OPINION | The growing importance of skills in shaping employability

Around 60% of employers believe that skills-based hiring will lead many candidates to invest in certifications, specialized training, and hands-on learning

“I hear and I forget, I see and I remember, I do and I understand — Confucius.”

In today’s rapidly shifting world of work, this ancient wisdom finds striking relevance. The act of doing, of applying knowledge in real-world scenarios, has emerged as the most reliable indicator of understanding and capability.

In Indian offices, factories, and startups of the new generation, a revolution is quietly unfolding: employers are beginning to prioritize practical skills over paper qualifications.

Consider the tech industry: as highlighted by the World Economic Forum, 70% of Indian employers now place a greater emphasis on technical proficiency than on academic qualifications, reflecting a clear shift towards a skills-based hiring model.

A Changing Landscape

For generations, school credentials have been the primary gateway to the workplace. But as businesses evolve and adopt new technologies, there is a growing realization that skills—such as coding, data analysis, digital marketing, and technical support—represent the key to success in the contemporary workplace.

Current anecdotes suggest that most employers nowadays are more likely to be accommodating in the recruitment process and search for prospects with actual abilities, irrespective of what they are educated or trained in. This is an encouraging movement in favour of capability overqualification.

A study released by ADP, the human capital management solution's global industry leader, 90% of the employers have expressed that when they follow a skill-based process, they end up making fewer bad hires. Even more significantly, 94% maintain that candidates who are employed because of their ability perform better than those selected based on degrees or experience. This reflects an emerging awareness: in today's fast-changing work environment, what one can do is frequently more valuable than how long they went to school or the years of experience.

New Opportunities Through Skill-Based Learning

This revolution is creating avenues for many individuals who may not be in a position to pursue conventional higher education. Online certification, bootcamps, vocational training, and short courses provide alternative routes to employment. In areas such as IT, logistics, healthcare, and fintech, candidates who have completed specialized courses are landing actual job positions, often in less time than those pursuing conventional degrees.

The Economic Times notes that 72% of Indian companies are actively seeking skilled workers in domains like AI, cybersecurity, and cloud computing—fields where specialized certifications often outweigh traditional degrees.

This also holds true in healthcare, fintech, logistics, and manufacturing, where short-term skill-based programs can make candidates job-ready faster than conventional three or four-year degrees.

The Broader Context

The nation's own national programs, the National Education Policy (NEP 2020) and Skill India Mission , recognize the importance of reviving skill and vocational training. Integrating work skills in school education, enabling industry-academic collaborations, and enhancing access to digital learning environments are some of the steps that seek to link education to employment.

A Forward-Looking Approach

As India progresses to become a global economic powerhouse, the spotlight will be on skill development. Institutions, businesses, and policymakers can work together to create ecosystems in which skills complement degrees, offering young people multiple pathways to build successful careers. Additionally, around 60% of employers believe that skills-based hiring will lead many candidates to invest in certifications, specialized training, and hands-on learning.

Finally, the future will be in the hands of those who are hungry to learn, curious, and committed to continuous learning. In an ever-changing world, skills are not tools for laboring—they are building blocks for innovation, development, and national progress.

Degrees will remain relevant. But in a future based on vertiginous levels of technological and economic change, acquiring new skills and putting them into practice will assume a defining role in shaping careers—and the future of the Indian economy.

(Charu Kapoor is a Country Director, NIIT Foundation.)

Views are personal and do not represent the stand of this publication.