The tried-and-true playbook for climbing the corporate ladder is becoming obsolete. No longer does simply getting a degree guarantee career success; instead, employers are increasingly evaluating candidates based on demonstrable skills โ and credentials that prove them.
And a new report from Western Governors University released today, shared first exclusively with Fortune, underscores that shift: 86% of employers now see nondegree certificates as valuable indicators of job readiness.ย
According to the schoolโs president, Scott Pulsipher, technological innovation is making it essential for professionals of all ages to acquire in-demand skills, making lifelong learning increasingly the norm.
โThe pace of change and the skills required to be highly productive in the world of work, itโs accelerating, meaning itโs just shortening the shelf life of the skills that we have,โ Pulsipher told Fortune.
But degrees are far from irrelevant. The report found that 68% of employers still consider degrees important.
โDegrees actually still matter quite a bit, and what weโre seeing is that hiring decisions are increasingly relying on a portfolio of evidence,โ Pulsipher said. In some instances, the combination of a work-relevant certification or degree with experience can double a candidateโs chances of getting hiredโas compared to lacking a credential.ย
Sorting the signal from the noise when upskilling
Not all career professions value skill-demonstrating certifications equally. Theyโre highly sought-after in fields like technology, construction, and health care; in legal, hospitality, and marketing roles, they carry less weight.
But even in fields where credentials matter, finding the right ones can be overwhelming. Pulsipher noted that of the millions of credentials floating around the education and workforce landscape, โprobably less than 1%โ are truly industry-recognized and worth a candidateโs time.
For those in tech, he pointed to NICE certifications for cybersecurity and CompTIA credentials as reputable and widely accepted. WGU often incorporates these directly into its degree programs.
Pulsipherโs advice for finding the right pathway: Start with the job, not the credential. After researching the high-demand roles, identify the skills required and find learning pathways that end with industry-accepted credentials tied to those skills.
Itโs also critical that no matter what, professionals ensure any upskilling is timely and relevant to their career goals. But above all, you canโt go wrong with improving your tech skills, no matter your field or role: โIt just is impacting everything.โ
The shifting hiring currencies across the workforce
Putting credentials aside, the report also found that 78% of employers said work experience is equal to or more valuable than a degree. Pulsipher said young professionals in particular often undervalue hands-on experience.
โItโs not about how you acquired what you can doโitโs what do you know and what can you do with what you know,โ he said.
This approach is increasingly reflected among business leaders. At Palantir, for example, educational pedigree matters little once someone is hired. Working for the tech giant is becoming its own form of credential โseparate from class or background,โ according to CEO Alex Karp.
โIf you did not go to school, or you went to a school thatโs not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, youโre a Palantirianโno one cares about the other stuff,โ he said during an earnings call earlier this year.
โThis is by far the best credential in tech. If you come to Palantir, your career is set,โ Karp added.
And itโs not just tech. Across industries, top employers arenโt โeven talking about degreesโ anymore, Great Place to Work CEO Michael Bush previously told Fortune. โTheyโre talking about skills.โ
Written by Preston Fore for Fortune as โSkills are the new hiring currency: 86% of employers say certificates show real job readinessโ and republished with permission.
