AI can now draft a polished résumé, cover letter and interview answer in minutes. That’s made it harder for employers to tell who can actually do the job, so they’re looking for something harder to fake: evidence that someone can contribute and grow.
Western Governors University’s second annual “Workforce Decoded Report,” based on a national survey of more than 3,100 U.S. hiring professionals, found that 60% of employers say AI is making it harder to evaluate candidates’ real skills. However, employers aren’t abandoning credentials. They want more evidence of readiness.
In fact, 73% of employers consider college degrees important, up from 68% a year ago. At the same time, 91% view certificates as valuable indicators of skill, up from 86%, and 43% say they are increasing their focus on skills over degrees, according to the report.
Employers aren’t choosing between credentials and capability. They want proof of readiness, and they will use every credible signal to get it.
What Proof of Readiness Looks Like
When I read those numbers, I think of Belen Martinez.
Based in Lubbock, Texas, Belen, 37, has worked at McDonald’s for more than two decades and has helped grow her franchise from five to twelve restaurants. When expansion created new leadership opportunities, she earned a business leadership certificate from WGU and is now pursuing her bachelor’s degree in human resources management.
Today, Belen leads more than 200 managers and has become an advocate for continuing education among her peers.
“After learning those business leadership skills, I’m much better at performing in a high-pressure environment, where communication, judgment and leadership matter,” she said. That’s what proof of readiness looks like: learning that shows up in performance.
The Gap Between Completion and Performance
The “Workforce Decoded” findings show that employers want evidence that candidates can perform, not simply evidence that they completed a program.
For employers, the gap between completing a program and performing on the job is a business risk. For institutions, it’s a design problem. A program that ends at completion leaves employers to guess what a graduate can do.
The best employers focus not just on recruiting talent but on developing it.
We see this firsthand. Learners seek lower-risk ways to explore career pathways, build confidence and gain practical skills before committing to a degree. They want to make progress, demonstrate capability and see a clear connection between learning and opportunity.
A Lower-Risk On-Ramp to a Degree
In fiscal 2026, more than 50,000 learners like Belen completed a short credential at WGU, and more than 10,000 of them went on to enroll in a bachelor’s or master’s program.
That pattern reveals what many adults want, which is a chance to test their interests, build confidence and develop practical skills before committing to a larger investment.
For many learners, a short credential isn’t an alternative to higher education. It’s an entry point.
What Institutions Can Build Now
If employers want proof, institutions must design for it. In our work at WGU, three choices matter most.
First, build with employers, not for them. Our program councils, which include employers and industry representatives, help define the competencies each program teaches, and faculty build curricula around them. That way, what a learner masters maps to what the job requires.
Second, assess performance, not completion. A credential earns trust when it certifies what someone can do, measuring the way the job measures it. Learners earn credit only by passing assessments, including performance tasks that faculty evaluators score against detailed rubrics.
Third, make every short credential count toward something bigger. Learners who start with a certificate shouldn’t have to start over when they pursue a degree. Certificate courses are accredited credits that stack toward a related bachelor’s degree, so the work counts once on the job and again on the path to a degree.
None of these choices requires that an institution choose between degrees and skills. It requires treating them as one pathway, with proof built in at every step.
Beyond Degrees Versus Skills
The debate about degrees versus skills has always been too narrow. Employers want both educational attainment and evidence that someone can learn and adapt.
So, here’s my ask of higher education leaders: Instead of asking whether a learner leaves with a degree or skills, ask what proof of readiness your programs produce and whether employers can see it.