In recent years, there has been an increasing discussion about how practical professional skills are becoming just as important as, or in some cases even more important than, formal qualifications in the labour market. As technological advancement accelerates, new roles emerge, and workplace expectations continue to evolve, employers can no longer rely solely on a candidate’s educational background when assessing suitability for a position. What matters increasingly is how effectively candidates can apply their knowledge in practice.

Skills-Based Hiring

The concept of skills-based hiring focuses primarily on whether a candidate possesses the competencies and expertise required to perform a specific role successfully. This does not mean that degrees have lost their value. In many professions, formal education remains a fundamental requirement, and for certain positions it is mandated by regulation or industry standards.

However, in other fields, a degree alone is becoming less and less of a guarantee that someone is truly well-suited for a role.

This shift is particularly visible in technology-related sectors. According to LinkedIn’s 2025 Future of Recruiting report, skills-based hiring is becoming increasingly important in recruitment. LinkedIn data shows that 26% of paid job postings in 2023 did not require a university degree, compared to 22% in 2020. While this does not suggest that degree-free hiring has become the norm, it clearly indicates the direction of change: employers are becoming more interested in candidates’ actual capabilities and practical expertise. [1]

One of the key reasons behind this trend is that work itself is evolving rapidly. According to LinkedIn’s 2025 Work Change Report, approximately 70% of the skills used in most jobs are expected to change by 2030. In an environment where new technologies and ways of working constantly emerge, a degree earned several years ago may not fully demonstrate a candidate’s ability to adapt to current market demands. [2]

In practice, this means that recruiters increasingly value factors such as expertise in specific technologies, project experience, problem-solving abilities, and the capacity to apply knowledge in real-world situations. For example, when recruiting for an IT role, simply knowing whether a candidate holds a degree in computer science may provide limited insight. Equally important are the systems they have worked with, the technologies they have used, the projects they have contributed to, and the challenges they have successfully solved.

The Challenge

At the same time, skills-based hiring presents new challenges for employers. If educational background and previous job titles are no longer sufficient indicators of suitability, recruitment processes must be designed to assess actual competencies more accurately.

As a result, practical assignments, case studies, technical assessments, structured interviews, and other competency-based evaluation methods are playing an increasingly important role. According to an OECD analysis published in 2025, employers continue to rely heavily on work experience and educational qualifications as signals of competence. However, a growing number of organisations are already using, or planning to implement, pre-employment assessments and other methods that directly evaluate candidates’ knowledge and skills. [3]

This shift also sends an important message to job seekers. Earning a degree remains valuable, but it is increasingly insufficient on its own to secure career success. Practical experience, continuous learning, and up-to-date professional knowledge are becoming more valuable than ever. This is particularly true in sectors where technological developments drive rapid change.

An online course, professional certification, personal project, or internship experience may often demonstrate practical expertise that a degree alone cannot fully showcase.

The Opportunity

It is important, however, to consider the other side of the debate. Removing degree requirements from a job advertisement does not automatically mean that an organisation has adopted a truly skills-based hiring approach. A 2025 analysis by Profession.hu suggests that while practical knowledge and specialised skills are becoming increasingly important in many roles, a university degree remains a key entry requirement for numerous positions. [4]

The real change, therefore, is not whether a job advertisement includes a requirement for higher education, but whether the selection process genuinely measures the competencies necessary for success in the role.

From a recruitment perspective, this is particularly significant. If an organisation requires a degree that has little relevance to the actual work involved, it may unintentionally exclude candidates who possess the right expertise and experience. In such cases, not only does the candidate lose an opportunity, but the employer also narrows its own talent pool.

One of the greatest advantages of skills-based hiring is that it can open doors for talented professionals who have acquired the necessary expertise through non-traditional learning paths.

Conclusion

Ultimately, the conversation is not about degrees becoming obsolete. Rather, a degree alone is becoming less sufficient as a measure of a candidate’s suitability. As the labour market continues to evolve, employers must identify which skills and knowledge are truly essential for a given role and determine the most effective ways to assess them.

As recruitment continues to develop, the key question is unlikely to be “degree or skills.” Instead, it will be understanding when each provides the most relevant insight into a candidate’s potential.

A degree can still be highly valuable. The real question increasingly becomes: What can a candidate demonstrate beyond the degree itself?

References

[1] LinkedIn (2025). The Future of Recruiting 2025.
LinkedIn – The Future of Recruiting 2025

[2] LinkedIn (2025). Work Change Report: Skills for jobs set to change by 70% by 2030.
LinkedIn – Work Change Report 2025

[3] OECD (2025). A Skills-First Labour Market – Promoting skills-first hiring and talent management.
OECD – A Skills-First Labour Market

[4] Profession.hu (2025). Diploma helyett készségek – kik azok az újgalléros munkavállalók?
Profession.hu – Diploma helyett készségek