Is the Job Market Shifting Towards Skill-First Hiring? "Homeschooling and self-paced learning are gaining momentum. However, while technical expertise is crucial, social skills, emotional intelligence, and real-world collaboration remain equally important," says Jayalekshmi M. Nair, Principal, Vivekanand Education Society's Institute of Technology

As campus hiring bounces back in FY25 with better salaries, increased budgets, and AI-driven talent strategies, a major shift is becoming clear that employers are prioritising practical skills over traditional degrees. Backed by Deloitte's Campus Workforce Trends 2025 report, the hiring landscape is leaning toward a skill-first approach, driven by the rapid adoption of AI and a growing focus on workplace readiness.

From engineering graduates mastering AI/ML to recruiters using GenAI for smarter screening, the ecosystem is evolving fast. Nearly 87 per cent of engineers are now upskilling in AI and data science to gain 15–20 per cent pay premiums, and GenAI use in recruitment is expected to surge by 38 per cent, making real-world competence more important than credentials alone.

The changing lens of recruiters

The shift is especially visible in how recruiters assess entry-level tech talent. For Sheetal Bhanot Shetty, CHRO at Infra.Market, hiring decisions are no longer binary between degrees and skills.

"We don't see this as an either/or. A formal degree certainly helps lay a strong academic foundation. However, practical skills, adaptability, and a growth mindset are equally important," she explains. "A self-taught developer with relevant project experience or a fresh graduate who's eager to collaborate and grow both have a place here."

Priya Chawla, India Head – Strategy & Growth, echoes the sentiment," Self-taught or not, what matters is proving through your work experience; projects, contribution and outcomes. A self-taught developer with a portfolio of work, projects and contributions typically grabs far more attention than a recent graduate with a degree that doesn't warrant credible application beyond theory."

Even educational institutions are acknowledging this evolution.

"Yes, India is firmly moving towards a skill-first hiring model, and that's a highly positive shift," says Jayalekshmi M. Nair, Principal of Vivekanand Education Society's Institute of Technology. "This trend is further strengthened by the rise of GenAI tools in hiring from AI-led assessments to project-based evaluations, enabling recruiters to identify talent based on real-world performance."

What skills matter most now?

With this growing preference for skills-first hiring, employers are revisiting what they value in fresh talent.

Shetty says, "We look for clarity in communication, a sense of ownership, and the ability to navigate ambiguity with confidence. What truly stands out is a mindset geared towards problem-solving, continuous learning, and collaboration."

For Chawla, curiosity and the ability to be trained matter more than textbook expertise."Yes, technical fundamentals are important in certain roles; however, being able to demonstrate curiosity, adaptability and a desire for continuous learning and growth is what will differentiate someone."

From the academic perspective, Nair highlights the growing focus on outcome-based learning,"Students must actively engage in hands-on learning, taking ownership of their lab work, projects, and internships. Developing soft skills like communication, teamwork, adaptability, and a digital-first mindset is equally important."

Sarath Raj, Senior Director and Head of HR BSE, APAC, UST, reinforces the need for a hybrid mix of skills,"UST prioritises a balanced mix of technical and soft skills when hiring fresh talent… proficiency in programming languages like Python, Java, JavaScript, and C++, plus SQL database knowledge is essential. Soft skills including adaptability, empathy, teamwork, communication, and active listening are equally important."

Are degrees losing relevance?

With the surge in alternative credentials, self-paced learning, and online certifications, the relevance of formal degrees is being debated. But are they truly fading?

Shetty feels, "Degrees still carry value, especially for the structure and foundational knowledge they provide. But in today's world, they're not the sole differentiator."

Meanwhile Chawla explains, "Degrees still hold value and will always be considered, particularly where roles require foundational knowledge… However, in many tech roles, the value comes from an ability to solve real problems in real time."

Nair takes a broader view, reflecting on how non-traditional learning is reshaping the academic narrative."Homeschooling and self-paced learning are gaining momentum… However, while technical expertise is crucial, social skills, emotional intelligence, and real-world collaboration remain equally important."

Raj points to India's booming AI job market which is expected to reach USD 17 billion by 2027, as an indicator of how fast the hiring priorities are shifting.

"Degrees are becoming less decisive but haven't lost relevance entirely… Success now depends on adaptability, practical skills, and staying current with emerging technologies qualities that transcend traditional academic boundaries."