In 2023, the proportion of job listings on the hiring platform ZipRecruiter requiring a bachelor’s degree decreased to 14.5 percent. In 2022, it was 18 percent. The growing trend of companies removing traditional college degree requirement barriers is making jobs accessible. A recent survey showed that 70 percent of companies eliminated bachelor’s degree requirements to create a more diverse workforce. But what does this mean for higher education?
While most companies require degrees for some roles, nondegree holders still have options. For some, this trend might mean they no longer value higher education. They may see the cost of a degree as outweighing its return on investment. For others, a degree is a way to increase their earning potential and stand out in a rapidly crowded market. The onus is on higher education institutions to map their curricula to include skills employers need. By exploring this trend more deeply, you’ll be armed with insights to develop a strategy for your higher education institution to move forward.
The employment landscape is more open than ever. A third of companies say they have removed educational requirements from job listings. Although many claim that college degree requirements depend on the job, the market opens to those in the U.S. without college degrees, who comprise 62 percent of the working population. This hiring trend primarily affects middle-tier jobs, impacting those seeking entry into that market.
Major industry players, like Walmart, Bank of America, and Delta Airlines, are eliminating bachelor’s degree requirements and focusing more on skills and work experience. This action brings many positive changes to the employment market. It also presents challenges for employers, graduates, and higher education institutions, as hiring candidates based on their individual skills and aptitude can reduce operational costs and open up a wider talent pool. However, a standardized system is still needed to evaluate prospective employees.
Technology is advancing rapidly, and the workforce must adapt quickly to new challenges and learn new skills. Some companies realize that traditional education offers no guarantees that graduates can remain agile. Instead, they look for individuals with the specific skills to thrive in these environments.
In 2023, 73 percent of employers used skills-based hiring. Skills and talent shortages also force companies to match job requirements with skills rather than credentials. Instead of relying on a degree, companies are screening prospects using proven skills assessment methods.
Another driving force behind this trend is the growing emphasis on diversity, equity, and inclusion in the workplace. Skills-based hiring allows employers to tap into these diverse backgrounds and hire people who have acquired valuable skills on their work journeys.
Until recently, the purpose of higher education was clear — to enrich society and provide graduates with well-paying jobs. Today, perceptions have changed. Degrees are more expensive than ever, and prospects are wary of debt without guaranteed returns. A massive 49 percent of Americans say it is less important to have a college degree to get a well-paying job. A further 29 percent say the cost of a degree is not worth the debt — perceptions of degrees as necessary are changing.
Bachelor of Arts degrees, in particular, are under fire, and many believe they do not equip students with the skills to succeed in the workplace. While many employers still see the value in higher education, their perceptions have also changed. Many see a gap between higher education and preparing students for work.
Although employment trends open employment to many skilled individuals, a college degree provides better employment prospects and higher income. Few employers would be willing to turn down candidates with degrees from Harvard Business School, for example. In addition to proving that prospects have the determination and intelligence to complete a degree, a college degree offers the following benefits:
The job market changes rapidly, but some careers are still obtainable only with college degrees. Technology, health, and finance are among the fastest-growing fields. They evolve so often that a solid foundation may be the most effective way for candidates to differentiate themselves in a crowded market. A bachelor’s degree is an excellent way to sharpen skills and habits necessary for successful careers.
Some degrees offer a less direct route to the job market but are still necessities in specialized fields like teaching. Prospective students with goals to enter specific careers can still benefit from college degrees. In many cases, they are nonnegotiable.
Many jobs are accessible to nondegree holders, but degree holders generally have higher earning potential. Bachelor’s degree holders earn 68 percent percent more than people with high school diplomas, and the earning gap widens. Students who progress to higher levels of education can often expect a proportional earning capacity.
Critical thinking is a core component of higher education, and institutions strive to create environments that sharpen this skill. It’s hailed as one of the most vital outcomes in higher education worldwide. Students signify their commitment to personal and professional growth by getting a degree. In addition to rigorous academic demands, a degree instills qualities like discipline, time management, resilience, and communication.
Graduates enter the job market with practical and theoretical insights, which help them navigate the complexities of their careers more effectively. The higher earning potential associated with a degree is not based solely on academic performance. Instead, it relates to the holistic development and career preparedness that comes with higher education.
Students who complete their degrees gain more than academic kudos. Many find it personally and professionally rewarding. In addition to earning skills like writing, time management, and collaboration, students get opportunities to polish their presentation skills. They also interact with faculty and other students who, in time, become members of their valued professional network.
Earning a degree is also empowering. Graduates can enter the job market with confidence in their ability to master complex challenges and tackle setbacks.
College graduates are much more likely to participate in their community initiatives. They are more than twice as likely to volunteer and contribute almost 3.5 times more money to donate to charity than high school graduates. In addition, 75 percent of bachelor’s degree graduates vote in presidential elections, compared with 52 percent of high school graduates. As more active citizens, higher education graduates contribute to a more robust and engaged community.
Higher education institutions aim to prepare students for the job market. If the market changes, they must adapt in response. In positioning students for success, they remain relevant in a landscape that seems counterintuitive for the time being. They can evolve in the following ways:
Higher education institutions integrate employability outcomes into their curricula to meet market needs. In many ways, higher education is measured by graduation outcomes — or how students perform once they enter the job market. In addition to adapting curricula to achieve these outcomes, institutions can offer comprehensive career services and counseling to prepare students for the workforce.
Career services and counseling boost success and increase employability. They also provide higher education institutions with opportunities to engage with employers, which can lead to further opportunities for students.
Some other initiatives institutions can implement to align educational outcomes with market needs include:
Institutions can more effectively align outcomes with a changing market by involving industry experts in curriculum development. Inviting professionals from various sectors to provide insights on the skills they prioritize when hiring allows institutions to tailor effective programs. They can collaborate with experts in several ways, including advisory boards, guest lectures, and curriculum reviews.
Institutions with consistent communication channels with industry professionals can regularly improve their curricula and facilitate student engagement with industry players.
Skills in high demand today could quickly become obsolete in today’s employment landscape. Students who start their careers as experts must continue broadening their knowledge throughout their working lives. Employees need to sharpen their technology and industry skills regularly, and many employers provide in-house training programs to invest in their workforce.
Despite some organizations offering these advantages, many workers seek other alternatives, including higher education. Students over 25 who pursue higher education after spending time in the workforce make up about 40 percent of enrollment in higher education. Institutions must lean into this trend to stay relevant. They must offer more flexible learning options to engage this growing population.
As the job market opens to more diverse groups, so must higher education. Most students need education beyond what the standard classroom model can provide. With advanced education software, institutions can provide personalized learning plans to students of diverse backgrounds. They can customize class schedules, learning formats, and degree programs to make higher education more accessible to people with careers.
Generative artificial intelligence (AI) has caused a stir in higher education. Many institutions have banned it in the classroom to promote honesty and ensure students achieve genuine learning outcomes. However, AI and similar technologies are essential in the job market, and prohibiting their use could be a costly mistake. Today, working knowledge of AI tools is desirable for potential employers.
The most effective measure of student success is assessment. Once an institution has mapped a curriculum that aligns with the employment market, the next step is to assess its effectiveness. With innovative assessment practices, institutions can get a comprehensive review of performance in relation to their strategic initiatives.
Transformative assessment practices allow institutions to define and align learning outcomes, providing a common language for faculty and stakeholders. Aggregating data gives them a holistic view of outcomes so institutions can prioritize career-readiness improvements, demonstrate their impact on employers, and drive continuous improvement.
Although a college degree still offers significant value to students, skills-based hiring may well form a long-term part of the future economy. Higher education institutions must continue to evolve in response to the changing demands of the workforce. Those who rise to the occasion with skills-based curricula, education technology, and lifelong learning initiatives will stand out in the new higher education landscape.
Institutions can stay relevant by improving the student experience. Instead of being the only path to high-level careers, they must position themselves as the better option. In creating a seamless and personalized experience for students, they can appeal to a whole new market of prospective students.
A college degree is still a significant advantage when entering the job market. However, higher education institutions must transform their approaches to stay relevant in a changing landscape. They must show students and employers that they equip graduates with the necessary skills to add value.
With Watermark’s integrated education solutions, you can track student progression toward their degree and career. Our Educational Impact Suite (EIS) allows you to collect, synthesize, and analyze complex data to identify improvement areas and determine how to proceed. Maximize your impact through improved performance and educational quality with Watermark. Contact us today to learn more!
