A growing number of employers are removing college degree requirements from job postings as they search for new ways to address talent shortages and expand candidate pools, according to Korn Ferry.
Recent LinkedIn data shows that 30% of paid job postings no longer require a professional degree, up from 19% in 2019. This indicates rising interest in skills-based hiring, a strategy that prioritizes demonstrated abilities over educational credentials or traditional career paths.
Talent Shortages Persist Despite a Softer Job Market
The trend comes as employers continue struggling to fill key roles. Nearly three-quarters of organizations worldwide report difficulty finding skilled workers, a significant increase from a decade ago.
As a result, many companies are placing greater emphasis on what candidates can do rather than where they studied or previously worked. The change could benefit workers without degrees while creating a more competitive environment for recent graduates entering the workforce.
Employers are also exploring skills-based compensation models. Korn Ferry found that more than two-thirds of organizations plan to incorporate skills into reward and pay structures by 2028, reflecting an effort to align compensation with workforce capabilities.
Turning Strategy Into Practice Remains Difficult
Despite growing interest, many organizations have yet to fully implement skills-based hiring.
Only a small share of companies say they are prepared to operate as truly skills-based organizations. One challenge is determining which skills are most critical to business success and which can be developed internally or sourced externally.
The transition often requires companies to rethink hiring practices, workforce planning, employee development, and performance management. That level of organizational change can be difficult to execute consistently across large workforces.
AI Is Complicating Workforce Planning
As artificial intelligence transforms jobs and workflows, employers face growing pressure to identify not only the skills they need today but also those that will matter in the future. According to estimates from the World Economic Forum, nearly 40% of workers’ core skills could require updating by 2030.
That reality has left many organizations embracing the concept of skills-based hiring while still working through how to apply it effectively.
For now, skills-based hiring continues to gain momentum, but many employers are still determining how to build hiring and talent strategies around a workforce whose skill requirements are changing faster than ever.
