Approaches to skills assessment Removing academic degree requirements and conducting skill-based hiring is an increasingly recognized approach to expanding talent availability.45 As shown in Figure 4.12, work experience continues to be the most common assessment mechanism in hiring processes, with 81% of businesses expecting to continue to rely on it over the 2025-2030 period. This is consistent with previous editions of the report, underlining the value employers place on practical, on-the-job learning and achievements. Only 4% of companies report that they do not assess the skills of prospective employees, highlighting that skills evaluation is almost universal across industries. The second most common method of evaluation is skills assessments, expected to be utilized by 48% of employers, highlighting a growing emphasis on directly testing candidates’ competencies rather than relying solely on their resumes. In addition, psychometric tests are planned to be used by 34% of businesses, reflecting an increased focus on evaluating candidates’ behavioural traits, cognitive abilities and cultural fit. The requirement of a university degree features in third place of employers’ approaches to skills assessment, with 43% of respondents expecting to continue to use degrees as a requirement by 2030. Comparison with the previous edition of this report shows that employers are increasingly focusing on work experience and psychometric testing over traditional credentials like university degrees. This shift signals a growing recognition that practical skills and cognitive abilities may be more indicative of future job performance than formal educational qualifications, in addition to expanding the talent pool. O*NET’s database of job experience requirements reveals that 14 of the 15 fastest- growing jobs over 2025 to 2030 primarily require a university degree, while only seven of the 15 largest-growing roles demand an advanced degree. This reliance on traditional credentials in rapidly Assessing the wage premium for skills through a gender lens reveals that men tend to have a higher wage premium across all zone transitions except one. Men, on average, experience a 44% wage premium between job zones, whereas women see a 30% premium (Figure B4.3). Gender disparities are most pronounced at specific transitions. While male workers receive a wage premium of 39% at the point of transition from jobs that require little preparation to jobs that require some preparation, the equivalent wage premium for female workers is only 19%. At the upper end of the job complexity spectrum, women only receive a 15% higher wage for working in specialized jobs that require extensive preparation compared to jobs that require considerable preparation. This contrasts sharply with a 44% higher median wage at this transition point for men. 0 0.6 0.4 0.2 0.8 1 1.2 1.4 1.6 male female Some preparation Medium preparation Considerable preparation Extensive preparationCumulative wage premium Source ADP ResearchMarginal wage premium: female vs. male workers FIGURE B4.3 Marginal wage premium (ratio to next-lowest job zone) for median of gross wages. Future of Jobs Report 2025 61