The Decline of Degree Requirements in Hiring
Employers are rapidly abandoning degree requirements as AI reshapes the job market, leaving recent graduates questioning whether their expensive diplomas were worth the investment. According to Great Place to Work CEO Michael Bush, degrees are becoming irrelevant in today’s workforce—skills, not credentials, now drive hiring decisions.
Great Place to Work surveys 23,000+ companies annually across 170 countries, analyzing what makes top employers stand out. In collaboration with Fortune, it compiles the 100 Best Companies to Work For list—and Bush confirms a major shift in hiring priorities.
Why Skills Are Replacing Degrees
“Almost everyone realizes they’re missing out on great talent by requiring degrees,” Bush tells Fortune. “The focus now is on skills development—what abilities you have and which will be needed in the future.”
This skills-first hiring trend is global because degrees often highlight knowledge, not practical ability.
“When matching complex problems with problem-solvers, a degree doesn’t help,” Bush explains. “What matters is perseverance, passion, and hands-on skills—now, AI helps match talent to challenges using skills databases, not degrees.”
EQ Over IQ: The New Hiring Priority
Success in today’s job market hinges on attitude and emotional intelligence (EQ)—not just qualifications. Major companies like Google, Microsoft, IBM, Apple, and Deloitte have all dropped degree requirements, opting for skills-based hiring instead.
Bush attributes this shift to two factors:
- A talent shortage forcing employers to look beyond traditional credentials.
- More leaders without degrees making hiring decisions, proving credentials aren’t essential.
Even Mark Zuckerberg, a Harvard dropout who built Meta’s $1.4 trillion empire, hires based on mastery of skills—not diplomas.
The Rise of Psychometric Testing
Employers now use psychometric assessments and unconventional interview tactics (like observing how candidates handle coffee cups or odd questions) to gauge self-awareness and problem-solving skills.
Are Degrees Still Worth It? Gen Z Says No—But Some Pay Off
Many young professionals now see their degrees as “worthless” in today’s job market. According to Indeed, over half of Gen Z grads believe their education was a “waste of money.”
However, certain fields still offer strong ROI:
- STEM degrees (e.g., aerospace engineering) lead to mid-career salaries of $125K+ (Federal Reserve Bank of New York).
- Advanced degrees (especially in medicine) unlock $200K+ salaries.
The Bottom Line
While degrees aren’t completely obsolete, employers increasingly prioritize skills, adaptability, and EQ. For job seekers, upskilling and demonstrating real-world abilities may matter more than a diploma.
As Bush puts it:
“It’s about true performance—not barriers that keep great talent out. Degrees have a way of doing that.”
For more insights on future-proof careers and skills-based hiring trends, stay tuned to Fortune and Great Place to Work.
