More Companies Seek Workers With Skills, Eliminate Degree Requirements
The return on investment of a bachelor’s degree is in question, as a new survey of 800 U.S. employers revealed that 45 percent of businesses plan on eliminating college-degree requirements for some positions next year. Many of these companies are seeking candidates with hands-on skills and job experience that recent college graduates lack.
According to a survey by Intelligent.com, 55 percent of companies have already eliminated degree requirements this year. Companies such as IBM, Dell, Bank of America, Accenture, and Walmart have reportedly dropped degree requirements in recent years for many of their entry-level positions. This hiring trend aims to diversify and expand the labor pool by tapping into workers with skills and experience acquired through community college, military service, boot camps, or on-the-job training.
A survey conducted by PublicSquare and RedBalloon revealed that small businesses are increasingly dissatisfied with the pool of college graduates and are losing interest in hiring new grads with a four-year degree. The survey found that 67 percent of small business owners believe colleges and universities are not graduating students with relevant skills, and 83 percent either find no difference or are less likely to hire job seekers with a four-year degree. Practical, on-the-job experience has become a growing preference, with 86 percent of respondents choosing candidates with industry experience over those with a four-year degree.
The tech industry is at the forefront of this hiring trend. While computer coding skills are helpful, many companies, including Apple, are hiring people without college degrees. Tim Cook, CEO of Apple, stated that although college degrees are not required, practical skills are beneficial to job applicants.
The changing hiring requirements and decreasing demand for college degrees suggest a decline in the value of higher education. Andrew Crapuchettes, CEO of RedBalloon, stated, The higher ed system has worked itself out of a job, as colleges have shifted focus away from preparing students for their careers.
As companies seek candidates with skills and job experience, the traditional value of a four-year degree is being challenged. The higher education industry must adapt to meet the demands of businesses and ensure graduates are equipped with relevant skills. The results of the surveys indicate that hands-on experience and practical skills are becoming increasingly valuable in the job market.
In conclusion, companies across various industries are eliminating college-degree requirements to attract experienced and skilled workers. The focus is shifting towards candidates with hands-on skills acquired through alternative means such as community college, military service, and on-the-job training. This hiring trend reflects a decline in the perceived value of a four-year degree and emphasizes the importance of practical, industry-specific experience. As the labor market evolves, it is crucial for higher education institutions to reassess their programs and align them with the needs of today’s businesses.
