A degree was once considered essential for getting a decent job after university. However, some employers are shifting their hiring practices, prioritizing specific skills and attributes over the traditional degree requirement.

With expensive college costs and a re-evaluation of work during the pandemic, employers and job-seekers are challenging the traditional belief that higher education is necessary for everyone due to the competitive job market. Employers are discovering that the most skilled workers may possess talents beyond formal education, making jobs more accessible to fill without the automatic requirement of a formal degree, which is evident on job search platforms like Indeed and ZipRecruiter.

Prioritizing Skills Over Diploma

Parisa Fatehi-Weeks, the senior director of environmental, social, and governance (ESG) at the hiring platform Indeed, mentioned to CBS MoneyWatch that employers realize they can potentially find the right talent more effectively by focusing on the skills or competencies required for the job, without letting a degree be a hindrance.

The shift away from strict educational requirements is helping address what's known as degree inflation. This term refers to the trend where employers demand a college degree for positions that don't necessarily require skills at a college level, a practice that has been common in recruiting for a long time.

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The percentage of jobs on the ZipRecruiter hiring platform that specified a bachelor's degree as a requirement decreased to 14.5% in 2023, down from 18% in 2022. Moreover, 45% of surveyed employers reported by the company mentioned that they had eliminated degree requirements for certain positions in the past year. ZipRecruiter also found that 72% of companies prioritize candidates' skills and experience more than the degrees they possess.

The opposite trend played out during The Great Recession in the late 2000s, when the portion of job listings requiring a bachelor's degree increased from 12% to 20%, as reported by ZipRecruiter. Julia Pollack, the chief economist at ZipRecruiter, explained to CBS MoneyWatch that during The Great Recession, employers upgraded job requirements and hired recent graduates at lower costs.

The shift is more noticeable among small businesses, as indicated by the ZipRecruiter survey, where 47% of small and medium-sized companies are inclined to remove a college degree from the list of desired or necessary attributes in a candidate, in contrast to 35% of larger businesses.

Pollack noted, "Employers are turning to skills-based hiring; we don't care if you finished college. There's a distinct pattern where smaller businesses are more likely to embrace this approach compared to major enterprises."

However, not everyone is supportive of eliminating college requirements. Just over half of the survey respondents, or 53%, acknowledged the insistence of hiring managers on candidates having a specific background, such as a college degree.

Long-Term Career Benefits

Experts anticipate that fewer young individuals will opt out of pursuing four-year degrees, and they do not advise skipping college. However, they acknowledge that the payoff from a college diploma in the workplace may take time, potentially even years.

Diane Gayeski, former dean and professor at Ithaca College and an adviser at Intelligent.com, emphasized that individuals shouldn't view a four-year degree as a direct ticket to an immediate first job. It's intended to provide mobility beyond that initial job. When moving from an entry-level to a leadership role, employers seek broader experiences and creativity developed through exposure to various concepts and ideas.

More than earning educational credentials, attending college enables young people to develop essential soft skills, including teamwork, leadership, critical thinking, and communication, which are crucial for various careers. Gayeski highlighted that soft skills, critical thinking, and communication abilities are nurtured through college courses and experiences, and people often discover unexpected inspirations as they advance in their careers.

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