Death of the degree

The traditional college degree once guaranteed a career. But today, many professionals, especially in fields like architecture, find that practical skills matter more than formal qualifications. So, is this the death of the degree? Or just a new era for how we value education?

Are degrees still worth it?

Historically, the importance of a degree was undeniable. It signalled a baseline of knowledge and discipline to employers. Now, the world moves faster. What you learn in theory can quickly become outdated.

Are degrees necessary for being successful in every role today? Not always. While a bachelor’s degree remains vital in regulated fields like medicine, many sectors, especially tech, value demonstrable abilities over a paper qualification. The focus has shifted from what you know to what you can do.

Why skills now rival degrees for employers

The rise of the skills-first economy means employers prioritise candidates who can immediately deliver value. This isn't a trend; it's a response to rapid innovation and the need for agility.
Key reasons for the shift:

Immediate impact: Companies need problem-solvers. Practical skills in areas like data analysis or digital marketing allow instant contributions.
Adaptability: The ability to learn and re-learn quickly is paramount. Hands-on experience often builds this faster than rigid academic programs. This power to adapt is what employers truly seek.
Cost-effectiveness: For business leaders, hiring someone with immediate skills can be more efficient than waiting for new graduates to gain experience.

Alternative learning paths like online courses and apprenticeships are gaining traction. These offer targeted skills development without the extensive time and financial commitment of a traditional college degree, helping people uncover and develop in-demand competencies.

How to hire in a skills shortage

The death of the degree means widening your talent search, not dismissing graduates. For business leaders and HR team members, adapting hiring strategies is critical in today's tight labour market.

Hays Salary Guide FY25/26 reveals that 84% of hiring managers report experiencing a skills shortage. While this data is accurate, there's a crucial nuance:

Interpersonal skills gap: The most significant shortage right across the board is in human skills like communication and teamwork. While technical skills may exist, a lack of these soft skills creates gridlock in the hiring process.
Competition and expectations: Shortages are also attributed to competition from other employers, pay, fewer people entering the industry, and a lack of progression.
Application overload: The volume of applications has increased, often with highly exaggerated CVs and AI-generated cover letters, making it harder for employers to discern genuine talent. Candidates are reporting more applications needed to land a job, and some are staying put rather than lowering expectations.

How to adapt your hiring strategy

Consider the following advice when implementing skills-based hiring strategies:

Skills-first job descriptions: Highlight required skills and competencies instead of strict degree requirements in your ads. Use competency-based interviews and practical assessments.
Tap alternative talent pools: Look beyond traditional universities. Consider candidates from vocational training, bootcamps, or with significant self-taught experience. This helps you select from a wider pool of people.
Invest in training: If your current team is lacking in certain skills, invest in upskilling. This addresses gaps and boosts morale.
Foster internal mobility: Encourage employees to develop new skills and move into different areas internally.
Refine your ads: Ensure your recruitment ads clearly reflect your skills-first approach to attract a diverse generation of applicants.

By focusing on what candidates can do, you can effectively deliver on your talent needs and build a robust, adaptable workforce.

Tips for future-proofing your career

Feeling the decline of your degree's perceived value? Or wondering if a traditional degree is right for you? Your concerns are valid, but opportunities abound.

Your Career Action Plan:

Identify top skills: Research the most in-demand skills in your desired sector. Job ads and industry articles are great resources.
Embrace lifelong learning: Education doesn't stop. Pursue certifications, workshops, online courses and self-study. Connect with peers to expand your understanding.
Build a portfolio: Showcase your abilities with projects, volunteer work, or freelance tasks. A strong portfolio often shows your capabilities better than a transcript.
Strategic networking: Your professional team and network can open doors to opportunities that don't hinge on a bachelor’s degree.

The importance of a degree for your success is increasingly about your growth mindset and practical experience, not just the qualification itself.

The future of learning is a hybrid approach

While some declare the death of the degree, it's more of a profound evolution. The importance of a degree is being redefined, not eradicated. Education will continue to be vital, but its delivery will change.
Micro-credentials, short courses, and continuous professional development will become even more notable. The emphasis will be on practical application and lifelong learning, ensuring people are equipped for the ever-changing world of work. This addresses concerns about the relevance of formal education.

At Hays, we uncover talent and connect individuals with opportunities, focusing on the power of their skills and potential. We help both employers and people navigate these exciting changes. Need help with your job hunt or hiring process? Contact your local Hays office today.

Download Hays Salary Guide FY25/26