Do you have a college degree? If you don’t, you are not alone. While higher education has long been a trusted path to a high-paying career, recent trends in the job market and employment data suggest that a bachelor’s degree may not be necessary for many jobs. According to data published by the Federal Reserve Bank of Atlanta, only 40% of workers in the United States had a bachelor’s degree in 2020.1
There are many employment opportunities that require fewer years of higher education and many that require advanced education. However, in their analysis of the job market published in 2022, The Burning Glass Institute concluded that in 2021, only 44% of jobs required a college degree.2 This number is a marked decrease from the 51% of jobs requiring a degree in 2017.
Why are job requirements changing?
Employers are shifting their focus when recruiting candidates for “middle-skills” jobs. These positions require skills beyond what a high school education provides but less than what a full 4-year college degree provides.
In the past, a listing for many of these jobs may have required applicants to have a bachelor’s degree. This basic requirement reassured employers that an applicant had the skills necessary to perform the job. Unfortunately, requiring a degree eliminates a large portion of the applicant pool, including many individuals with less opportunity or access to higher education.
Success in many positions, including customer service, retail, and sales, relies more on skills not taught in the classroom. High performers in these industries often excel in communication, interpersonal relationships, and problem-solving. Frequently harder to teach, these soft skills are invaluable. Employers willing to train employees in the more technical parts of the job can build successful teams upon this foundation without requiring a college degree.
Even without formal training, applicants may already have the skills needed for many middle-skills jobs gained through personal learning, hobbies, certifications, employment, classes, or training programs. Thus, many employers are shifting to a skills-based hiring approach that prioritizes a candidate’s ability to carry out key responsibilities rather than whether or not they attended a college or university.
Why should employers remove degree requirements?
Removing degree requirements from job listings opens employment opportunities for employers and employees. For those without a degree, there are more employment options available. It opens the door to jobs that may be more interesting, rewarding, and fulfilling than the entry-level positions they may have otherwise had to consider.
A Larger Applicant Pool
For employers, removing degree requirements widens the applicant pool. Rather than closing the door on those with only skills and experience, it invites them to apply. It also creates opportunities to hire from a more diverse pool of applicants from various backgrounds. Employers can bring in individuals with unique experiences, perspectives, and ideas, which encourage innovative thinking and problem-solving.
Verified Skill Set
Focusing recruiting efforts on skills also helps ensure the applicant you hire has the right skills. Graduates may have a degree indicating that they successfully completed all the requirements for their degree. However, that does not mean they mastered the skills you need the most or know how to apply them in a working environment. Evaluating candidates based on their skills can be a more accurate way to make sure your new hire is everything you need them to be.
Shorter Time to Hire
Having a broader pool of applicants can also decrease the time to hire. When you are willing to consider candidates with and without degrees, you are more likely to find a candidate who is ready and willing to come on board and do their best to learn and contribute in meaningful ways with less time searching.
Cost-Effective
Many college students have heard they can make more money with a college education. It is not a guarantee, but it is common. For employers, this means paying a higher salary. Sometimes, it means paying more for skills your employee does not need for this position. Hiring skilled candidates without a degree may mitigate this demand from candidates in exchange for a bit more training.
Are there challenges to hiring without degree requirements?
There are two sides to every coin, and this one is no different. For those accustomed to hiring based on educational qualifications, switching to skills-based assessments presents unique challenges.
Skill Verification
The most significant challenge is accurately evaluating a candidate’s skills. Creating an accurate test to assess an applicant’s ability to complete specific tasks may require collaboration between hiring managers and subject matter experts. For example, testing the skills of a developer may require the help of an in-house IT team member. A professional placement service can be a valuable resource for evaluating candidates using trusted skills assessments.
Applicant Perception
Especially for positions traditionally requiring a college degree, applicants may still assume they need a degree to apply. While these perceptions will likely change as more employers move away from requiring higher education, you may still miss out on some skilled individuals due to past hiring practices. Be explicit in your posting about education requirements to help alleviate this perception.
Training Needed
Building and retaining a highly skilled workforce demands regular training opportunities for employees to continuously maintain and improve skills. Those without formal post-secondary education may benefit from additional training to help boost their soft skills or fill gaps in foundational knowledge. Focus training on bolstering specific knowledge and skills to ensure it is directly applicable to the job and will quickly help individuals grow into their position.
How do I begin implementing skills-based hiring?
If you are ready to change the way you hire for middle-skills positions in your organization, a recruitment agency can help you (1) determine which positions don’t actually require the specialized skills that a degree brings, (2) identify the skills most needed to be successful in each position, and (3) create accurate job descriptions to attract candidates who can excel. They can also help you examine options for building talent pipelines, such as temporary or contract hiring programs that help train individuals for these positions before they are ready to apply for a permanent position.
While the workforce is more educated than ever, 52% of college graduates still accept positions that don’t require a college degree.3 Making your company a great place to work and providing applicants with an attractive offer is still an excellent recruiting strategy. Removing the requirement for a higher education degree is one way to remove barriers and invite all qualified applicants to join the team and grow with your organization.
1https://www.atlantafed.org/-/media/documents/cweo/workforce-currents/2023/09/07/the-labor-market-then-and-now-the-first-two-decades-of-the-21st-century.pdf
2https://static1.squarespace.com/static/6197797102be715f55c0e0a1/t/63865c667d4e5637c709dfae/1669749863982/BGI_LaborMarketOutlook_Nov2022_Final.pdf
3https://stradaeducation.org/wp-content/uploads/2024/02/Talent-Disrupted.pdf