentials. This trend is particularly visible in leading sectors such as information services, software, and construction, where companies are embracing alternative qualifications at unprecedented rates.
Why is it happening?
The shift is being driven by several factors.
- Tight labor markets have forced companies to reevaluate rigid hiring practices and broaden their search criteria to include non-traditional candidates.
- Many organizations are also striving to meet diversity and equity goals by removing degree requirements to reduce barriers for underrepresented groups.
- Beyond these external pressures, companies are increasingly valuing practical skills and real-world experience over formal education.
- Job skill assessments and measurable outcomes are proving to be more reliable indicators of success than degrees, particularly in dynamic industries.
Benefits & challenges
The benefits of skill-based hiring are substantial. For employers, moving beyond degree requirements leads to expanded talent pools, higher retention rates, and increased productivity. Non-degree hires often stay longer in their roles and bring practical expertise that aligns directly with job demands. For employees, this shift creates career flexibility and opens new pathways for advancement based on proven skills rather than traditional credentials. In some cases, workers without degrees are even earning higher salaries as their demonstrated abilities become more valuable to employers.
However, challenges remain. Overcoming hiring bias ingrained in traditional practices can be difficult, and developing reliable skill-based assessments to evaluate candidates requires time and resources. Some industries, such as healthcare and finance, are slower to adapt due to the deep entrenchment of degree-based qualifications.
Who’s leading the way?
Companies like Yelp, Saks and Cigna are setting the standard for skills-based hiring. These organizations are actively removing degree requirements and introducing new ways to evaluate talent through skills-based assessments, apprenticeships, and outcome-driven job descriptions. Their success highlights the potential for other organizations to follow suit and reap the benefits of a more inclusive, skills-focused approach to hiring.
Key takeaways
The shift to skill-based hiring marks a critical opportunity for businesses to modernize their hiring practices and build stronger, more diverse teams. Removing degree requirements can reduce hiring bias, foster inclusivity, and create more equitable opportunities for candidates from all backgrounds. Skills assessments are becoming essential for evaluating candidates and aligning talent with organizational needs. While challenges persist, the long-term benefits of skill-based hiring—greater retention, productivity, and workforce diversity—make it clear that this approach is here to stay. As more companies embrace these practices, skill-based hiring is poised to become the new standard across industries.
Want to learn more about the stats and trends behind this shift in hiring philosophies?
Get our full report here.
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