Why Employers Trust Skill-Based Credentials Over GPAs in Today’s Hiring Process

12.19.2025 | Credentialing, Why NOCTI

If you’re a student, job seeker, or early-career professional, you’ve likely been asked countless times: “So… what’s your GPA?” For decades, this single number was treated as the ultimate indicator of student success and a key factor in landing a good job after graduation. But the world of work is changing. Technology is evolving, roles are becoming more specialized, and as a result, the hiring process has evolved alongside them. Today, many employers are far less focused on GPA and far more interested in what individuals can actually do.

Across industries, hiring managers are increasingly relying on skill-based credentials, CTE certifications, and competency assessments to determine who moves forward in the hiring process. This shift has major implications for the next generation of job seekers, especially those looking to stand out in a competitive job market.

Here’s why employers trust skill-based credentials more than GPAs, and how you can use this trend to showcase skills and open doors to future opportunities.

 

The Limits of GPA as a Hiring Metric

Not all GPAs can be measured equally. A 3.8 at one school might reflect very different expectations and grading policies than a 3.8 at another. Even within the same institution, a GPA earned in a technical engineering program isn’t directly comparable to a GPA in sports medicine. As a result, employers are often left to interpret what a GPA truly represents, leaving significant room for interpretation and inconsistency in the hiring process.

Academic success doesn’t guarantee job success

While academic achievement demonstrates knowledge, most jobs demand more than strong grades. Success in the workplace often hinges on collaboration, creative problem-solving, communication, and adaptability—skills that traditional coursework and grades don’t always capture. This is where skill-based testing adds value, assessing practical application and real-world performance. When combined with knowledge-based assessments, such as multiple-choice tests, these complementary methods provide a holistic view of a candidate’s capabilities—validating both what they know and how effectively they can apply that knowledge in professional settings.

GPAs emphasize theory over practice

An individual can earn top marks in a programming course, for example, without ever building a real-world application. Employers want evidence that candidates can apply what they’ve learned in practical, job-relevant situations.

GPAs can be impacted by factors unrelated to talent or ability

Many individuals balance jobs, caregiving responsibilities, health challenges, financial stress, or other personal obligations while pursuing education and training. A lower GPA doesn’t necessarily reflect a lack of skill, drive, or potential.

Because of these limitations, employers are increasingly adopting to a more fair, accurate, and practical approach to identifying talent: skill-based hiring.

 

The Rise of Skill-Based Hiring

In its Job Outlook 2025 report, NACE research found that nearly two-thirds of employers surveyed use skill-based hiring practices for entry-level positions.

Skill-based hiring focuses on what individuals can do—not where they went to school, how long it took them to complete a program, or what their transcript shows. Instead, employers focus on specific, job-relevant competencies such as coding, data analysis, project management, medical procedures, or digital marketing.

As technology continues to evolve rapidly, employers need individuals who can adapt, learn, and apply new skills as roles change. Skill-based hiring helps opens doors for individuals who may not follow traditional college pathways but who bring skills gained through CTE programs, workforce training, certifications, or hands-on experience.

 

Why Skill-Based Credentials Are More Trustworthy

Skill-based credentials, CTE certifications, and competency assessments aren’t just a trend, they address real challenges in today’s hiring landscape.

Credentials demonstrate job-ready abilities

A certificate in data analytics, for example, doesn’t just indicate that exposure to data concepts; it shows that an individual completed hands-on projects, passed assessments, and demonstrated proficiency with tools like Excel or Python.

Credentials stay aligned with industry needs

Unlike traditional degree programs that may change slowly, skill-based credentials are regularly updated to reflect new technologies, tools, and best practices. Employers can trust that certified individuals are learning skills relevant to today’s workforce demands.

Credentials encourage lifelong learning

Certifications and micro-credentials can be stacked over time–cloud computing one year, project management the next, then perhaps UX design later on. This progression signals to adaptability, motivation, and a commitment to continuous skill development.

 

What Skill-Based Hiring Means for Individuals

GPAs once played a major role in hiring, but today’s employers are far more interested in demonstrated skills than academic metrics alone.

For individuals preparing for careers, this shift is empowering. Success no longer depends on a perfect GPA or single educational pathway. What matters most is the ability to learn, practice, and demonstrate real-world skills.

There are now more pathways than ever to showcase capabilities, verify readiness, and build a career based on what individuals can do, not just what appears on a transcript.

 

 

Partner with NOCTI/NBS to Get Started with Skill-Based Credentials

For over 55 years, NOCTI/NBS has been at the forefront of developing industry-recognized credentials and resources that empower individuals while supporting educators and trainers in delivering high-quality, skills-focused instruction.

NOCTI’s skill-based performance testing is a game-changer for verifying real-world competencies. Available through Job Ready Credentials and several Partner Network Credentials, these assessments include distinct knowledge-based and skill-based components, with performance testing serving as a key measure of applied, job-ready skills.  across more than 100 occupational areas. 

Used independently or alongside knowledge-based assessments, they provide a comprehensive and credible measure of workforce readiness. Contact NOCTI to learn how skill-based credentials can help individuals prepare students for career success.