Skills vs University Degrees: What weighs more today?

In a world where technology advances rapidly, professionals’ skills must constantly improve and adapt. This makes a static college degree seem less relevant. In this article, we will analyze the debate about skills vs. University degrees, the importance of competency-based hiring and how to create a more inclusive and dynamic work environment today.

Difficulties finding talent

Organizations face great challenges in finding the talent they need. Rapid technological evolution and changing labor market demands have created a gap between available and required skills.

Currently, many companies find themselves having difficulties filling vacant positions, because candidates do not have the necessary skills, despite having university degrees. This imbalance is due to several factors:

• Rate of technological change: The skills required change rapidly and university programs often cannot keep up.
• Specificity of the competencies: Companies are looking for specific, practical skills that are not always taught in universities.
• Practical experience: The lack of practical experience among university graduates prevents them from being able to quickly adapt to the needs of the position.

Therefore, they must explore different ways to fill vacant positions. Adopting skills-based hiring can be an effective solution to this problem.

Disconnection between education and the labor market

A study reveals that more than 50% of university graduates do not work in their area of ​​study, showing a clear disconnect between formal education and market needs. This disparity highlights the need for constant adaptation of skills, especially in a world where artificial intelligence and other technologies are advancing rapidly.

Skills-based hiring: a growing trend

The answer to this need could be in skills-based hiring. An analysis of Lightcast and BCG of more than 20 million job offers shows a decline in demand for university degrees. This shift suggests that companies value practical skills and experience more than academic degrees.

What are STARs and how are they changing the game of University Degrees?

STARs (Skilled Through Alternative Routes) are people who have acquired skills through means other than a traditional university degree. These individuals are changing the game in the job market, proving that experience and potential can be just as valuable as college degrees.

Leading companies in hiring STARs

Companies like Dell, Accenture, IBM, Amazon and Globant are leading the way in hiring STARs. These companies value experience and potential over traditional degrees, creating a more inclusive and efficient labor market. This approach allows companies to access a broader pool of talent and encourages greater diversity in the workplace.

Benefits of hiring for skills

Those who are hired based on their skills earn promotions at a rate comparable to those who are hired traditionally. In addition, these people tend to be more loyal to their employers, staying in their organizations 9% longer than employees hired in the traditional way.

Skills-based hiring therefore allows organizations to tear down the paper ceiling that has prevented people without degrees from entering certain occupations and progressing once inside. This creates a more inclusive and equitable labor market.

Importance of Skills-Based Hiring

Skills-based hiring is crucial in today’s work environment. It is worth it because it allows organizations to find suitable talent adapted to the changing needs of the market. Additionally, it promotes diversity and inclusion in the workplace.

How to Succeed with Skills-Based Hiring

To be successful in skills-based hiring, organizations must:

• Assess skills of the candidates through practical tests.
• Implement training and continuous development programs.
• Foster a culture of learning and adaptability.

Skills vs Titles: A complementary approach

The dilemma between skills and degrees should not be seen as a binary choice. Both options complement each other. In this way, the university remains valid, but it must adapt to the new demands of the labor market. Adaptability and flexibility to learn are crucial in the field of skills.

Due to the above, the ability to learn new skills arises, known as learnability. This is becoming one of the most in-demand professional skills today. Employability increasingly depends on what can be learned, as learning cycles are shorter. This forces people to think about the evolution of their position and the requirements of the next level to be prepared.

What role do Digital Credentials play in this context?

In this new skills scheme, digital credentials They have become essential, both in the labor market and in education. These credentials allow professionals and students to demonstrate their competencies in a verifiable and accessible way. Digital credentials facilitate transparency and trust as they can be easily shared and verified online. In addition, they offer a flexible and modern way to certify specific skills, better adapting to the dynamic needs of today’s market.

In conclusion, STARs are changing the college degree game. As a result, the trend toward skills-based hiring reflects an evolution in labor market needs. In this way, organizations that adopt this approach are creating a more inclusive and dynamic market, valuing both experience and formal education, hence the importance of digital credentials. Simply put, this combination of practical skills and theoretical knowledge is essential to meet the challenges of the modern world. Therefore, it is necessary, from the academy, to provide the necessary tools to students, which guarantee their employability process.

If you want more information on how to certify and recognize the skills, competencies and achievements of your employees in the digital age, at Acreditta we can help you through our digital credentials platform. Write to us at info@acreditta.com or Create your free account at Acreditta.

Subscribe to blog here and receive all our content