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Skills over degrees: Indian employers embrace practical expertise in hiring

According to a report by hiring platform Indeed, employers are increasingly prioritising skills over degrees, reshaping the job market and opening doors for non-traditional talent

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Abhijeet Kumar New Delhi

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In a transformative shift reshaping India’s job market, employers are increasingly prioritising skills and experience over formal degrees, according to a recent survey by Indeed. The report revealed that 80 per cent of Indian employers have adopted a skills-first hiring strategy, signalling a change in how companies are evaluating talent in the middle of rapid technological advancements and evolving industry demands.
 
This trend is particularly pronounced in high-growth sectors such as technology, artificial intelligence (AI), and cybersecurity, where employers are seeking candidates with hands-on capabilities rather than traditional academic credentials, the report said. As businesses grapple with the pace of innovation, the ability to demonstrate job-ready skills has become the new gold standard for hiring, it added.
   
The survey was conducted between December 2024 and January 2025, and reached 6,126 employees and job seekers across Singapore, India, Japan, and Australia, with 2,507 respondents from India alone.
 

Skill-based hiring becoming prevalent

  The Indeed survey found that 60 per cent of workers believe skills-based hiring will become even more prevalent by 2025, prompting many to invest in certifications, specialized training, and hands-on learning. Employers are increasingly seeking candidates who can demonstrate problem-solving, adaptability, and technical expertise, making these skills indispensable for career advancement.
 
However, despite the growing focus on skills, 42 per cent of hiring managers reported difficulties in finding candidates with the necessary expertise. To address this gap, companies are taking proactive measures, including removing degree requirements, re-evaluating job descriptions, and expanding hiring criteria to attract a more diverse talent pool, the report highlighted.
 
“Employers are recognizing that the ability to apply skills in real-world scenarios is becoming more important than academic qualifications,” said Rohan Sylvester, Talent Strategy Advisor at Indeed India. “This change is shaping both hiring strategies and workforce development, ensuring businesses remain competitive in a rapidly evolving market.”
 

Key skills in demand

  The survey highlights a mix of technical and soft skills as essential for today’s workforce. Teamwork, communication, adaptability, and critical thinking are among the most sought-after qualities, as businesses prioritize collaboration and problem-solving in dynamic environments.
 
Sylvester added, “Hiring is evolving fast. Degrees still matter, but they’re no longer the only ticket to a great job. Employers now care more about what candidates can do than just where they studied. With technology advancing so quickly, companies need people who can adapt, problem-solve, and apply their skills in real-world scenarios.”
 
The survey noted that companies that have embraced skills-first hiring reported significant benefits:
 
> 38 per cent of employers say employees with transferable skills contribute across multiple roles.
 
> 31 per cent have observed an improvement in candidate quality.
 
> 30 per cent report broader business advantages, including increased innovation and diversity.
 
The momentum behind skills-based hiring shows no signs of slowing down. Among companies yet to adopt this approach, 82 per cent plan to do so in the near future. As India’s workforce adapts to digital transformation and shifting industry requirements, skills-first hiring is emerging as a strategic imperative for businesses aiming to stay ahead.
 
The report noted that for job seekers, the message is clear: degrees still hold value, but skills are becoming the real differentiator.

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First Published: Feb 20 2025 | 6:15 PM IST

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