Recently, I had a conversation with a senior researcher working on a project for a consumer goods multinational corporation (MNC) at one of the top institutes abroad. Insightful and articulate, he holds a PhD from a prestigious university and has a remarkable ability to analyze social dynamics. I am withholding his name because our discussion took place informally during a friend’s lunchtime gathering.
What he shared with me could shock parents who are eager to push their children towards earning prestigious degrees from well-known colleges or universities after clearing competitive exams. For many of these parents, degrees from reputed institutions hold more value than acquiring practical knowledge or skills, which they believe can be gained later, once a job is secured. Colleges with better placement records are often preferred for admissions.
“Things are changing globally,” he told me. “Industry professionals no longer prioritize degree holders. Those with skills, even without degrees, often have better employment prospects, especially in technical roles.” I commented that such individuals might be paid less in comparison. He replied, “Not at all. In fact, skilled professionals are often paid more. For instance, a professor I know at a university earns $10,000 a month, but someone with comparable skills, but no degree, earns $15,000.”
Curious, I asked him about the prevalence of this trend in industries, particularly in Western countries and some wealthy Asian nations. He estimated, “This shift is happening in about 40% of cases, possibly more. Startups, in particular, prefer hiring skilled individuals over degree holders.” When I wondered if acquiring skills might be more expensive than obtaining a degree, he said, “Times are changing rapidly. People have countless affordable opportunities to acquire skills, especially with advancements in artificial intelligence (AI), which has made learning even cheaper.”
This conversation reminded me of an interaction I had with a senior physician from a renowned American hospital during an informal meeting at a hotel in Ahmedabad. An Indian settled in the U.S., he mentioned, “My searches on an AI platform reveal that the medical advice I give to my patients closely matches what AI provides. The day isn’t far when patients will receive expert advice directly from AI, reducing our importance.”
The researcher later shared links supporting his views. One of them was from LevelUP Human Capital Solutions, a New York-based hiring company. According to their blog, “The changing landscape of employment is reshaping how employers value and hire candidates. Recent years have witnessed a significant transformation in job roles, driven by remote work, technological advances, and the globalization of industries. Now more than ever, job roles demand adaptability, digital literacy, and specialized skills.” The blog emphasized, “Employers are now actively seeking candidates with precise, job-relevant skills, acknowledging that degrees, while valuable, may not consistently align with the rapidly changing demands of certain industries.”
Another reference was from Singapore Business Review, which stated, “7 in 10 professionals prioritize building skills over degrees.” Citing a LinkedIn report, it mentioned, “73% of professionals in Singapore now focus on skill-building rather than degrees for career advancement. More than half (62%) believe degrees are less significant for job eligibility compared to 20 years ago.” The report also highlighted that 79% of Singaporeans feel employers value diverse skill sets and experiences over specialization, and 39% of companies prioritize technical skills over formal education qualifications (8%).
A third source, Forbes, in an article titled "90% of Companies Make Better Hires Based on Skills Over Degrees" by Cynthia Pong, emphasized, “The shift to skills-based hiring is an economic necessity.” The article stated, “Rather than focusing on traditional credentials, companies are increasingly evaluating specific abilities and practical experience over academic qualifications or past job titles.” A McKinsey survey noted that 87% of companies face skill gaps, reinforcing this trend. Additionally, remote and distributed work models have accelerated the demand for skills such as independent work, digital literacy, and effective communication in hybrid teams.
The article further stressed that modern AI-powered talent management systems are transforming how organizations identify and develop skills within their workforce. These tools allow companies to adapt dynamically to market changes by focusing on precise tasks and the skills required to accomplish them.
After going through these articles and reflecting on my discussion with the researcher, I couldn’t help but wonder: What does the future hold for the numerous private universities in India, charging exorbitant fees for prestigious degrees? What about the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs)? The researcher remarked that there is already a noticeable “setback” in the demand for degree holders from India.
A strong “wake up call” for our education system as well as structure !
ReplyDelete