Will the trend toward skills-based hiring make college degrees obsolete? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
Answer by Sean Behr, CEO, Fountain, on Quora:
Much ado has been made about the reevaluation of college education, particularly as the costs of many college degrees have risen dramatically while wages have grown much more slowly, at a time when the cost of living has also increased significantly. The cost for a four-year degree increased by more than 160% from 1980 to 2019, according to a Georgetown University study; meanwhile, earnings for workers aged 22 to 27 over that period increased by 19%.
There has been a significant amount of research into whether a degree delivers on its value proposition, but what we do know is that more Americans are reevaluating the path to career success and are opting for other ways to develop skills and gain experience. For many positions, college degrees will continue to be a requirement to fulfill specific qualifications. In areas such as frontline work, skills-based development–whether through trade schools or on-the-job training–is likely to become the dominant way workers advance in their careers and have implications for future hiring.
Alternate Path: Trade schools and apprenticeships
We are in the golden age of alternative credentialing, as many organizations have launched digital skills-development programs and short-term skill acquisition courses that are accessible, often flexible for scheduling, and far less expensive than a college degree. For example, Fast Company reports more than half a million people earned a Google certificate over the last 5 years, some of which cost a few hundred dollars to complete and offer skills in areas including data analytics, project management, and cyber security. Trade schools are booming–mechanic and repair trade program enrollment was up 11.5% from spring 2021 to 2022, while construction trades saw enrollment grow 19.3% according to an AP review of National Clearinghouse data.
Additionally, there is a tight labor market for many professions where on-the-job apprenticeship and field-based experience are paramount, especially in infrastructure and manufacturing where recent federal funding for projects is increasing demand for workers. Recently, Congress struck a deal to propose using Pell Grants, traditionally used to fund education by those pursuing undergraduate degrees, for skills-based training programs to specialize in areas such as manufacturing and construction,
Company-led skills development
If applicants don’t have all the necessary skills required to succeed in a role but display a strong willingness to learn and capability for adaptation, recruiters can feel confident moving them through the pipeline and focusing on training once they’re hired. Meanwhile, existing workers already are familiar with basic processes and systems, and post-training productivity gains tend to outweigh the time lost to reskilling and upskilling, especially when training is efficient. Adding an upskilling component can help companies retain great talent longer while increasing valuable knowledge that adds to the businesses’s growth. Success on this front has been demonstrated by major global brands, for example in 2021 Amazon committed $1.2 billion to provide 300,000 employees with access to education and skills training programs.
To reach candidates who might not fall into the traditional college degree bracket, companies need to reassess their hiring practices to ensure they are equitable and accessible for people of different backgrounds and capabilities. In addition to considering candidates with vocational experience or apprenticeship training, companies should take stock of their company’s holistic strategy for recruiting, hiring, onboarding, and upskilling workers to ensure talent stays engaged with the business and can improve their skills throughout their career, regardless of whether they pursue a college degree.
This question originally appeared on Quora – the place to gain and share knowledge, empowering people to learn from others and better understand the world.
