In today’s world, every single person wants a good job. However, there is always one question that changes the way we think about jobs. The question is whether a degree is enough or do we need skills to become employable. People used to think that having a degree would get them their desired jobs for so many years. Nonetheless, the times have changed and the companies want people who have good skills not just some certificates.
Now, think about what matters the most like a degree or skill. Yes, you guessed it right, skills matter the most. As we just discussed that the world is changing so are the companies. The companies now prefer employable employees. That means the companies nowadays prefer to hire skilled candidates instead of the ones with degrees but no skills.
According to a report published in The Economic Times, the employability rate of Indian graduates has improved to 54.81%, up from 51.25% the previous year. This indicates that while degrees are still valued, there’s a growing emphasis on skill development to meet job market demands.
In this article, we will talk about how the jobs are changing and what companies want.
The Traditional Importance of Degrees
Back in the time, when someone had a degree, it was considered that they could easily get a good job. A bachelor’s or master’s degree was a pretty big thing at that time. It basically showed that the person was ready to be employed. Also, the companies used to check the degrees first when choosing a candidate for a job.
The Shift Towards Skills
Today, the companies want workers who can solve problems, think fast, and adapt to new things. They also want people who can communicate well, work in teams and stay calm. These skills are basically known as life skills. Also, you cannot always learn these skills in your school or college. You learn them by doing things and from real life.
What Skills Do Companies Really Look For?
The World Economic Forum’s Future of Jobs Report 2025 lists analytical thinking, creative thinking, and resilience, flexibility, and agility among the top soft skills employers are seeking, reflecting a shift towards dynamic and adaptable skill sets. Let’s understand all the skills that the companies prefer in a candidate to have:
Effective Communication Skills
We need to talk and write clearly in every single job. We may talk to the customers, team members, manager etc. that’s why communicating in a clear way is very important. Thus, the companies prefer candidates who can share their ideas, listen and work well with others.
Leadership and Teamwork
When we talk about leadership it doesn’t always link to being a boss. Leadership is a good skill to have even if you are not the boss. It simply means that you are quick and ready to help others and take action because working in a team is equally important.
Problem-Solving and Critical Thinking
When we work a job so there could be some problems that can be solved by thinking smartly. Thus, companies always look for candidates who can think smart and solve problems. A degree is definitely beneficial as it shows that you have studied but only your skills help you to do the real work.
Being Flexible and Ready for Change
The companies want people who can learn things fast and adapt to the new things with the time. As everything changes fast now there are new rules, new apps and new ways to work. That’s why being flexible and ready for change is crucial to get the job of your dreams. However, you will still need a degree as they prove that you have studied well.
Emotional Intelligence (EI)
It simply means that you understand your feelings and other people’s feelings as well. It helps you to work peacefully and without fighting. The companies want people who can stay calm, work happily and handle the stress as well.
Research by Great Place to Work India emphasizes that emotional intelligence fosters empathy and understanding, enhancing relationships and conflict-resolution capabilities within organizations, leading to increased productivity and reduced turnover rates.
Degrees Are Still Important – But Not the Only Factor
You still need a degree for jobs like doctor, lawyer or engineer. That means degrees are still useful but some require soft skills more than a degree. Also, the companies want people who are ready to work. They usually prefer candidates who can use their knowledge to do the real tasks on the job. The Aspiring Minds National Employability Report reveals that over 80% of Indian engineers are unemployable due to a lack of new-age technological skills, highlighting that degrees alone may not suffice without relevant skill sets.
Conclusion
We have discussed above that the job market is changing fast. Thus, it is advisable to pursue the right skills rather than depending on a degree alone. You can definitely enhance your chances of securing the job that you want by focusing on continuous skill development.
So, the question we had was what do companies want the skills or degrees? Hence, as per our discussion, the final answer is that both are useful in their own different ways but skills are more important now.
Ramanjeet Kaur is a Life Skills and Behavioural Trainer. Her journey to becoming an entrepreneur and starting her career as a trainer in the education industry is an inspiring revelation. She was always passionate about teaching profession from her childhood and started mentoring young kids to develop their personalities.