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Forty-five percent of companies plan to eliminate degree requirements for some positions in 2024; according to a November 29 report from Intelligent.com.
In 2023, 55% of companies removed degree requirements, particularly for entry-level and mid-level roles, the survey shows. Employers said they dropped those requirements to create a more diverse workforce, increase the number of applicants for open positions and because there are other ways to acquire skills.
“Because of the cost of college, earning a degree is generally more difficult for people from traditionally marginalized groups and people from lower socioeconomic backgrounds,” Diane Gayeski, higher education consultant for Intelligent.com and professor of strategic communication at Ithaca College. he said in a statement.
“If a student’s parents didn’t go to college or if they’re from outside the U.S., it can be much more difficult to learn how to apply to colleges and find scholarships and other resources,” she said. “Eliminating a degree can open up jobs for people who couldn’t attend college.”
In a survey of 800 US employers, 80% said they were “very likely” or “likely” to favor work experience over education when evaluating job applicants. Additionally, 81% said it is important for recent college graduates to have work experience.
Among respondents who said they dropped some degree requirements over the past year, the highest percentages tend to be in industries such as information services, software, construction, and finance and insurance.
At the same time, 95% of respondents said their companies require university degrees for at least some roles. About 24% require a bachelor’s degree for three-quarters of their jobs, and 27% require a bachelor’s degree for half of their positions.
“While a young person may be able to land an entry-level job without a degree, the lack of a degree along with the other ‘soft skills’ one acquires in college can make it difficult to climb the corporate ladder,” Gayeski said. he said. “Employers today are looking for people who are culturally fluent in diverse environments, can demonstrate and document their leadership skills, and are flexible to respond to new challenges.”
Alternative education and training programs appear to be valuable to workers, according to the survey. About 75% of respondents said their company values certificate programs, followed by 68% who said associate degrees have value and 61% who said online degrees and apprenticeships have value.
Ongoing employee training is also important. About 70% of respondents said their company pays for additional training as part of their benefits package. Additionally, 45% of employers offer student loan repayment benefits.
More than half the jobs no four-year degree requirements are needed, according to a report by Bain & Co., OneTen and Grads of Life. Companies can attract a more diverse workforce by focusing job descriptions on the skills required for that position.
Many state and local governments have degree losses for most jobs, including Alaska, Maryland, Minnesota, New Jersey, Pennsylvania, Utah, and Virginia. The aim is to improve access to and retention in government roles, and to emphasize skills and work experience as professional qualifications. Companies like Walmart have announced plans eliminate degree requirements and rewrite job descriptions also.
Although skills-based hiring has gained traction in the past year, Recruitment practices are still coming up and remain influenced by traditional requirements, according to LinkedIn data. The change in hiring appears to be less dramatic than the change in job postings, which could indicate a split between recruiters and hiring managers in making this change.