How Skills-Based Hiring Is Expanding Opportunity For All

The Refined Value of Degrees: How Skills-Based Hiring Is Reshaping—Not Replacing—Higher Education’s Role in the Modern Workforce

Pennsylvania Governor Josh Shapiro signed an executive order in 2023 eliminating the college degree requirement for most state jobs. This decision, which follows similar actions in Utah and Maryland, (and soon followed by Georgia, Alaska and others), underscores a growing recognition that skills and experience often outweigh formal credentials. As The New York Times Editorial Board aptly noted, this change represents “a concrete shift in hiring philosophy that stops reducing people to a credential and conveys that everyone — college-educated or not — has experience and worth that employers should consider.”

This trend is not just a state-level phenomenon. Across the U.S., governments, corporations, and nonprofits are rethinking the role of college degrees in hiring. But what’s driving this change, and how can society ensure that this shift benefits employers and workers?

The Sectors Leading The Charge

While eliminating unnecessary degree requirements is gaining traction across industries, some sectors are moving faster than others.

Government and Public Sector: Governors are recognizing that many public sector roles — from administrative positions to IT support — do not require a four-year degree. This shift is expanding opportunities for non-degree holders and helping governments address labor shortages.

Technology: The tech industry has long been a pioneer in skills-based hiring. Companies like Google, Apple, and IBM have rolled out programs to hire candidates based on certifications, boot camp training, or hands-on experience rather than degrees.

Healthcare: Roles such as medical coders, lab technicians, and even some nursing positions are increasingly filled by candidates with alternative credentials or on-the-job training.

Non-Profits: While nonprofits have traditionally relied on degree requirements to filter candidates, many recognize that skills like grant writing, community outreach, and project management can be acquired outside the classroom.

Retail and Hospitality: These sectors have been quicker to adopt skills-based hiring, as they often prioritize customer service experience and soft skills over formal education.

Measuring The Change

The perceived and actual value of a college degree has shifted significantly over time, reflecting broader economic and societal changes. In the mid-20th century, a college degree was widely seen as a guaranteed pathway to upward mobility and financial stability, a perception bolstered by the post-World War II economic boom . However, by the early 21st century, rising tuition costs and student debt began to erode this belief, even as data continued to show that degree holders generally earned more over their lifetimes than those without degrees .

Lightcast (formerly the BurningGlass Institute) is a leader in providing detailed information on skills, jobs, supply and demand in the global labor market. They posted a 2024 report by Strada Education Foundation. It highlights that while 82% of recent graduates believe their degree was worth the cost, only 46% of Americans overall agree, pointing to a growing disconnect between perception and reality . This gap is further exacerbated by the fact that nearly 40% of college graduates are underemployed in their first jobs, often working in roles that do not require a degree .

The rise of alternative education pathways, such as coding bootcamps and industry certifications, has challenged the monopoly of traditional degrees in signaling employability . Despite these challenges, the economic premium for a bachelor’s degree persists, with median earnings for degree holders remaining 67% higher than those with only a high school diploma . As the labor market evolves, the value of a college degree may increasingly depend on its alignment with in-demand skills and industries, rather than the credential itself .

Ten Ways To Accelerate The Shift

Society must take a multi-pronged approach to ensure that college degrees are only required when truly necessary. Here are ten strategies to achieve this goal:

1. Expand Apprenticeships: Governments and corporations should invest in apprenticeship programs that provide hands-on training and a pathway to employment.
2. Promote Skills-Based Certifications: Encourage the adoption of industry-recognized certifications as alternatives to degrees.
3. Revise Job Descriptions: Employers should audit job postings to remove unnecessary degree requirements and focus on skills.
4. Invest in Upskilling: Companies should offer training programs to help employees acquire new skills and advance in their careers.
5. Leverage AI in Hiring: Use AI tools to match candidates with jobs based on skills and experience rather than credentials.
6. Partner with Community Colleges: Collaborate with community colleges to create tailored training programs for in-demand roles.
7. Highlight Success Stories: Showcase individuals who have succeeded without degrees to challenge stereotypes about credentialism.
8. Encourage Policy Changes: Advocate for state and federal policies that promote skills-based hiring.
9. Foster Public-Private Partnerships: Governments, corporations, and educational institutions should collaborate to create pathways for non-degree holders.
10. Measure Outcomes: Track the impact of skills-based hiring on workforce diversity, retention, and productivity to build a business case for change.

The Road Ahead

The move to eliminate unnecessary degree requirements is more than a hiring trend—it’s a societal shift acknowledging the value of diverse pathways to success. As Governor Shapiro’s executive order demonstrates, this change is both practical and equitable, opening doors for millions of Americans who have been sidelined by an overreliance on credentials. This practicality reassures us about the feasibility of the shift.

By embracing skills-based hiring, we can create a labor market that values what people can do, not just where they went to school. The question is no longer whether this shift will happen but how quickly we can make it a reality.