Skills over degrees
The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more.
There's a seismic shift reshaping the labor market, with tremors across government and business. The latest signal of this transformation is the announcement of the Skills-First Workforce Initiative, a collaboration of top employers aimed at making the skills needed for jobs more transparent.
It follows an announcement from California Governor Gavin Newsom, who on April 2nd unveiled his Master Plan for Career Education, furthering California's efforts on skills-based education and hiring.
That means candidates are encouraged to apply for roles based on their skills and previous experience, rather than what can be an arbitrary marker of capability: the college degree.
The Skills-First Workforce Initiative and Newsom's plan build on the momentum of many other states, like Colorado and Arkansas, and the federal government's Chance to Compete Act, which makes skill-based hiring a requirement for federal agencies.
All together, these initiatives and announcements send a clear message: The future of work has arrived.
It's a future that requires a new strategic imperative for workers and organizational leaders—the need for continuous upskilling.
Skills are the new currency
A growing number of companies and other state governments are already reaping the benefits of skills-based hiring by focusing on talent and potential rather than formal education. These leaders understand the potential of skills-based hiring to diversify the talent pool, foster innovation, and prepare organizations for the complexities of the future.
According to the National Governors Association's recent findings, over half of U.S. state governments have policies that encourage skill-based hiring, and states that adopted these policies have seen faster growth in job postings that don't have degree requirements.
With more organizations adopting skills-based hiring approaches, and even leveraging skill assessments to promote internally, skills are becoming the currency of the modern workforce.
Adapting to this new era of skills requires an essential mindset and strategy shift for employees and organizations. Employees need to embrace a mindset of continuous upskilling, while organizations need to give their employees the time and resources to sharpen those new skills.
For those at the cutting edge, this means starting the journey to becoming a skills-based organization.
Become a skills-based organization
A skills-based organization prioritizes the skills and capabilities of candidates and employees over their formal educational background. According to our research at Udemy, over 80% of employees report that their companies are beginning to consider implementing skills-based approaches (such as skills-based hiring), and 75% of organizations have already made changes to support this transition.
The key steps to becoming a skills-based organization extend beyond hiring practices.
To become skills-based organizations, companies need to create structured skill taxonomies. These are frameworks that identify and categorize the skills necessary for various roles within the organization. At Udemy, we are developing a skills taxonomy to map the competencies essential for different career paths, enabling targeted learning and development.
Focusing on skills instead of traditional credentials like degrees or job titles has been proven to cultivate a workforce that is both more agile and diverse. According to Deloitte, nearly two-thirds of companies implementing skills-based strategies experience enhanced outcomes compared to those that don't. Such organizations benefit from greater workforce flexibility, facilitating quick and adaptive reactions to unexpected market shifts. When skills development and acquisition are prioritized, employees become versatile, readily transitioning to new tasks or roles as needs arise, without being limited by predefined job titles or descriptions. This agility enables organizations to swiftly address emerging challenges by strategically reallocating talent where it's most needed.
AI supercharges the change
These shifts—transitioning to a skills-based organization and adopting new mindsets—won't happen overnight. However, AI can significantly accelerate the process, and it is becoming even more critical as companies feel pressure to reskill their workforces. We are entering an era where AI integrates into every facet of learning, simplifying, and accelerating skill acquisition.
One way that AI can transform workplace training is by enabling adaptive learning systems that customize educational content based on learner progress. This personalized approach can enhance learning efficiency and engagement, allowing learners to access the knowledge they need more effectively. AI-enabled learning systems have the power to bridge gaps between current employee knowledge and needed skills, making them a dominant force in the future of education.
Our role as leaders
The movement towards a skills-based economy is not just a fleeting moment. It's the dawn of a new era in workforce development. Announcements like Newsom's signal a move toward a more equitable and efficient labor market.
As leaders, we must champion these changes within our organizations, ensuring that we create an environment where continuous learning and skills development take center stage.
By prioritizing skills over degrees, we're opening doors to a broader range of individuals, enriching our organizations with diverse perspectives and experiences. Together, we can build a more inclusive and dynamic workforce equipped for the challenges and opportunities that lie ahead.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
31 minutes ago
- Yahoo
Circle stock extends rally for third day in a row as stablecoin momentum grows
Circle stock (CRCL) rallied for a third day in a row on Monday as investor enthusiasm over stablecoins continued to surge. Shares jumped as much as 20% before paring gains, building on an 80% rally last week after the Senate passed legislation that provides a federal framework for stablecoins, which are digital tokens backed by assets such as the US dollar. Wall Street strategists also pointed to deal-making in the digital asset space as another tailwind for the issuer of USDC stablecoins (USDC-USD). On Monday, fintech firm Fiserv (FI) announced plans to launch a digital asset platform, including a new stablecoin (FIUSD) by the end of this year using existing infrastructure from issuers Paxos and Circle. "For CRCL, we like seeing its inclusion as a leading partner of FI as FI develops its own stablecoin - this is a nice 'win' for CRCL which highlights the company's ongoing rise," Seaport Research Partners analyst Jeff Cantwell wrote in a note on Monday. Last week, Cantwell initiated Circle with a Buy rating and a price target of $235. Shares are up more than 800% from their IPO price of $31 on June 5. "We view Circle as a top-tier crypto 'disruptor' with a sizeable future opportunity," Cantwell wrote last Friday, noting that the company will benefit from an improving regulatory climate in the US. The stock surged last Wednesday following the Senate's passage of the GENIUS Act, legislation which Wall Street expects to be passed by the House and signed by the President this year. "Circle's success isn't just about one company doing well," said Anthony Georgiades, founder of Innovating Capital, a firm focused on early-stage investments across crypto, AI, and deep tech. "It's a clear validation of stablecoins as a core piece of the digital asset ecosystem and shows that crypto is gaining legitimacy with the broader financial world," he added. Read more about Circle's stock moves and today's market action. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio
Yahoo
31 minutes ago
- Yahoo
Snowcap Compute Launches with $23 Million Led by Playground Global to Power the Next Era of AI and Quantum Compute
Superconducting startup aims to expand the limits of silicon PALO ALTO, Calif., June 23, 2025--(BUSINESS WIRE)--Snowcap Compute, a startup building the first commercially viable superconducting compute platform, today launched with $23 million in seed funding led by Playground Global. Engineered for extreme performance and energy efficiency, Snowcap's architecture enables a new class of data centers optimized for AI, quantum, and high-performance computing (HPC). The platform delivers the performance and efficiency needed to power advanced AI inference and training, as well as HPC and quantum-classical hybrid workloads. "We're building compute systems for the edge of what's physically possible," said Michael Lafferty, CEO, Snowcap. "Superconducting logic lets us push beyond the limits of existing CMOS technology, achieving orders-of-magnitude gains in processing speed and efficiency. That performance is essential for the future of AI and quantum computing." Snowcap is led by an exceptional team of silicon industry veterans with extensive scientific, technical and operational experience. In addition to Lafferty, whose tenure as director of Cadence's "More than Moore" engineering group focused on pioneering superconducting and quantum technologies, the founding team includes Chief Science Officer Anna Herr, Ph.D., and Chief Technology Officer Quentin Herr, Ph.D., who are globally recognized as the foremost researchers in practical superconducting computers with key roles at Northrop Grumman and imec. Joining Mike, Anna, and Quentin is a roster of deep tech Silicon Valley veterans, including advisors Brian Kelleher, former SVP of GPU engineering at NVIDIA, and Phil Carmack, former VP of silicon engineering at Google. "Snowcap represents a rare opportunity to realize dramatic performance and power efficiency gains," said Pat Gelsinger, General Partner at Playground Global and Chair of the Board at Snowcap. "Reimagining a post-CMOS world from the ground up with the most capable and experienced team in superconducting technology is exactly the kind of breakthrough that Playground was built to enable. The implications for AI, quantum and HPC are both thrilling and profound." Built on decades of research and development, Snowcap's platform is engineered to support next-generation quantum and low-temperature compute systems, enabling exceptional speed, efficiency and low latency. Snowcap has also solved the key engineering challenges that have prevented superconducting technology from reaching broad commercialization in the past, including scaling, fab compatibility, EDA challenges, and system architecture issues. Joining Playground in this seed round are Cambium Capital, which specializes in compute and deep tech investments, and Vsquared Ventures, a European firm with a strong track record in international semiconductor investing. About Snowcap Snowcap is building the first commercially viable superconducting compute platform — designed to deliver dramatic gains in speed and energy efficiency for AI, quantum, and high-performance computing. Founded by a team of experts in superconducting logic, digital architectures, and systems engineering, Snowcap is rethinking classical compute for the age of cryo and quantum infrastructure. Learn more at About Playground Global Playground Global is a deep tech venture capital firm with $1.2 billion under management, backing early-stage startups solving foundational challenges in next-generation compute, automation, energy transition, and engineered biology. Founded in 2015 and based in Palo Alto, Playground partners closely with technical and scientific founders to turn breakthrough ideas into lasting companies. Portfolio highlights include PsiQuantum, MosaicML (acquired by Databricks), d-Matrix, Agility Robotics, Ideon, Ultima Genomics, and Strand Therapeutics. Learn more at View source version on Contacts Steve Smithssmith@
Forbes
33 minutes ago
- Forbes
American Manufacturing Revival & The Skills Gap
Addressing the skills gap A few weeks ago, I had the honor of welcoming supply chain and manufacturing leaders to the inaugural U.S. Manufacturing and Revitalization Summit. This gathering underscored a pivotal moment in American industry—a manufacturing resurgence fueled by strategic investments and reshoring efforts. While this is certainly driven by legislation like the CHIPS and Science Act and the Inflation Reduction Act, tariffs are clearly having an impact here. According to the 10th Annual State of Manufacturing and Supply Chain Report, the vast majority of manufacturing and supply chain leaders consider onshoring critical to their overall supply chain strategy. Onshoring strategy Prior to the new U.S. Administration, the same leaders were incresaingly concerned about global trade tensions and tariffs. Growing global business uncertainty Investments in U.S. Manufacturing Despite these concerns, recent years have seen a dramatic uptick in U.S. manufacturing activity. According to the National Association of Manufacturers (NAM), investment in construction for manufacturing projects hit record highs in 2023, especially in sectors like semiconductors, clean energy, and electric vehicles. Major brands like GM, Intel, Samsung, Honda, and Ford are constructing or expanding domestic manufacturing plants. Apple is reconfiguring supply chains to rely less on China. Kraft Heinz recently announced a $3 billion investment in U.S.-based manufacturing—their largest in decades. These moves signal that U.S. manufacturing isn't just reviving; it's repositioning for long-term strategic growth. But what's especially striking is how this growth reflects a broader shift in the global economy. Companies are no longer simply chasing low costs abroad—they're looking for stability, reliability, and resilience. This has made manufacturing a national priority once again and brought renewed focus to one of the sector's most stubborn challenges: labor shortages. Despite the surge in manufacturing investments, the industry faces a daunting talent shortage. A study by Deloitte and The Manufacturing Institute projects that 2.1 million manufacturing jobs could go unfilled by 2030 due to a lack of skilled labor. This gap is not merely a numbers issue; it's about the evolving nature of manufacturing roles. Modern manufacturing demands proficiency in areas like CNC machining, robotics, and automation. However, outdated perceptions persist, painting manufacturing as low-tech and low-paying. This misalignment deters younger generations from pursuing careers in the sector, exacerbating the talent shortage. Formula Electric Berkeley Team To bridge the skills gap, it's imperative to reshape the narrative around manufacturing. Today's manufacturing environments are clean, technologically advanced, and offer lucrative career paths without necessarily requiring a four-year degree. Partnerships between industry and educational institutions play a crucial role in this transformation. Programs like Formula Electric at Berkeley exemplify this synergy. With support from companies like Fictiv, engineering students design and build electric vehicles, gaining hands-on experience in advanced manufacturing. These initiatives not only equip students with practical skills but also showcase the innovative nature of modern manufacturing. Green manufacturing and cleantech clearly resonate with the next generation's focus on meaningful work and environmental impact (90% of Gen Z and Millennials believe it's essential that their work reflects these values). The rise of automation and AI in manufacturing is often viewed with apprehension. However, automation should be seen as a tool that complements human labor rather than replacing it. By automating repetitive tasks, workers can focus on more complex, value-added activities. AI is already integrated into central manufacturing tasks, including inventory management, quality control, and product design. AI advances Moreover, the integration of AI and automation creates new roles, such as robotics technicians and systems analysts, requiring a blend of technical and digital skills. Investing in training programs to develop these competencies is essential to ensure that the workforce evolves alongside technological advancements. Global Lessons: Building a Resilient Workforce Looking globally, countries like Germany and India have successfully implemented apprenticeship and vocational training programs aligned with industry needs. These models offer valuable insights for the U.S. in developing a robust manufacturing workforce. In the U.S., companies like Siemens are pioneering inclusive workforce development strategies. At their Fort Worth facility, Siemens has created hundreds of jobs, focusing on training individuals without prior factory experience through innovative programs led by former educators. Such approaches highlight the potential of comprehensive training programs in addressing the skills gap. Supply Chain Strength Through Regional Flexibility One often-overlooked aspect of the labor story is geography. The U.S. manufacturing resurgence isn't happening in just one location—it's unfolding across a distributed network of regional hubs. This regional diversification plays a critical role in helping companies manage labor shortages. By operating across multiple locations (like China, Mexico, and India), manufacturers can better align talent strategies with regional strengths. Some regions might be ideal for high-mix, low-volume prototyping, while others excel in large-scale production or access to specific skill sets. The Path Forward: A Collaborative Effort Addressing the manufacturing skills gap requires a concerted effort from industry, education, and government. Key strategies include: Modernizing education. Integrate advanced manufacturing topics into curricula and promote STEM education to prepare students for modern manufacturing roles. Public-private partnerships. Foster collaborations between companies and educational institutions to provide hands-on training and real-world experience. Reskilling and upskilling. Implement programs to continuously develop the skills of the existing workforce and adapt to technological perceptions. Launch campaigns to redefine manufacturing careers, highlighting innovation, technology, and sustainability. Conclusion: Seizing the Opportunity The resurgence of American manufacturing presents a unique opportunity to redefine the industry and its workforce. By addressing the skills gap through education, partnerships, and a shift in perception, we can build a resilient, innovative, and inclusive manufacturing sector. The future of manufacturing lies not just in advanced machinery but in the people who operate, innovate, and drive the industry forward. It's time to invest in that future.
