Skills Pay the Bills: How to Stay Competitive in a Skills-Based Job Market

Employers are increasingly applying a skills-based approach when it comes to hiring. In recent years, companies have been placing a greater value on job-specific skills in job postings rather than just educational attainment and degree completion—otherwise called the “death of the degree.” 

According to Competence over Credentials: The Rise of Skills-Based Hiring by the Boston Consulting Group, “A static college degree seems less relevant when rapid technological change requires employees to dynamically acquire new and evolving skills—to upskill and reskill, again and again.”

In Forbes' article on The Rise of Skills-Based Hiring, Opportunity@Work founder Byron Auguste said, “Instead of ‘screening out’ by pedigree, smart employers are increasingly ‘screening-in’ talent for performance and potential.” This approach of embracing skilled credentials over degrees opens the door to a wider, more diverse pool of candidates and gives learners or would-be applicants more educational opportunities to advance their career.

What are Skilled Credentials?

Skilled credentials allow you to demonstrate skills you’ve learned in a particular field or topic. They are acquired through various modes of education, including certificate programs, boot camps, MOOCs, workforce training, community college, internships or apprenticeships, and on-the-job training. These credentials are usually accompanied by certificates or badges, demonstrating to employers practical knowledge and skills earned.

Skilled credentials can be a valuable addition to your résumé. While you may already have a degree under your belt, skilled credentials can help you complete workplace requirements, get a promotion or make a career change. Depending on your career goals, a certificate can be a strong alternative to a master’s degree, or in some cases, provide a good jumping off point for pursuing an advanced degree down the road.

These types of credentials have been on the rise. According to Credential Engine, the number of unique credentials offered in the United States more than tripled from 334,114 in 2018 to more than 1 million in 2022. Skilled credentials give career changers, working professionals, those re-entering the workforce and others for whom a four-year degree is not feasible an opportunity to build their skill set or develop new skills through more affordable, flexible means.

Skilled Credentials By the Numbers

According to a recent Society for Human Resource Management (SHRM) report on Making Alternative Credentials Work:

• 72% of U.S. workers agree that alternative credentials are an affordable way to gain the skills or experience necessary to enter a new job.
• 77% agree that having a job-relevant alternative credential increases or would increase their chances of being hired for a job.
• 68% who currently hold an alternative credential believe earning it has helped them progress in their careers.
• A majority of all employer groups—88% of executives, 76% of supervisors and 78% of HR—view employees with alternative credentials more favorably when considering promotions or completing succession planning activities.

Earn Your Credentials at UC Davis CPE

It is very likely that you will have multiple careers throughout your lifetime, or, at the very least, be expected to continuously be upskilling and reskilling thanks to advances in technology and the onset of AI. As the lifelong learning division of UC Davis, CPE is here to help you gain immediate skills for employment now and well into the future. We offer a variety of learning opportunities that blend the distinctive academic expertise of UC Davis with practical training that immediately improves capability and job performance. You can conveniently learn new skills and obtain the credentials you need to advance your career or launch a new one. 

• Academic and Non-credit Professional Certificates: Choose from online and in-person certificates in more than 10 areas of study, many of which will help you achieve your industry-recognized certification
• Badge Programs: Earn skills badges, metaskill badges or a certificate badge in several fields including business and leadership, brewing and IT – and share your achievement from your LinkedIn profile!
• Self-paced Courses and Specializations on Coursera: Build new skills and determine your own learning schedule with UC Davis courses on this global online learning platform

Access Our Virtual Career Center to Amplify Your Skills-Based Learning

As a UC Davis CPE student, you have access to free career resources through our Virtual Career Center. This portal includes a wealth of resources to support your professional development and help grow your career. 

You can search a vast database of professions to get data on key skills and what you can expect to be paid. This tool also lets you compare two careers based on salary, skills, education requirements and more. Utilize the interactive résumé builder to ensure you’re including everything potential employers want to see and check out quick guides and workshops to further build your career skills. 

Editor’s Note: This article was originally published in October 2022 and has been updated for accuracy and comprehensiveness.