Should we drop degree requirements in 2025?

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You've likely heard the buzz - companies are starting to drop degree requirements for some roles and place a greater emphasis on job skills & experience. 🔨 > 🎓️ 

According to Intelligent.com, in 2023 55% of orgs removed bachelor’s degree requirements for certain roles and in 2024 45% of companies plan to further reduce degree requirements for positions.

But why? Here are a few stats:

• Skill-based hires are 10% happier than degree-based hires - Deloitte

• Skill-based hiring orgs are 98% more likely to retain high-performers - Deloitte

• Skill-based orgs are 107 % more likely to place talent effectively - Deloitte

• Companies who embraced skill-based hiring saw an overall 20% jump in retention - Harvard Business Review

So, which industries is this happening in most?

• 72% Information Services

• 62% of Software Companies

• 55% of Construction Companies

What are some of the preferred credentials in place of degrees?

• 75% value certificate programs as an alternative

• 67% use test alignments in the hiring process

• 80% prioritize candidate practical experience 

What are some of the challenges in implementing a skill-based approach?

• Between 2017 and 2023 job postings that did not require a college degree rose by 34% - but hiring of non-degree holders only increased by 1%!

• Organizations report hiring biases & a lack of alternative credential recognition as a challenge to implementing skill-based hiring approaches.

Is this change right for my org?

Companies like IBM, Google, and Bank of America are all in on skill-based hiring approaches - but is it right for your org?

We have a report coming soon with more data to help you decide.

Reply to this email and I’ll get you on the short list.

See you at the next JD roundup.

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