Greetings, dear parents of budding innovators and STEM enthusiasts!
For those who are confused about the future of education and its relevance to the job market, I am honored to share insights on upskilling versus a traditional degree.
The prevailing assumption is that the key to success is a bachelor’s degree. While earning a degree can improve important skills, contemporary developments challenge the idea of a direct correlation between a degree and career success.
Our latest analysis, drawn from the Skills-Based Hiring study published by the Burning Glass Institute and HBS, identified two categories of companies that are changing their hiring policies:
– Skills Based Hiring Leader: These visionary companies are making real changes, increasing their hiring of workers without college degrees in relevant positions by nearly 20%.
– In Name Only: About 45% of companies appear to be making surface-level adjustments, changing their stated requirements without meaningful changes in actual hiring practices.
Based on this interesting and in-depth study, I will list the reasons leading to ‘Degree Deflation’, how it helps skilled candidates, future trends, and how giants like Walmart are benefiting from the change. Skills Paradigm Shift: A Transformative Journey In a changing economy, many university degree holders are not using their qualifications to the fullest in their work. In many situations, they do not get the opportunity to use their qualifications in the right way. This highlights the need to prioritize hiring based on skills, not titles.
Important research from Harvard Business School and the Burning Glass Institute provides a compelling picture of this transformative journey. The study revealed that around 37% of companies have implemented skills-based hiring practices in recent years. Notable pioneers in this movement include industry giants like Walmart, Apple, and Target, who champion progressive approaches.
Degree of Inflation to Degree of Deflation
A significant transformation is sweeping the economy as companies review their approach to hiring in response to a skilled worker shortage. This shift, known as “Degree Deflation”, marks a departure from the previous “degree inflation” trend. Degree Inflation refers to past conditions where companies required degrees for positions that did not require them.
This shift is not just a matter of policy; it’s about recognizing the untapped potential of the more than 70 million skilled workers in the US who do not have a college degree but have the experience, drive, skills and abilities to fill critical roles in the labor market. By removing degree barriers, companies open the door to individuals who have long been marginalized from opportunities that could enhance their social status.
Leading this movement are industry giants like IBM. The company has eliminated the bachelor’s degree requirement for more than half of its US job openings. Walmart’s recent decision to revise job descriptions now allows applicants to qualify for positions based on relevant experience or alternative forms of learning.
Likewise, states like Virginia and New Jersey have taken decisive action to eliminate degree requirements for most state-classified positions, signaling a broader societal shift toward skills-based hiring practices. The data shows as much: from May to August 2022, government agencies saw a whopping 41% increase in hiring individuals without a degree. Additionally, states such as Alaska, Minnesota, Pennsylvania, and Utah have followed suit, eliminating degree requirements for many job categories.
Employers are increasingly recognizing the importance of non-degree workers, citing their ability to reach full productivity more quickly, lower absenteeism rates, and reduced likelihood of leaving competing companies compared with recent college graduates. This sentiment is also supported by the findings of a Harvard Business School and Accenture study, named “Dismissed by Degrees.”
In a bold step towards inclusivity and diversity, 45% of US-based companies have taken proactive steps to remove college degree requirements from their job postings. This strategic shift, spearheaded by corporate giants such as Bank of America, Amazon, and Lockheed Martin, highlights a growing awareness of the limitations of traditional education in measuring individual potential.
Unleashing the Power of Skills: Realizing Economic Mobility and the Future As Diane Gayeski, former dean and professor, puts it, “People should not pursue a four-year college degree as a ticket to an instant first job.” Instead, cultivating broad experience and creativity through exposure to diverse concepts and ideas is paramount. You may ask, why should we advocate skills over degrees? The reasons are rooted in pragmatic realities and real results:
1. Expanded Job Opportunities:
According to a Burning Glass Technologies report, a degree requirement was not listed in 43% of job postings in 2021. This clearly shows there are increasing opportunities for individuals without a traditional degree. Furthermore, this opens the door to skilled employees and undergraduate students who can now access more job openings across a wider range of career paths and industries.
Recommended Reading: How to Choose a Career Path For Your Child
2. Increased Earning Potential:
The starting salary for college graduates in 2021 is $55,260, according to a study by the National Association of Colleges and Employers. The same report highlights that skilled workers in the IT and healthcare sectors earn comparable or higher salaries. Similarly, individuals from AI, data science, and cybersecurity earn salaries of more than $100,000 per year.
3. Faster Entry into the World of Work:
Research from Strada Education Network and Burning Glass Technologies states that individuals with skills-based training enter the workforce 50% faster than college-educated candidates. This ultimately leads to changing the entire career trajectory of the candidates by enabling them to start earning sooner.
4. Reduces Financial Burden:
According to a College Board report, the average annual tuition and fees for students at four-year institutions ranged from $10,560 to $27,020 in 2022. By the end of 2023, total student loan debt in the US surpassed $1.6 trillion. By bypassing the need for a traditional degree, candidates can avoid financial burdens.
5. Real World Relevance:
According to the US Bureau of Labor Statistics, the healthcare, information technology, and skills sectors are expected to grow multiple times between 2020 and 2030. This is causing a shift as hiring managers begin to prioritize practical skills over degrees. Additionally, 69% of hiring managers expressed dissatisfaction with conventional CVs that lack skills-based programs or training
By equipping our children with these skills, we empower them to navigate the dynamic landscape of innovation and entrepreneurship with ease.
Walmart Leads by Example In line with recent trends, Walmart has embarked on an initiative to empower its employees with the tools and knowledge necessary in today’s competitive landscape.
Since its founding in 2018, Walmart’s Live Better U (LBU) education has provided access to higher education opportunities from top academic institutions such as the University of Arkansas, Purdue Global, and Spelman College. To date, LBU programs have equipped more than 126,000 employees with the skills and credentials needed to excel in their roles.
Lorraine Stomski, Associate Senior Vice President of Learning and Leadership at Walmart, summarizes the essence of this transformative effort: “We want employees to have the ultimate flexibility and control over their careers, so we make it easy for them to earn college credits easily. by attending training.” With this approach, Walmart is pioneering a new era of skills-driven success.
Going forward, the impact of lowering degree requirements could be enormous. A 2022 HBS and Burning Glass report estimates that in the next five years, eliminating degree requirements could open 1.4 million jobs to workers without a degree, marking a significant step toward a more inclusive and equitable workforce.
Empower Your Child’s Journey: Charting a Path to Success
As administrators of our children’s education, let us embrace the ethos of the skills revolution with unwavering determination. Encourage your child to explore their interests, immerse themselves in hands-on experiences, and embark on a journey of continuous learning.
We at Moonpreneur understand the current need and role of gathering technology skills through a college degree. To enable future wonders to be future-ready, we have created a program that focuses on exponential learning, roboticsthe future of work, and more. Meet the Innovators Program, where your child will learn about Robotics/Applications or technical knowledge Game Developmentprogramming basics (coding), statements, variables, working with sensors, and more. This program is designed to instill deep technical skills along with leadership, innovation, and entrepreneurial thinking.
By doing this, we transcend the limitations of the ‘paper ceiling’ and unleash the limitless potential of skill-driven success. Together, let’s plan a future where every child has the opportunity to grow and thrive in an ever-expanding array of possibilities. If you want your child to experience the potential of our program, attend the biggest event of the year just around the corner – Moonbattle Conference 2024. Designed for parents, students, and young entrepreneurs, this conference explores STEM, eLearning, robotics, and more, and aims to to encourage innovation & problem solving skills.
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With confidence and foresight, we pave the way for a generation of pioneers ready to leave an indelible mark on human achievement.
In the snippet:
- The company increased non-degree hiring by nearly 20%.
- In response to the scarcity of skilled workers, companies are turning to ‘Degree Deflation’.
- 43% of 2021 job openings eliminate degree requirements.
- Employers prioritize practical skills over pedigree.
- Technology skills open up entrepreneurial opportunities.
- The ongoing trend towards skills-based hiring to increase opportunities.
The post Skills Soar Beyond Degrees as ‘Paper Ceilings’ Take a Delightful Blow appeared first on Moonpreneur.
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