A hot button topic of conversation in today’s current market is whether or not having a degree is more relevant than having work experience. Major corporations like Wal-Mart, Apple, IBM, Tesla and other fortune 500s are following the new trend of interviewing and hiring employees with relevant work experience rather than a 4+ year degree. Is work experience of more value than a specialized education? Learn more below.
According to Burning Glass Institute, since 2021 only 44% of jobs require a college degree, whereas 56% require relevant work experience. This study also showed that only 41% of adults value a college education. Leaders are recognizing that potential employees that have skills, experience, and training are seen as more valuable as a university diploma.
Hiring managers are finding that requiring degrees significantly reduces the talent pool in potential employees. Although having skills and work experience is becoming more valuable, there is still a significant pay gap between employees with degrees vs employees without degrees. But, considering the cost of student loans that need to be paid back, the amount of money that someone with a degree has vs someone without a degree might be more similar than not.
If you are considering starting your career without a degree, here are a few things you can do to give yourself a leg up on the competition:
- Take jobs that require travel
- Have a hobby or extracurricular
This move toward valuing skills over degrees would have a significant impact on the current labor market and the way HR teams hire new employees. It’s important to understand these market shifts to keep up with the competition. According to a CEB Analytics study, solid HR analytics can improve talent outcomes by 12%. If “out of the box” software isn’t getting the job done, then it’s time to build a better mousetrap. Tap into the world’s largest labor market data set with WageScape, and get the insights you need to compete in today’s global hiring market. Let us help you find premium talent today!