Companies Eliminate Degree Requirements, Embracing Skills-Based Hiring
By Extra-Ordinary Women
American businesses are undergoing a transformative shift in their approach to hiring practices, with an increasing number of companies, including industry giants like Walmart, IBM, Accenture, Bank of America, and Google, announcing their plans to eliminate college degree requirements for various corporate roles. This trend reflects a broader change within the U.S. job market, one that de-emphasizes the significance of a traditional four-year diploma, according to experts.
Venture capitalist and author Michael Gibson, known for his book “Paper Belt on Fire,” has been a vocal proponent of alternatives to the traditional higher education system in the United States. He views this shift in hiring practices as promising, especially in light of the staggering $1.6 trillion student debt burden that weighs down many Americans. “I think that has hobbled the passions and dreams of a lot of people,” he said. “I think that’s why we see this political struggle to cancel the debt. But, the most aggravating part is that everyone’s paying attention to the poor students who are billed, but no one is blaming the universities themselves for teaching worthless things or not providing the sort of career advice that they should.” He added, “The more we see people foregoing that system to start a career, the better.”
Walmart, for example, has taken a bold step by eliminating college degrees as a requirement for hundreds of its corporate positions. The company’s aim is to remove “unnecessary barriers” that hinder career advancement. Walmart has also expressed a willingness to waive the requirement for a university degree if candidates can demonstrate the necessary skills through prior experience.
According to a report from the Burning Glass Institute, between 2017 and 2019, 46% of “middle-skill occupations” and 31% of “high-skill occupations” saw a decrease in college degree requirements. This shift in requirements is poised to have significant implications for how employers discover talent and create opportunities for the two-thirds of Americans without a college education. The report even projected that this change could open up 1.4 million job opportunities for American workers without college degrees over the next five years.
At the governmental level, states across the country have followed suit by removing degree requirements for government jobs, with Virginia becoming the 13th state to do so in June.
Joe Camberato, co-host of Apple TV’s “2 Minute Drill” and CEO/founder of National Business Capital, commented on the trend, stating that he was “not surprised” to see major companies dropping degree requirements. He attributed this shift to a high demand for employees coupled with evolving perspectives on college requirements among newer generations.
While certain specialized positions in fields like medicine, accounting, and law still necessitate appropriate degrees, Camberato believes that degrees should not be the primary focus of recruiters and corporations in many other sectors.
Gibson, in his book “Paper Belt on Fire,” challenges the notion that a college degree is indispensable for a successful and fulfilling career. “There are lots of things you can do without a college degree,” he explained. “Starting companies is easy because you are your own boss, so you don’t need to prove your skill set, you just need to make something people want.” He emphasized that more companies, including Google, are now questioning the value of a college degree.
The escalating cost of a college degree, combined with the burden of student debt carried by millions of Americans, has prompted corporations to embrace “skills-based hiring” methods. Entrepreneur Ted Jenkin, CEO/founder of Exit Stage Left Advisors and Oxygen Financial, emphasized that real-world experience and a proven track record of success are increasingly vital in today’s business world. “It’s becoming clear with the out-of-control cost of college education that the very word ‘degree’ is getting watered down, and companies want to hire people who can prove they can get things done.”
Gibson attributes this trend to employers’ ability to more easily assess the skills of potential hires. This shift is especially noticeable in tech roles like computer engineering, where prospective employees can showcase their coding skills on platforms like GitHub, acting as an independent portfolio that can help them secure employment irrespective of their formal credentials.
However, Gibson acknowledged that certain jobs and career paths still highly value a four-year degree. He noted that in areas where qualities like conformity, commitment to long-term projects, punctuality, and adherence to assignments are crucial, colleges play a significant role in filtering out individuals who may lack these attributes.
Marva Bailer, a technology executive with extensive experience, highlighted the increasing focus on talent development through bootcamps, apprenticeships, and skill-based learning programs. These initiatives are aimed at attracting unemployed and underemployed adults. She also mentioned Guild Education, utilized by companies like Walmart, which facilitates early engagement with potential employees and has contributed to a 60% increase in salaries for first-time jobs up to $85,000 per year.
For those without a college degree applying for jobs, Wendy L. Patrick, a lecturer at San Diego State University Fowler College of Business, advised being prepared to explain how they spent their time. In many cases, employers value real-life work experience, technical skills, and managerial abilities more than a degree in a specific field. Patrick emphasized that employers often look at why a candidate chose to enter the workforce immediately, and candidates who can demonstrate hard work, proactivity, and initiative can be highly marketable.
Gibson underscored the importance of learning “cheaply” on the job as a valuable form of education. He believes that, despite concerns about job displacement due to artificial intelligence, AI can serve as a more cost-effective alternative to traditional college education. “I’m actually more inspired by the potential for AI to act as a lifelong tutor than I am worried about the potential job loss,” he said.
In conclusion, the transformation in hiring practices within American businesses is challenging the conventional emphasis on college degrees, driven by factors such as student debt, rising education costs, and the evolving needs of the job market. While degrees remain essential in certain fields, a growing number of employers are prioritizing real-world skills and experiences when considering job candidates. This shift is reshaping the landscape of higher education and career paths, offering new opportunities for those who may not have pursued a traditional college degree.
