Three influential theories are used to understand why employers value and seek out educational credentials in hiring. Qualifications can function as proof of productive skills (Human Capital Theory), as a signal of desirable characteristics (Signalling and Screening theories) or as a means for social closure (Closure Theory). Although these explanations are not necessarily mutually exclusive, they tend to be presented as alternatives in the literature This article aims to better understand why employers value Higher Education degrees within the labour market by assessing these theoretical explanations in particular in cases where employers do not value HE credentials highly. It draws on semi-structured interview data with external recruitment consultants in England (N = 45). The article finds support for each of the three theoretical perspectives. Yet, the findings demonstrate that employers' reasoning can include more than one of the three theoretical perspectives, creating hybrid forms. The article evaluates the implications for the positional competition for graduate jobs.