Skills-Based Hiring Rises: Colorado’s Push for Non-Degreed Workers

On a Denver bus, Cherri McKinney applied eyeliner effortlessly. Aesthetician turned administrator, she epitomizes Colorado's shift to skills-based hiring.
As the job market tightens, workers without degrees could hit a ‘paper ceiling’

DENVER — On a bustling bus to downtown, Cherri McKinney deftly applied eyeliner using a compact mirror despite the jostling ride and glaring sun. McKinney, a licensed aesthetician, has a varied career path. Starting in bookkeeping after high school graduation in 1992, she later managed a waxing salon, transitioned to human resources at a homeless shelter, and now works as a benefits and leave administrator for Colorado’s Department of Labor and Employment.

Colorado’s state government actively seeks workers like McKinney. In 2022, Gov. Jared Polis signed an executive order promoting skills-based hiring, valuing abilities over education and opening more roles to non-degree holders. During an interview with the state, McKinney faced questions about the Family Medical Leave Act rather than her academic credentials.

For years, workforce advocates have urged employers to remove degree requirements for roles that don’t necessarily need them, as a response to hiring trends from the Great Recession. During that time, job seekers outnumbered available positions, prompting employers to favor degrees even for jobs like administrative assistants and insurance claims clerks. This “paper ceiling,” according to advocates, excludes skilled workers without degrees from well-paying jobs, while employers miss out on valuable talent.

Recently, at least 26 states and companies like IBM and Accenture have reduced degree requirements, focusing on skills. Although a 2022 report by Burning Glass (now Lightcast) indicated a decline in degree requirements, evidence of significant hiring of non-degree holders remains limited. According to a study by Burning Glass and Harvard Business School, less than 1 in 700 hires in 2023 benefited from this shift.

Colorado strives to lead the way in skills-based hiring. Polis’ order allocated $700,000 and three staffers to institutionalize this approach. The National Governors Association and Opportunity@Work reported that the state collaborates with HR departments to rewrite job descriptions to emphasize skills, such as “active listening and interpersonal skills.” The state also launched a dashboard to track progress towards goals like increasing non-degree applicant hires by 5% by summer 2026.

In 2024, 25% of hires in skill-emphasizing job classifications were non-degree holders, unchanged from 2023. Data from other states is limited. Maryland and Pennsylvania, early adopters of this hiring model, track applicants’ education levels but not hires.

To foster private sector skills-based hiring, the Colorado Workforce Development Council aids local workforce boards in assessing employers’ needs and job seekers’ skills. The Pikes Peak Workforce Center in Colorado Springs, for instance, helps businesses draft skills-focused job descriptions and runs workshops on skills-based hiring.

Job seekers are taught to identify their skills and demonstrate their applicability across fields. A high school graduate with student council experience, for example, might highlight skills like time management and event planning. The goal is to align employer needs with job seeker skills, creating a common language for both parties.

Colorado promotes skills development for those not pursuing college by offering industry-recognized credentials in high schools and community colleges. These include certifications like certified nursing assistant and CompTIA cybersecurity, which provide both credits and job-ready skills. The state also boosts work-based learning opportunities, especially apprenticeships.

Gov. Polis, who ends his term in January 2027, advocates for workers like McKinney, who value skill development over traditional education. His administration’s efforts aim to prove the viability of skills-based hiring, hoping to encourage more employers to adopt this approach. Despite the challenging economic climate, Colorado remains committed to creating opportunities for skilled workers without degrees.


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