Summary: U.S. employers see universities and colleges as the gatekeepers of labor talent, yet these institutions don’t place a high value on teaching students the practical, marketable skills they’ll need to succeed in the industry. This is bad for businesses, but it also sets up the average American worker for failure from the start of their careers, as many people are employed solely on the basis of their four-year degree, even when they lack the practical experience and expertise required to do the job. Alternative educational pathways that equip students with marketable skills need to be given more weight if we are to effect change as an industry. Now is the time for businesses to improve the legitimacy of skills-based hiring, dispel myths about technical training, and move forward to ensure that all students have access to the same possibilities.
Almost 10 million people in the United States are currently without work; how is this possible?
Why? Because nobody in charge of American universities is held responsible for making sure all students graduate ready for jobs that pay well enough to support themselves and their families. Furthermore, the traditional four-year degree requirement is still used as the main mechanism by which firms evaluate potential employees. As a result of this glaring mismatch, almost 15 million Americans are currently unemployed or underemployed.
In today’s advanced society, this antiquated method is obsolete. U.S. education system need to be rethought so that students graduate with marketable skills. Additionally, businesses will need to modify their selection processes and criteria for open positions. The education sector can help the economy recover from the pandemic and avoid future job deficits by tackling this issue head-on.
First, we need to examine how well our current system of education is preparing its graduates for the workforce. Nearly one in five Americans who have earned a bachelor’s degree or higher within the past five years from either a two- or four-year college said they did not learn the skills they needed to succeed in their first job after graduation, according to a recent survey by Cengage (publication forthcoming). Almost half (42%) of these college grads thought unqualified because they lacked all the abilities stated in the job description, and more than half (53%) have not applied to an entry-level job in their industry because they felt unqualified.
Postings for entry-level positions that just require a bachelor’s degree have dropped by 45 percent since the start of the pandemic, indicating that businesses are increasingly seeking applicants with more practical experience. And yet, we cannot count on education to be the bedrock of our economy and a cornerstone of talent recruitment if our system is failing to prepare students for a profession.
There is a persistent bias against vocational and non-traditional education.
It is possible that the United States is one of the only places where there is still a stigma attached to vocational and technical education. Vocational education has long been viewed as a means to middle-class economic mobility in Europe, and as an efficient means of equipping students with the skills they’ll need to advance in their chosen professions in countries like Germany, Austria, and Switzerland. Sixty-five percent (65%) of all occupations in the United States demand a bachelor’s or associate’s degree, closing off opportunities for millions of Americans and, simply, being unnecessary for success in many of today’s available jobs. However, over two-thirds (61%) of business and HR leaders admit to dismissing resumes without four-year degrees, even if the candidate was qualified.
This means that millions of talented people who couldn’t afford a four-year degree in the United States are being overlooked by employers. Many of these people are unable to attend college because they cannot finance the four-year programs. In-state tuition and fees at four-year public universities reached $10,560 for the 2020-21 academic year, $27,020 for out-of-state students, and $37,650 for four-year private colleges, while the median annual household income in the United States was around $68,703 in 2019. (Including living expenses and tuition, some four-year universities can cost as much as $70,000 annually.) Given that this is out of reach for many families (perhaps the vast majority of families), a skills-based vocational education offers an attractive alternative.
Changing the Way Businesses Think – Venturing Off the Beaten Track
Some groups are taking their own unique approaches to delivering effective non-traditional learning opportunities. While Google has recently announced new certificate programs and job search experiences geared at discovering positions that match individuals’ experience and education, IBM has created its Pathways in Technology Early College High School (P-TECH) to help kids gain employable digital skills. In our technology department, for instance, we no longer demand a bachelor’s degree because we know that the necessary skillset can be attained through non-degree means, such as micro-credentials and certification programs.
Both businesses and universities have a part to play in equipping the next generation of workers with marketable skills.
Hiring managers must be aware that the present system in terms of education could be evolving:
- Try to estimate how many of your unfilled posts actually call for a four-year college diploma. To begin, it’s important to identify the specific skills required for available positions, and then to check if there are any other ways to get them except a four-year university education. Is there any particular benefit to the position that a degree could provide?
- Whenever possible, revise job postings and descriptions to accommodate applicants with varying levels of education. It may be a good idea to get a second opinion on open job postings from a neutral party to make sure the phrasing isn’t discouraging applicants from less conventional backgrounds. If we keep passing over job candidates who have taken untraditional educational routes, we will never have a diverse, equitable, inclusive, and productive workforce.
- Provide workers with access to courses and certification programs so they can gain marketable skills.
Institutions of higher learning should work with businesses to ensure that students graduate with marketable skills:
- Improve the current state of blind trust between businesses and institutions by encouraging more two-way communication, and you’ll have a workforce full of motivated individuals ready to take on any challenge.
- Micro-credentials, badges, programs, and certifications are becoming increasingly popular among American students, therefore make them available.
- Focus on helping students identify and more simply demonstrate to employers what job-ready abilities they’ve developed as part of their education and training, rather than the two- or four-year degree or credential as the output.
Recruiters and human resources departments face a challenging dilemma when deciding whether to choose a candidate with the appropriate degree or one with the skills needed for the job because of a misalignment between academic achievement and career preparation at educational institutions. The solution should be self-evident: businesses need to shift their perspective on people who have pursued non-traditional educational pathways in order to attract and retain top talent and create a workforce equipped to handle the challenges of the future. Now is the time for businesses to improve the legitimacy of skills-based hiring, dispel myths about technical training, and move forward to ensure that all students have access to the same possibilities.
