How Gen Z is redefining success with skills

India’s Generation Z is giving us a much-needed reality check on how we look at education and careers. Unlike its predecessors who considered a four-year college degree to be the gold standard, Gen Z is increasingly appreciating the value of hands-on skills, practical experiences, and continuous learning.

Raised in a digital-first world, this generation is questioning long-held assumptions about what it takes to build a rewarding career. As rising education costs, uneven graduation outcomes, and cutting-edge technologies disrupt traditional models, this generation isn’t shying away from making bold choices when it comes to their careers.

Here’s why Gen Z is placing far more value on skills over conventional academic routes:

The advent of skill-based hiring

Among the major factors influencing Gen Z’s preferences for skills is the growing trend of skill-first hiring. The World Economic Forum, in its Jobs Report 2025, states that almost 30% of employers in the country are looking to adopt skills-based hiring practices by eliminating degree requirements. This is well above the global average of 19%.

This transition is being fuelled by fast-changing technological needs and the need for workplace diversity. Roles such as AI and Machine Learning Specialists, Big Data Analysts, and Cybersecurity Experts demand up-to-date, demonstrable skills and not just academic credentials. As a result, employers are increasingly turning to alternative credentialing methods, such as micro-certifications, boot camps, and short courses to zero down on qualified candidates.

Economic strain and the cost of learning

The mounting costs of higher education have prompted numerous Gen Z individuals to rethink the value of conventional degrees. The All India Survey on Higher Education 2020-21 notes that the tuition fees for engineering courses in private institutions increased by more than 50% in the last decade. Education inflation, which had briefly dipped during Covid-19 in April 2021, has now surged back to 11-12%. Consequently, Gen Z is exploring alternative educational pathways that offer a more upfront route toward reaching employment without incurring significant debt. Online courses and industry-aligned certifications are now seen as cost-effective ways to attain job-ready skills.

Technological adeptness and the digital economy

Gen Z is the first generation to grow up fully online. Their digital nativity has successively led them to demonstrate a preference for online learning, which offers flexible and accessible avenues. Moreover, the swift proliferation of AI and automation has created a demand for tech-savvy professionals who are skilled at navigating digital tools and platforms. In response to this, Gen Z is laying more emphasis on skills in domains such as coding, data analysis, and digital marketing, as these are less reliant on traditional degrees and more centered on individual capabilities.

4. Changing work values and career expectations

Moving beyond financial aspects, Gen Z also places a high value on work-life balance, job satisfaction, and opportunities for personal growth. A 2025 Gen Z and Millennial Survey finds that Gen Z are more concentrated on work-life balance than ascending the corporate ladder, with just 6% opining their primary career objective is to reach a leadership position.

This does not mean that they lack ambition. It means that their ambitions are evolving. When asked about the strongest reasons for opting to work for their current employer, learning, and development are in the top three. This generational shift demonstrates a larger societal movement towards purpose-led work, where individuals seek roles that align with their values while offering learning opportunities.

The role of employers in supporting skill development

Forward-thinking companies are taking note of this generational shift. In order to attract Gen Z talent, employers are further adapting to their expectations by enabling them with prospects for skill development. Companies are gearing up to offer role-specific training, mentorship programs, and tuition reimbursement to support their existing workforce.

The rise of the gig economy and remote work culture has also expanded opportunities for individuals to apply their skills beyond traditional employment. Be it freelancing or building their own ventures, Gen Z professionals are finding every possible way to make their skills work for them.

Gen Z’s preference for skills over traditional degrees shouldn’t be seen as a rejection of the formal education system. It’s just a call for relevance, flexibility, and affordability in the face of the realities of modern times. This generational mindset will undoubtedly influence educational offerings and hiring trends.

The sooner employers and educational institutions recognize this shift, the better prepared they’ll be to attract and retain emerging talent. While institutions will be required to integrate hands-on learning, employers will have to go beyond legacy filters and focus on proven capabilities. The focus shall remain on serving a generation that learns differently and aspires boldly.