Monday, October 21, 2024

More employers say college doesn’t matter, but many still do

While some employers are dropping degree requirements, the shift to skills-based hiring is slow, affecting millions of workers without a bachelor's.

  • Some employers are dropping degree requirements, but it’s not increasing hiring rates.
  • Though some employers don’t ask about degrees, many still prioritize them.
  • Focusing on skills instead of degrees could help many U.S. workers access better job opportunities.

Ranji McMillan, a job seeker, worries when she sees jobs that state they don’t require a degree. She feels these positions may not suit her experience and may lead to unfulfilling work. Despite having an associate degree and over ten years of experience, finding a suitable job has been challenging.

Many U.S. workers face what’s called the “paper ceiling,” hindering their job prospects even as some employers claim they are hiring based on skills instead of degrees. Experts warn that while degree requirements are being dropped, hiring practices aren’t changing much.

Studies show that only a small percentage of hires are made based on skills rather than educational credentials. In fact, only 1 in 700 hires are made this way, highlighting the slow pace of change in recruitment practices.

Hiring for Skills

Research indicates that hiring based on skills is more effective than relying on educational background. Companies that adopt skills-first hiring could see better performance and lower turnover rates.

However, many employers are still hesitant to fully embrace this approach. Often, hiring managers stick to traditional qualifications to minimize risk, which can prevent them from diversifying their talent pool. There’s a pressing need for a paradigm shift in how candidates are assessed.

Looking forward, most jobs will require ongoing education or training as industries evolve. This shift presents a challenge for many workers, especially those from backgrounds without formal education.

Mona Mourshed, CEO of Generation, emphasized that while some leaders advocate for skills-first hiring, most companies are not yet ready to implement these practices consistently.

Despite obstacles, a focus on skills-based hiring can drive economic mobility and create opportunities for workers who might feel overlooked due to lacking traditional qualifications.

McMillan continues her job search, facing emotional and financial struggles. She reflects on her experiences and often feels that even with a degree, she would have had to adapt significantly over the years.

If you have experiences to share regarding workplace changes or job searching, Business Insider is interested in hearing from you. Reach out through a non-work device.

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