A college degree does not guarantee that a person will earn a family-sustaining paycheck — or that they will find purpose in the work they do. More Americans are embracing this idea.
And now, some employers’ talent practices are catching up.
The Burning Glass Institute has released an updated Skillability Index, which highlights U.S. employers that have embraced skills-based talent practices. The Index encompasses job posting, hiring, and promotion data from nearly 1,000 companies across 138 industries and covers nearly 1,000 occupations. It examines eight key metrics across three categories: job posting practices, hiring practices, and facilitating career growth.
That last category may be the most important, the Burning Glass Institute concludes. Why?
“[W]hen non-degree workers see clear paths to advancement, retention improves significantly compared to organizations where advancement remains degree-dependent,” the Index says. “Further, companies that promote based on demonstrated capabilities rather than credentials report higher employee engagement and see increased applications from non-degree candidates, creating a virtuous cycle of talent attraction and development.”
The new Index, released in January 2026, highlights:
- A fast casual restaurant chain that has implemented a structured career progression model that helps entry level crew members advance to senior management roles;
- An insurance company that uses an internal talent marketplace that enables current staff to apply for any open role, regardless of its alignment with their current position; and
- An airline that created an apprenticeship program to facilitate career movement from frontline roles to corporate positions.
Embracing talent practices like these is a win-win for employers and employees. The Index notes companies that have implemented skills-based hiring see 20 percent higher retention rates while, at these companies, workers’ salaries rise by about 25 percent.
“The Skillability Index offers a framework to help organizations assess and develop talent practices that unlock human potential,” says Charles Koch Foundation Vice President for Future of Work Laura Demarse. “By providing comparative benchmarks, the Index can assist companies at various stages to understand their current position and identify potential next steps. Companies that pay attention will earn strong reputations as great employers. Meanwhile, more people will find purpose and fulfillment in their careers.”