The tried-and-true playbook for climbing the corporate ladder is becoming obsolete. No longer does simply getting a degree guarantee career success; instead, employers are increasingly evaluating candidates based on demonstrable skills—and credentials that prove them.
And a new report from Western Governors University released today, shared first exclusively with Fortune, underscores that shift: 86% of employers now see nondegree certificates as valuable indicators of job readiness. According to the school’s president, Scott Pulsipher, technological innovation is making it essential for professionals of all ages to acquire in-demand skills, making lifelong learning increasingly the norm.
“The pace of change and the skills required to be highly productive in the world of work, it’s accelerating, meaning it’s just shortening the shelf life of the skills that we have,” Pulsipher told Fortune.
But degrees are far from irrelevant. The report found that 68% of employers still consider degrees important.
“Degrees actually still matter quite a bit, and what we’re seeing is that hiring decisions are increasingly relying on a portfolio of evidence,” Pulsipher said. In some instances, the combination of a work-relevant certification or degree with experience can double a candidate’s chances of getting hired—as compared to lacking a credential.
Sorting the signal from the noise when upskilling
Not all career professions value skill-demonstrating certifications equally. They’re highly sought-after in fields like technology, construction, and health care; in legal, hospitality, and marketing roles, they carry less weight.
But even in fields where credentials matter, finding the right ones can be overwhelming. Pulsipher noted that of the millions of credentials floating around the education and workforce landscape, “probably less than 1%” are truly industry-recognized and worth a candidate’s time.
For those in tech, he pointed to NICE certifications for cybersecurity and CompTIA credentials as reputable and widely accepted. WGU often incorporates these directly into its degree programs.
Pulsipher’s advice for finding the right pathway: Start with the job, not the credential. After researching the high-demand roles, identify the skills required and find learning pathways that end with industry-accepted credentials tied to those skills.
It’s also critical that no matter what, professionals ensure any upskilling is timely and relevant to their career goals. But above all, you can’t go wrong with improving your tech skills, no matter your field or role: “It just is impacting everything.”
The shifting hiring currencies across the workforce
Putting credentials aside, the report also found that 78% of employers said work experience is equal to or more valuable than a degree. Pulsipher said young professionals in particular often undervalue hands-on experience.
“It’s not about how you acquired what you can do—it’s what do you know and what can you do with what you know,” he said.
This approach is increasingly reflected among business leaders. At Palantir, for example, educational pedigree matters little once someone is hired. Working for the tech giant is becoming its own form of credential “separate from class or background,” according to CEO Alex Karp.
“If you did not go to school, or you went to a school that’s not that great, or you went to Harvard or Princeton or Yale, once you come to Palantir, you’re a Palantirian—no one cares about the other stuff,” he said during an earnings call earlier this year.
“This is by far the best credential in tech. If you come to Palantir, your career is set,” Karp added.
And it’s not just tech. Across industries, top employers aren’t “even talking about degrees” anymore, Great Place to Work CEO Michael Bush previously told Fortune. “They’re talking about skills.”