Are degrees still enough in today’s hiring market?

The hiring market is changing, and with it, the way employers define potential. For years, a university degree was seen as one of the clearest markers of capability, commitment, and future success. But as businesses move faster and technology reshapes the skills needed across many roles, that thinking is starting to shift. More employers are now asking a different question: can this person do the job, adapt quickly, and add value from the outset?

This change reflects a wider move towards practical capability over traditional credentials alone. In many sectors, formal education still matters, but it is no longer the only signal that counts. Employers are placing more emphasis on problem-solving, digital fluency, communication, and the ability to keep learning in a fast-changing environment. For candidates, that means proving value in more practical and immediate ways.

“Today, 64% of HR professionals recognise that while a degree shows commitment, it doesn't guarantee the digital fluency or AI capability required to drive immediate business results.”

On a recent New Zealand Market Update, Host NZ Team Leader Kirsty Henegan was joined by Guest Justine Storey of Orange Fox Consulting to explore how hiring expectations are evolving and why skills-first thinking is gaining momentum. Their discussion reflected a market where employers are becoming more deliberate about what job readiness really looks like, especially as AI continues to reshape the nature of entry-level and mid-level work.

A key theme is the rise of what many are calling new collar hiring. Rather than treating a degree as the main filter, employers are increasingly considering practical skills, microcredentials, project work, and clear evidence of applied thinking. That does not mean standards are being lowered. In many cases, employers are becoming more selective, but in a more targeted way. They still want strong performers, but they are broadening how they identify them.

AI is also accelerating this shift. As more routine tasks become automated, the value of human contribution is moving further towards judgement, creativity, communication, and adaptability. That changes the expectations around junior talent. Candidates can no longer rely on academic qualifications alone to stand out. They need to show they can solve problems, think commercially, and operate confidently in environments shaped by constant change.

For employers, this creates an opportunity to rethink outdated hiring filters. When businesses move beyond rigid academic requirements, they often uncover talent that may have been overlooked through more traditional screening methods. People can build highly relevant skills through work experience, short-form study, internal mobility, or self-directed learning. In a competitive labour market, this wider lens can make a real difference.

At the same time, this shift is not about dismissing education altogether. There are many roles where formal qualifications remain essential, particularly in highly regulated or specialist environments. But across a broad range of professional roles, a degree is increasingly becoming one part of a bigger picture rather than the deciding factor on its own. Employers are looking more closely at capability, mindset, and how quickly someone can contribute in real terms.



What stands out most is the growing importance of time-to-value. Employers want people who can make an impact early, while candidates need to present a clearer story around what they can do, how they think, and how they continue to grow. In a market shaped by evolving technology and rising expectations, the strongest signal of future success may no longer be where someone studied, but what they are able to deliver.

What should employers and candidates focus on as hiring becomes more skills-led?

• Put greater emphasis on practical capability, not just qualifications
• Use real-world assessments to test problem-solving and communication
• Recognise microcredentials and applied learning as part of a candidate’s value
• Review entry-level roles in light of how AI is changing day-to-day work
• Build hiring processes around adaptability, execution, and learning agility
• Encourage candidates to show outcomes, initiative, and continuous development