2 in 5 Hiring Managers Say Gen Z Should Prioritize Gaining Experience Over a Degree

ResumeTemplates surveyed 1,000 hiring managers in May to understand how valuable college degrees are in today’s job market and whether companies have recently eliminated or plan to eliminate degree requirements.

Study highlights:

• 1 in 4 companies will stop requiring a bachelor’s degree for some roles by the end of this year
• 84% of companies that have recently removed degree requirements say the initiative has been successful
• Companies that have removed requirements have benefited from a more diverse applicant pool and the ability to offer lower salaries
• Hiring managers believe Gen Z should prioritize practical skills, such as AI skills and soft skills, over formal education

1 in 4 Companies Will Eliminate Bachelor’s Degree Requirements By The End of This Year

Seven in ten (69%) hiring managers say their company prioritizes relevant experience over a bachelor’s degree when making hiring decisions.

In 2024, 21% of companies removed bachelor’s degree requirements for at least some roles. Additionally one in four companies have already or plan to eliminate degree requirements by the end of 2025.

Among companies that eliminated degree requirements in 2024 or 2025, two-thirds did so for entry-level roles, 54% for mid-level positions, and 23% for senior-level jobs.

While 54% of hiring managers say “a lot” of roles at their company still require a bachelor’s degree, 34% say only some do, 10% say just a few require one, and 1% say none do.

Half of Companies That Removed Requirements Say It Led To A More Diverse Applicant Pool

The primary motivation for eliminating bachelor’s degree requirements is a desire to focus on skills over credentials (77%). Nearly half of companies say they made the change to build a more diverse workforce (48%) or to increase the number of applicants (46%). About one-third (32%) say they aren’t finding suitable candidates even among those with degrees, and 25% believe AI tools now help employees succeed without traditional qualifications.

Overall, 84% of hiring managers say removing degree requirements is successful for their company.

When asked how the change helps, 83% say it’s led to a surge in applications, 54% say it’s resulted in a more diverse workforce, and 28% say it’s allowed them to offer lower salaries.

“Over the last five years, we’ve seen large organizations drop degree requirements in favor of certifications or experience, and now others are following suit,” says ResumeTemplates’ Chief Career Strategist Julia Toothacre. “For employers, it expands the talent pool and generates positive PR. For candidates, it opens doors for those who can’t afford a degree or choose a different path. These jobs have the potential to lift people out of poverty.”

Hiring Managers Prefer Gen Z Candidates With AI and Soft Skills Over Degrees

Many hiring managers believe Gen Z should prioritize practical skills over formal education. Forty-two percent say Gen Z workers should focus on gaining work experience rather than earning a bachelor’s degree, while 28% disagree and 30% remain neutral.

Hiring managers also value soft skills and cultural fit more than formal education. When choosing between a Gen Z candidate with strong soft skills but no degree and one with a degree but weak soft skills, 53% prefer the candidate without a degree. Just 24% choose the degree-holder, and 23% say both are equally strong. When asked to choose between a Gen X candidate without a degree who fits the company culture and one with a degree who doesn’t, 79% choose the candidate who fits the culture. Only 11% prefer the degree-holder, and 10% say both are equally strong.

AI skills are more valued in Gen Z candidates than in Gen X. Thirty-five percent of hiring managers say Gen Z workers should prioritize gaining AI skills over earning a degree, while 28% disagree and 27% are neutral. But when presented with a Gen X candidate who has AI experience but no degree versus one with a degree but no AI experience, 51% choose the degree-holder, and only 28% select the AI-skilled candidate. Twenty-one percent say both are about the same.

“For early-career professionals like Gen Z, it’s much easier to train for practical, role-specific skills than it is to teach soft skills. If someone already has strong interpersonal and communication skills, the rest can be taught over time. Gen Xers, often in leadership roles, need a deeper understanding of company culture because they’re expected to model it. While AI is today’s hot skill, it’s still just that, a skill. Culture fit, on the other hand, is much harder to teach and even harder to find,” says Toothacre.

Methodology: This survey was conducted in May 2024 via the survey platform Pollfish. In total, 1,000 U.S. hiring managers were surveyed. To take the survey, respondents had to answer that they are involved with hiring at their workplace. Respondents also had to meet certain demographic characteristics, including age (25 and up), household income ($75,000 or more), organizational role (manager-level), company size (11 or more), and completed education level (bachelor’s degree or above).