For decades, college degrees were the gold standard for getting a job, sending a clear, positive signal to hiring managers that candidates were capable and well-qualified.
But recently, the hiring landscape has shifted. These days, more and more companies are looking for specific skills—not degrees—and hiring candidates accordingly.
Jay Titus, vice president and general manager of workforce solutions at the University of Phoenix, argues that the pendulum has swung too far. While skills are certainly important, he says, degrees still matter.
The Transition to Skills-Based Hiring
College degrees were once a simple, reliable filter for evaluating talent—a line item that helped hiring managers quickly sort through stacks of resumes. But the proportion of Americans who have graduated from college has risen dramatically—from roughly 8% in 1960 to 38% in 2022—meaning that, in the modern era, a college degree no longer makes job candidates stand out from the crowd.
In addition, the value of higher education has faced intense scrutiny in recent years. With college costs continuing to rise, more people are asking whether the return on a degree is worth the investment. Employers, too, have grown increasingly skeptical. They question whether degree programs are adequately equipping graduates with the practical skills they need to succeed in today’s workforce.
On top of that, technology has been advancing at a breakneck pace, and many companies simply can’t hire fast enough to keep up.
Against this backdrop, some employers have started to wonder whether college degrees are really necessary—and if requiring them might be slowing down the hiring process or shutting out qualified candidates. Big-name companies like Google and IBM, along with select state governments, have removed degree requirements from many of their jobs, opting instead to focus on candidates’ skills and experience.
Why Degrees Still Matter
However, after observing this transformation unfold across hundreds of organizations, Titus says it’s clear the shift toward skills-based hiring has gone too far.
He argues that skills-based hiring has had the unintended consequence of creating a misleading pathway for workers. Despite downplaying degrees, many employers are still hiring the same people they always have for leadership roles. The shift has resulted in a two-tiered workforce—one in which employees with college degrees continue to climb the corporate ladder, while skilled workers without degrees hit invisible ceilings.
This pattern isn’t necessarily a surprise. A skills-based hire may have strong technical competence in their specific area of expertise but probably lack some of the foundational components required to excel in a leadership role—skills like budgeting, communication, problem-solving, organizational dynamics and strategic thinking. Well-rounded, comprehensive degree programs help students master these topics, says Titus.
“When I send a memo to my team, I’m referencing stories from history books or political science courses,” he says. “Making something relatable to broad groups of people with diverse skills and backgrounds comes through understanding multiple viewpoints, not just zeroing in on a particular skill.”
It’s relatively straightforward for employers to upskill workers on the technical aspects of their job. It’s much more challenging to teach them soft skills.
“I use the example of empathetic listening and picking up nonverbal cues,” he says. “That’s a very different type of a skill to teach to someone than a specific skill around a technological advancement.”
Adding AI to the Mix
The rise of artificial intelligence, he argues, only further underscores the value of foundational knowledge. AI can perform tasks flawlessly, but it lacks empathy, understanding and grace—qualities that tend to emerge from immersion in educational environments. Additionally, as companies ramp up their integration of AI, they need emotionally intelligent employees to help manage that process.
“A frontline manager 10 years ago probably didn’t have to worry about how to incorporate AI with their existing staff,” he says. “A manager today needs to be able to do that…. You need a manager who’s able to navigate both the technological side of it but also the human aspect of it. And those are the types of skills that come out of a comprehensive degree.”
Skills will always be a valuable currency, Titus says. But employers should also understand they’re not the be-all and end-all.
“Yes, there’s a level of AI and technology and people that just need to have specific skills to do the job, but there is another layer on top of that,” he says. “[Companies need employees] to understand the interdisciplinary and the cross-functional aspects of where the workplace is heading.”
He also points out that many colleges and universities have gone to great lengths to revamp their curriculum so that it better aligns with workforce needs. They’re emphasizing experiential learning opportunities like internships, and they’re tying coursework to specific skills and outcomes.
“It’s not your grandfather’s or your grandmother’s college and university,” he says. “A lot of organizations... have really made a conscious decision to dig in and map the curriculum to ensure that what you’re learning is proving the outcomes that are necessary in today’s world.... The workforce is evolving very quickly but so is higher education.”
Companies Still Quietly Support Degrees
Titus feels strongly about the continued value of higher education. And it is truly just his opinion: Company leaders also seem to feel this way, even if they aren’t necessarily saying it out loud.
For example, despite publicly embracing skills-based hiring, employers continue spending millions of dollars on degree programs through tuition reimbursement programs.
Additionally, an April 2025 survey by TestGorilla, a company specializing in talent-sourcing and skills assessments, found that 53% of U.S. and U.K. employers have eliminated degree requirements.
However, 41% of employers think it’s more important for candidates to have degrees than it was five years ago. This dichotomy, Titus says, reveals the hidden truth.
The Path Forward
So, where should employers go from here? The solution isn’t either-or thinking, he says. It’s pursuing both skills and degrees, with intentionality.
Savvy leaders, Titus says, move beyond the degree-versus-skills binary and start by clarifying the problems they’re trying to solve. Companies don’t have identical issues and, as a result, there’s no one-size-fits-all solution to their hiring needs—no matter which approach is currently trendy.
“I really wish more companies would take the time to understand and assess their current workforce,” he says. “Before you go and make a decision... understand where your workforce is and understand what the jobs are that are needed. I understand, what are the requirements of those [jobs] not only today, but five years from now... You need to start where you’re within. You need to do an assessment of where you currently stand. And, also, where do you want to go?”
Beyond that, Titus says, companies can and should be using perks like tuition assistance more strategically. Employers can maximize the impact of these benefits by investing in education that supports both individual growth and broader business objectives. That may mean prioritizing funding for degrees or credentials that directly align with organizational priorities, rather than offering open-ended reimbursement.
Whichever path they choose—whether that’s skills, degrees or, most likely, a mix of both—employers also should be more transparent with workers, says Titus. They should strive to be clear and upfront about career progression and what it takes to rise through the ranks at their organization.
“American workers deserve better than a false choice between skills and education,” he says. “They deserve hiring systems that recognize talent wherever it’s developed, combined with honest conversations about the requirements for advancement.”
How to Navigate Your Career Like a Pro
Look to the future. After determining your ideal job, spend some time researching where that specific role is heading. Then, determine whether your skills, experience and education are aligned with that future scenario, says Titus. If not, develop a roadmap that will help you close that gap. “If your employer’s not doing that assessment for you, you should be doing that in your own career,” he says.
Evaluate education. If you are thinking of going back to school, choose wisely. “Is the education that you’re incorporating into your curriculum career-relevant and up-to-date with what the world looks like today?” says Titus. “If a college or university is not incorporating AI into their curriculum, for example, that should tell you something.”
Climb the lattice, not the ladder. You might think a successful career path is one that shoots straight up. But, in reality, most professionals achieve their dreams by moving up, down, backward, forward and side-to-side, says Titus. “There’s definitely value in pivoting if it adds to your portfolio,” he says. “Don’t be afraid to scale the lattice in your career, as opposed to climbing the ladder.”
Promote your outcomes. Credentials are undoubtedly important, but results often matter more. If you’re in the running for a management position, tout the fact that you have a documented track record of building high-functioning teams, energizing your staff and driving growth, says Titus. “In today’s economy, [hiring managers] are wondering, ‘Hey, can you do the work? Can you have you done it before? Can you do it well?'”
This article was first published in the May 2026 issue of SUCCESS Digital Edition. Read the entire issue for FREE here.
Featured image from PeopleImages/Shutterstock
