Advances in technology and artificial intelligence (AI) are transforming the workplace. Many predict that companies will begin to move away from degree-based hiring and focus more on skills.

Will academic degrees truly lose their significance? Don’t worry—the shift toward skill-based hiring isn’t happening as quickly as expected.

In fact, companies still consider degrees, work experience, certifications, and skills as key factors when searching for potential employees.

Finding candidates who are truly ready for the job and a good fit for the company’s needs remains a challenge. For this reason, diplomas and degrees are still used as initial indicators in the selection process.

Academic Degrees and Work Experience Are Still Key Considerations

Although the trend toward skills-based hiring is gaining momentum, academic degrees have not entirely lost their significance.

Companies still consider educational background, institutional reputation, work experience, and even the companies where candidates previously worked.

According to a recent report by Coursera, approximately 68 percent of companies still view academic degrees as an important factor in the hiring process.

However, this does not mean that degrees are always prioritized over skills. In fact, companies tend to look for a combination of education, experience, and skills relevant to the job.

Work experience actually carries even greater weight. This is because a candidate’s experience gives companies insight into how they actually apply their knowledge and skills in the real world of work.

Digital and AI Skills Are Increasingly in Demand

Technological changes have also led to an evolution in the types of skills companies seek. The ability to use digital tools and leverage AI is becoming increasingly prioritized.

From the company’s perspective, using AI in the recruitment process does make the selection process more efficient. However, its implementation requires the right systems and competent personnel.

For this reason, the selection process based on resumes, education, and work experience remains a widely used approach. This method is relatively easier to implement for obtaining an initial assessment of a candidate’s competencies.

Meanwhile, job seekers also need to build skills that can be demonstrated, rather than simply listing them on a resume. For example, through work experience, internships, projects, portfolios, certifications, or organizational experience.

Skills vs. Degrees: Which Is More Important?

Ultimately, today’s job market still requires a balance between degrees, skills, and experience.

Academic degrees remain the gateway to the workforce. Meanwhile, relevant experience and abilities are key factors in assessing a candidate’s suitability for the position they’re applying for.

So, rather than agonizing over whether skills or a degree are more important, it’s better to develop both simultaneously.

Enhance your competencies, gain as much experience as possible, and stay up-to-date on technological advancements relevant to your target field.

But beyond all that, also make sure the company you’re applying to has a positive work culture and clear career prospects. Choose a company with a good reputation and credibility in its field, such as PT Serasi Autoraya or SERA.

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