Skills-based hiring is growing. Employers eager to find talent in today’s ultra-competitive hiring market are embracing the idea of hiring employees based on demonstrated skills, not just educational attainment. And the change is long overdue.
Starting in the early 2000s, employers began adding a bachelor’s degree requirement to jobs that previously required less education, even when the position requirements did not change. This trend, coined degree inflation, gave employers an easy proxy for employability skills that were increasingly in demand. The downside: Millions of qualified workers were suddenly unable to access jobs traditionally open to them. A study by Opportunity At Work found requiring a four-year degree screens out 83% of Latinx people, 81% of rural Americans, and 76% of Black people.