The job market is evolving rapidly, with on-the-job experience gaining more value than formal degrees in many industries. Employers are re-evaluating hiring criteria as they face challenges in sourcing quality candidates, while job seekers are increasingly questioning the necessity of traditional qualifications.
A recent survey highlights this shift:
55% of employers and 67% of employees believe experience is more valuable than a degree.
70% of job seekers agree that hands-on skills matter more in securing a role.
76% of employers are expanding their learning and development programs to train hires on the job.
As technology advances—particularly with innovations like AI—traditional education struggles to keep pace with evolving industry needs. Businesses now prioritise candidates who can adapt quickly, demonstrate real-world problem-solving, and integrate seamlessly into workplace environments. While degrees still hold value in specialised fields, many employers now view practical skills and experience as stronger indicators of job readiness.
This growing skills-first hiring trend not only broadens the talent pool but also promotes diversity and creates more equitable job opportunities. Rather than limiting hiring to candidates with formal qualifications, companies are investing in upskilling, reskilling, and internal training programs to cultivate talent.
In a recent discussion, Remi Marcelin, Group Marketing Manager at people2people, explored the increasing importance of experience over degrees in hiring decisions and how businesses are adapting to this new landscape.
Remi highlighted the growing disconnect between traditional education and workplace demands, explaining that employers now favour skills that demonstrate adaptability and real-world application. “Hiring trends are shifting, with practical experience now carrying more weight than formal qualifications. Employers are prioritising candidates who can hit the ground running rather than those who only bring theoretical knowledge.”
This trend is also driven by recruitment challenges. With talent shortages in many sectors, businesses can no longer afford to limit themselves to degree-qualified candidates. Instead, they are looking for individuals who show potential and the ability to grow within a role. “Employers are finding that on-the-job experience often translates to faster onboarding and better long-term performance. Candidates with hands-on skills tend to integrate more easily into workplace dynamics.”
Beyond hiring challenges, Remi also pointed out that technology is reshaping the skills required for many jobs. The rise of automation and AI means that some degrees may not adequately prepare graduates for the workforce. “With industries changing so quickly, traditional education often struggles to keep up. Employers need talent that can adapt, learn on the go, and apply problem-solving skills in real time.”
As a result, businesses are shifting towards upskilling and in-house training programs to bridge knowledge gaps and prepare employees for evolving job demands. Remi explained, “Seventy-six percent of employers are now investing more in learning and development programs. They recognise that developing talent internally is often more effective than waiting for a perfect degree-qualified candidate to appear.”
With experience becoming a key hiring factor, both job seekers and employers must adapt their strategies to stay competitive. Here’s how:
Highlight practical experience – Showcase hands-on skills, project work, internships, or freelance experience to demonstrate real-world problem-solving abilities.
Develop industry-relevant skills – Focus on continuous learning, whether through online courses, certifications, or specialised training programs.
Showcase adaptability – Emphasise examples of how you have successfully learned new tools, systems, or industry trends.
Build a strong portfolio – In fields like design, marketing, and tech, a well-documented portfolio can often hold more weight than a degree.
Leverage networking – Connecting with professionals and industry leaders can open doors to opportunities where skills matter more than formal qualifications.
Prioritise skills-first hiring – Look beyond degrees and focus on a candidate’s ability to perform the job through practical assessments and competency-based interviews.
Invest in training programs – Upskilling employees internally helps fill talent gaps and future-proofs the workforce.
Expand talent pipelines – Consider candidates from diverse backgrounds who bring hands-on experience, even if they don’t have a formal degree.
Use practical hiring assessments – Case studies, job simulations, and real-world problem-solving tasks can help assess a candidate’s readiness more effectively than their academic credentials.
By embracing a skills-first approach, businesses can attract and retain top talent, while job seekers can position themselves as adaptable, valuable candidates. The future of hiring is evolving—are you ready to adapt?
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In business since 2002 in Australia, NZ, and the United Kingdom, people2people is an award-winning recruitment agency with people at our heart. With over 12 offices, we specialise in accounting and finance, business support, education, executive, government, HR, legal, marketing and digital, property, sales, supply chain, and technology sectors. As the proud recipients of the 2024 Outstanding Large Agency and Excellence in Candidate Care Awards, we are dedicated to helping businesses achieve success through a people-first approach.
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