Skills-based hiring was once framed as the future of recruitment, promising fairer access to jobs and better talent matches. Yet new workforce data suggests the shift is happening far more cautiously than expected. According to WGU’s Workforce Decoded Report, which surveyed more than 3,000 hiring leaders, only 46% of employers plan to expand skills-based hiring in 2026. For job seekers and employers alike, this raises an important question: Why the hesitation? The answer lies in verification challenges, technology gaps, and employers’ continued reliance on familiar hiring signals.

While skills matter more than ever, most organizations are moving carefully rather than fully committing to a skills-first model.

Skills-Based Hiring Faces a Verification Problem

One of the biggest roadblocks is credibility. The report found that 53% of employers struggle to verify what candidates actually know. Without consistent ways to assess skills, hiring teams fall back on degrees, job titles, and brand-name employers because they’re easier to validate. These credentials may be imperfect, but they reduce risk in high-volume hiring environments. Many companies simply don’t have standardized assessment tools or internal expertise to evaluate skills fairly across candidates. Until verification improves, skills-based hiring remains hard to scale.

As a result, skills often supplement traditional signals rather than replace them.

Why Degrees Still Matter to 68% of Employers

Despite years of debate about the declining value of degrees, 68% of employers still consider them important. Employers aren’t choosing between degrees and skills—they want both. The real issue isn’t the credential itself but confidence in outcomes. Only 37% of employers believe higher education fully prepares students for the workforce, creating a trust gap. That gap drives companies to seek additional proof of readiness through certificates, assessments, and experience. Degrees remain relevant, but no longer sufficient on their own.

This blended mindset explains why skills-based hiring hasn’t overtaken traditional screening.

Work Experience Still Outperforms Skills Signals

When it comes to predictability, experience wins. The report shows that 78% of employers rate work history as equal to or more valuable than a degree. Real-world experience demonstrates performance under pressure, collaboration, and problem-solving—qualities that résumés and interviews struggle to capture. Looking ahead, 43% of employers plan to increase emphasis on internships, apprenticeships, and hands-on experience. For many organizations, experience already functions as a proxy for skills.

That makes pure skills-based hiring feel unnecessary, or even risky, in the short term.

Technology Is Slowing Skills-Based Hiring Adoption

Hiring technology hasn’t caught up with hiring ambitions. Most applicant tracking systems still filter candidates by education, years of experience, and job titles—not skills. While 43% of employers plan to increase AI use in screening, upgrading systems requires major investment. Many cite costly or inadequate skills-testing platforms as a key barrier. Beyond software, skills assessments demand time, expertise, and coordination. At scale, that complexity becomes a bottleneck.

Without affordable, reliable tools, employers revert to familiar processes.

Employers Want AI Skills—But Can’t Measure Them Yet

AI skills are in high demand, but evaluation remains inconsistent. About 50% of employers assess AI ability through tool familiarity, certifications, or integration into daily work, yet standards vary widely. Some prioritize hands-on experience with tools like ChatGPT or Python, while others rely on certificates. Many employers admit they’re still figuring it out. As AI skills evolve rapidly, assessment frameworks lag behind.

This uncertainty pushes companies into a wait-and-see approach rather than full skills-based adoption.

A Portfolio Approach Is Replacing Skills-First Hiring

Rather than abandoning skills-based hiring, employers are blending it into a broader evaluation model. While only 46% plan to expand their focus, 86% view non-degree certificates as valuable, and many already assess skills informally. Hiring methods now include portfolio reviews, technical tests, behavioral interviews, and on-the-job evaluations. In this model, skills are one data point among many. Degrees, experience, and credentials still carry weight.

Skills-based hiring isn’t disappearing—it’s being absorbed into a more complex system.

What Slower Skills-Based Hiring Means for Job Seekers

For job seekers, the message is clear: versatility wins. Degrees still open doors, but certificates, experience, and demonstrated skills increasingly shape decisions. AI literacy and adaptability are becoming differentiators, especially as automation spreads. Human skills—communication, judgment, and collaboration—remain critical signals. Most importantly, change is gradual. Traditional credentials still matter, even as skills gain influence.

The future of hiring isn’t degrees versus skills. It’s about presenting a complete, credible picture of what you can do—and how you’ve done it.