Skills Now outweigh Degrees for majority of Employers, New Report Reveals
Düsseldorf, Germany – October 21, 2025 CET/CEST – A meaningful shift is underway in the job market, with three out of four employers now prioritizing candidates’ skills over conventional academic qualifications, according to a new study released today by The Stepstone group. The ”Hiring Trends Update” reveals a growing recognition of untapped potential within the workforce and a pressing need to address the ongoing skills shortage.
The report, based on a survey of 1,067 recruiters and 6,857 employees in Germany conducted between September 10-22, 2025, highlights a disconnect between employee skills and job requirements. A ample 68% of employees report their tasks don’t fully utilize their abilities or strengths, contributing to widespread job dissatisfaction – with nearly seven in ten (68%) contemplating a job change several times a month.
“The skills shortage is not just a recruitment challenge but also a result of untapped potential in the labor market,” the report states.
This realization is driving a change in hiring practices. 77% of companies surveyed plan to place greater emphasis on demonstrable skills during the selection process, and 76% intend to more deliberately assess crucial soft skills like communication, teamwork, and problem-solving. The increasing influence of artificial intelligence is also fueling demand for digital and technological capabilities.
The trend is most pronounced in the IT sector, where 38% of recruiters have already abandoned formal qualification requirements for certain positions. While adoption is slower in other sectors – 10% in construction and 11% in education – the overall direction is clear.
“The move toward skills-based hiring is not a passing trend but an economic necessity,” says Probst, as quoted in the report. “in the future, skills will play an even greater role in determining whether companies stay innovative and whether employees can build long-term success.”
The Stepstone Group, a leading global digital recruitment platform connecting approximately 140 million job applications with over 130,000 employers annually, generated over €900 million in revenue in 2024. The company operates in more than 30 countries, including Germany (Stepstone), the USA (Appcast), and the UK (Totaljobs), and employs around 3,000 peopel worldwide.
For more details, visit www.thestepstonegroup.com/english.
Contact:
The Stepstone Group Press
press@stepstone.com
