Why are skills the new currency?

The world of work is undergoing a quiet but powerful transformation. Increasingly, employers are shifting from degree-centric recruitment to skill-based hiring, a trend that is reshaping how school and college students must prepare for their futures. While academic qualifications continue to matter, companies today are placing greater emphasis on practical skills, problem-solving abilities, adaptability, and real-world competence.

Skill-based hiring focuses on what a candidate can do rather than solely on where they studied or what percentage they scored. With the rapid evolution of technology, automation, and global connectivity, industries are looking for individuals who can think critically, communicate effectively, collaborate in teams, and adapt to change. From digital literacy and data analysis to creativity and emotional intelligence, skills are becoming the true currency of employability.

“For school students, this shift underscores the importance of holistic development. Participation in debates, coding clubs, internships, sports, performing arts, and community projects is no longer ‘extra’; it is essential. Such experiences nurture leadership, resilience, teamwork, and decision-making abilities. They also help students discover their interests early, allowing them to make informed career choices,” shares Navita Jha, an alumna from Apeejay School of Management.

College students, meanwhile, must complement academic learning with certifications, hands-on projects, freelancing experiences, and internships. “Employers increasingly value portfolios, practical demonstrations, and problem-solving case studies over theoretical knowledge alone. A student pursuing engineering, for instance, stands out not merely through grades but through coding projects, hackathon participation, or start-up experience. Similarly, a commerce student gains an edge with financial modelling skills or data analytics expertise,” she added.

From a career perspective, skill-based hiring opens doors beyond traditional pathways. It levels the playing field by rewarding competence and initiative. Students from diverse educational backgrounds can compete effectively if they possess relevant, demonstrable skills. It also encourages continuous learning, an essential trait in a world where industries evolve rapidly.