Shifting Perspective of College Degrees for Workers & Recruiting
How Skills & Experience Are Starting to Outweigh Formal Education
A college degree was once viewed as the main gateway to a career. But in recent years, this perspective has shifted. According to a poll by Indeed, 36% of workers believe their college degree was a waste of time and/or money. This percentage only increases with each generation, with 51% of Generation Z and 41% of millennials saying their degrees weren’t relevant. Compared to 30% of Gen X and 20% of baby boomers.
Additionally, student loan debt is a factor in this belief, as 41% of people with debt were more likely to question the value of their degrees than the 31% without debt.
Degree Relevancy
Still, 79% of college graduates said they learned real-world job skills during their studies. It should be noted that 16% of poll respondents felt their degree became less relevant after one to three years post-graduation. With the introduction of AI, 30% said it made their degree irrelevant.
Building on this sentiment, 52% of college graduates said they would not have attended college if a degree were not required for many jobs, and 60% believe they could perform their current job just as well without one.
Recruitment Trend Adjustments
The degree shift is starting to influence companies as well. In another survey, it was found that 45% of companies are moving away from degree requirements for certain positions. In 2022, over half of companies adjusted their job descriptions to remove a bachelor’s degree requirement and encouraged applicants without one to apply. To cement this change, major companies like Apple, Amazon, and Walmart have incorporated this into their recruitment as they recognize that practical skills are just as beneficial as formal education.
Then, in January 2024, only 17.8% of job postings required a four-year degree, down from 20.5% five years prior. Moreover, 52% of postings did not include a formal education requirement, indicating the trend towards skills-based hiring.
Despite these changes, young adults still pursue traditional degrees because of uncertainty around alternative pathways. 65% of Gen Z fear the risks associated with choosing non-degree paths, which also highlights the need for information about these options to be readily available. While companies are starting to prioritize skills over degrees, 52% continue hiring candidates with degrees as they are seen as less risky.
Alternative Career Options
While young adults are hesitant to leap into non-degree careers, interest in vocational training and trade professions has increased. Industries like welding, plumbing, and HVAC are experiencing an enrollment surge as these sectors can offer stable, well-paying jobs without substantial student loan debt. This demonstrates workers’ growing desire for practical careers that are less likely to be outsourced or automated.
Recent surveys show that the hiring landscape is heading towards valuing practical skills and experience over degrees. As companies continue to embrace skills-based hiring and as alternative career paths become more accessible, workers have more options than ever to achieve a successful career.
