Why nearly half of UK managers don’t have a degree – and why it matters

The job market is undergoing a significant transformation, with traditional hiring methods giving way to skills-based recruitment. A recent statistic reveals that 47.4% of managers, directors, and senior officials in the UK do not have a degree—highlighting that career success is not always tied to formal education.

While degrees remain essential for professions like medicine, law, and engineering, many industries are shifting towards prioritising experience, adaptability, and practical skills over formal qualifications. Employers are increasingly looking at what candidates can do rather than where they studied, leading to the rise of skills-based hiring.

This shift has been driven by multiple factors, including advancements in technology and artificial intelligence (AI), which demand continuous learning and adaptability. Additionally, diversity and inclusion efforts have prompted businesses to rethink hiring strategies, ensuring candidates from varied backgrounds have equal opportunities regardless of their academic credentials.

To explore this trend further, Liz Jones, UK Managing Director at people2people, sat down with Hannah Slee, Recruitment Manager, to discuss how the job market is evolving and what both job seekers and employers need to know about skills-based hiring.

"Companies need employees who are adaptable and can learn on the go."

With companies reevaluating hiring practices, skills-based recruitment is gaining traction as an alternative to the traditional degree-first approach. According to Slee, this transformation is reshaping how businesses assess talent.

"Traditionally, companies prioritised degrees and formal credentials when hiring, assuming a qualification proved someone’s ability to do the role. But now, we’re seeing a major shift where companies are focusing on what candidates can actually do rather than just what's on their CV," she explained.

One of the key reasons behind this shift is the changing job market and the impact of AI and technology. Employers are looking for candidates who can adapt quickly, learn on the go, and demonstrate problem-solving abilities, which aren’t always taught in university settings.

"Companies need employees who are adaptable and can learn on the go. Those skills aren’t always taught at university, and that’s why we’re seeing this big shift in how companies approach hiring," Slee added.

This evolving landscape means that job seekers without traditional degrees now have more opportunities to showcase their abilities and gain access to roles that were previously out of reach.

While degrees were once seen as a clear indicator of competency, many organisations now acknowledge that they can be a barrier to diversity and inclusion. Slee highlighted how the high cost of university education limits access for individuals from lower-income backgrounds, reinforcing social inequalities.

"University is a big financial commitment—not just tuition fees but also the cost of living, rent, and daily expenses. Not everyone has the same starting point, and relying solely on credentials can limit opportunities for people from diverse backgrounds," she explained.

Employers are realising that by focusing solely on degrees, they might be overlooking talented candidates who have gained valuable experience through alternative pathways such as apprenticeships, self-learning, or on-the-job training.

Furthermore, as industries evolve rapidly, formal education cannot always keep up with emerging skills demands. Businesses now prioritise candidates with real-world experience, problem-solving abilities, and the ability to learn new technologies quickly.

With more companies valuing skills over degrees, job seekers need to demonstrate their capabilities in a tangible way. Slee shared key strategies for candidates looking to thrive in this new hiring landscape.

"Focus on demonstrating your skills first. That could be through a strong portfolio, relevant work experience, or even side projects that showcase your capabilities," she advised.

Additionally, many businesses adopting skills-based hiring move away from traditional interviews in favour of practical assessments. Candidates should be prepared to showcase their abilities through skills tests, case studies, or task-based interviews rather than relying solely on their CV.

"If you’re applying to a company that values skills over credentials, be prepared for assessments or practical tasks instead of just a standard interview," Slee added.

Job seekers should also tailor their applications to highlight relevant experience, certifications, and skills—particularly those gained outside formal education.

As the skills vs. degrees debate continues, it’s clear that skills-based hiring is here to stay. With nearly half of UK managers not holding a degree, businesses are realising that success isn’t always determined by formal education.

For job seekers, this shift means new opportunities to enter industries without a university qualification, provided they can demonstrate their skills effectively. Employers, on the other hand, must rethink hiring strategies to ensure they are tapping into the best talent—regardless of academic background.

The job market is evolving, and those who adapt, upskill, and embrace alternative pathways will be best positioned for success. Could skills-based hiring become the new normal? The evidence suggests it already is.

How can employers implement skills-based hiring?
For companies looking to incorporate skills-based recruitment, making the shift requires adapting hiring processes. Slee outlined practical steps businesses can take:

Introduce case studies and skills assessments
Rather than focusing on degrees, employers should evaluate candidates based on real-world problem-solving abilities through case studies, skills tests, and work samples.

Move away from rigid CV screening
Companies should consider alternative ways to assess talent, such as looking at work experience, self-taught skills, and non-traditional education paths.

Structure interviews around practical abilities
Instead of solely relying on traditional question-based interviews, businesses should incorporate task-based interviews where candidates demonstrate their skills in real time.

Expand hiring pools for greater diversity
By removing degree requirements from job descriptions, companies can attract a broader and more diverse talent pool, leading to better hiring outcomes.