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29 Aug 2025
8 mins

2025 Hiring Trends: Are Employers Prioritizing Skills Over Degrees? 

Written by: Nikhila Suresh

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The world of work in 2025 is changing quicker than ever before. Employers are being more open-minded by not only looking for graduates with higher degrees but also by considering professionals who have the necessary skills to start working right away. As AI, robotics, and digitization revolutionize various sectors, companies are looking for people who can take in, learn and offer their skills straight away. 

So, is it that in 2025 employers really give precedence to skills over degrees? The answer is affirmative but with a twist: the most valuable candidates are those who combine both, and online degrees are making that possible. 

Why Employers Are Shifting Towards Skills 

1. Technology Is Outpacing Traditional Curricula 

The new areas of data science, AI, supply chain analytics, and green technology are changing so fast that even the traditional way of teaching cannot keep up with them. As per India Today, employers are looking for such candidates who can utilize the latest skills right from their first day. 

A Forbes India article says that the trend of skill-based hiring is not only true for India but is a global phenomenon. 80% of the employers in India give more importance to the practical skills rather than getting a formal degree, when industries face a skill gap of 47 million by FY27 projection 

2. Skill Premiums in the Job Market 

A Financial Express–Naukri survey revealed that in spite of the fear of AI taking over jobs, 72% of Indian employers are optimistic about job creation in 2025 and the highest demand will be for candidates skilled in new-age technologies. Correspondingly, skills in AI and green jobs have become a significant source of wage premium over the traditional qualifications. 

According to the World Economic Forum’s Future of Jobs report, one of the major highlights is the demand for skills like analytical thinking, the ability to bounce back, and familiarity with technology which are more important than having credentials. 

3. Rising Skills-Based Hiring 

According to the reports by Times Now and LinkedIn Pulse say that the Indian employers gradually shifting to skills-first hiring. In reality, 80% of Indian employers decide to give more importance to skills than to degrees, and 30% of them progressively start using skill-based recruitment methods. 

4. Companies Removing Degree Barriers 

LinkedIn data reveals that 19% of U.S. job postings digitally that no degree is required, which is a noteworthy increase from 15% in 2021. 

According to Forbes, top companies such as Blackstone, Walmart, and Microsoft are going forward with the skills-first approach to recruiting, notwithstanding the fact that they still hold a high regard for the graduates of elite institutions. 

5. Rapid Digital Transformation in Every Industry 

Artificial Intelligence, data analytics, and automation are the new tools that even traditional sectors like banking, healthcare, and manufacturing are embracing. To be up to date with industry trends, workers have to go through reskilling every 2-3 years. The speed of change in the professional world is such that the relevance of degree programs (usually 3-5 years long) is increasingly questioned, thus shorter skill-based learning programs are becoming more and more valuable. 

6. Employee Retention and Upskilling Opportunities 

Studies have indicated that employees whose skills have been the deciding factor for their hiring (as opposed to having a degree) are more capable of adjusting and are willing to learn all through their careers. Besides, they also demonstrate greater loyalty to the company when an employer dedicates resources to them for upskilling purposes, thus turning them into a valuable resource for the company over an extended period of time. 

The Indian Context: Why Upskilling Matters Now 

It is not an easy path Indian human resources have to choose. According to Forbes India, India is probably going to lack almost 47 million skillful workers in the next 10 years in the sectors of electronics manufacturing, semiconductors, and healthcare. 

  • The shortfall implies that companies will not be able to depend solely on the traditional ways of recruiting graduates. These companies must have employees who possess the right qualifications and have been trained in the most recent technologies and management practices. Online degrees are playing the role of a bridge to close the demand-supply gap by: 
  • Delivering programs that are focused on the industry (e.g., MBA in Logistics & Supply Chain, BCom with ACCA) and are certified by the experts in the particular sector. 
  • Using National Education Policy (NEP 2020) standards as a guide for instructional reform for vocational and applied learning. 
  • Providing workers with continuous upskilling opportunities so that they can be prepared for the new economy. 

Global Perspective: Skills Still Reign Supreme 

On a global scale, tech giants such as Google, Apple, and IBM have also eliminated strict degree requirements and are now focusing on skills and portfolios. However, the top candidates are those who manage to skill and knowledge certification through the completion of an online degree while at the same time practical working experience. 

A report issued by the LinkedIn Asia-Pacific economist highlights that 20% of the job titles currently existing were not there 20 years ago. This fact lays the need for a learning process that is not only adaptable but also continuous. The online degree is a perfect match for this requirement as it is a guided yet flexible foundation that keeps up with the changes in the industry. 

How Online Degrees are Bridging the Skills-Degrees Gap 

1. Integration of Certifications 

Top online universities form collaborations with renowned global platforms such as Coursera, Microsoft, Google, or AWS to deliver certifications along with degrees. For instance, a student of an online MBA in Business Analytics may end up not only with an MBA degree but also with certifications in Power BI, Tableau, and SQL. 

The double advantage of the candidates becomes more employable and adaptable, thus allowing them to have a competitive advantage in the labor market. 

2. Flexibility for Lifelong Learning 

Online programs provide more flexibility as they offer the possibility of combining work and study without the need for a break. This kind of adaptability is very much appreciated by employers as it showcases qualities such as resilience, time management, and a growth mindset – virtues that are vital in today’s work environment. 

Just to illustrate the point, a human resources mid-career professional may opt for an online MBA in HRM to not only acquire the latest HR technological tools but also develop leadership skills, while continuing to gain experience on the job. 

3. Project-Based and Practical Learning 

Graduates that lack real-world readiness are a problem that hiring managers have been complaining about recently. These problems are somewhat resolved by online degrees that have practical assignments, live case studies, and simulations as part of the curriculum. As a result, students can showcase the hands-on application of their skills, which is the trend employers set when choosing what is more important: theoretical grades or skills 

What This Means for Learners 

Students and professionals of today should take note of the following points: 

  • Don’t simply get a degree – get one with associated skills. Online degrees that provide certifications, projects, and hands-on experience should be your choice. 
  • Present evidence of your skills –Create portfolios, emphasize projects, and give proof of the results of your learning activities. 
  • Practice continuous learning – The upskilling process via online programs is your ticket to a long-term career in the fields that are rapidly changing. 
  • Don’t forget to improve your soft skills as well– Employers claim that alongside technology, adaptability, creativity, and leadership are the most valuable personal qualities. 

Conclusion 

The hiring trends of 2025 clearly speak out: employers are looking for skills rather than degrees, but the best solution is the combination of both. The degree is still important as it gives the candidate some credibility and a certain structure, but it is the practical, industry-ready skills that create the difference. 

It is precisely at this point that online programs at Online Manipal become a factor. With courses that also include globally recognized certifications, live projects, and case studies, learners get not only academic knowledge but also the required hands-on expertise that the current employers demand. The professional can upgrade his/her skills through online learning without stopping the career. However, the industry-relevant tools and insights exposure make sure they are competitive in a fast-changing job market. 

Employers, therefore, get the benefit of a qualified workforce who are job-ready from the very first day. For learners, it is the key to the future of their career, their adaptability, and their employability in the skills-first era. 

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Nikhila is an experienced content writer specializing in EdTech for 5+ years. Over the years, she has worked on various content marketing initiatives, including blogs, newsletters, PR articles, website content, and more, helping brands enhance their digital reach. She is passionate about blog writing and stays updated with the latest marketing trends to create impactful and engaging content.

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