The cost of college degrees has strongly outpaced inflation in recent years. According to Best Colleges, between 2000 and 2021, average tuition fees jumped 69%. Federal funding for Pell Grants and other financial aid has also declined, leaving hopeful college graduates carrying much greater debt than previous generations. This news, coupled with stagnant wages, has Gen Z (born in the late 1990s to early 2010s) questioning the return on investment in college degrees. This, in turn, makes employers struggle to justify college degree requirements.
Views about higher education are changing
EduBirdie surveyed 2,000 young North Americans about their financial outlook and feelings about the current education system. they found:
- A college education is one of the most expensive purchases young people make, with the average student borrowing $29,000 to fund their studies
- 32% of students who combine work and education suffer from mental health problems, while 50% of them sacrifice sleep or leisure time, are ridiculed by their peers and postpone dating.
- Nearly 60% are dissatisfied with their current salaries and 70% say the school did not provide them with the skills necessary to negotiate their salaries
- 25% feel unprepared to handle financial responsibilities
- 70% feel that the education system has failed to teach them how to manage their money, and 47% agree that financial literacy is the area of education they would like to improve most
In an interview with Avery Morgan, Chief Commercial Officer at EduBirdie, she noted, “The fact that some jobs require a high level of specialized knowledge cannot be overlooked. The college system continues to do a great job of providing that, and producing talent that companies can rely on.” However, employers should realize that graduates are not necessarily ready for the workplace. They have the knowledge, but they don’t have the skills yet, so don’t expect too much, too soon; give them time to adapt; and provide training to help them improve in areas such as communication. Conflict resolution and problem solving.
Morgan recommends organizations “don’t skimp on salaries or you’ll find yourself paying to train talent for other companies. Your new recruits have already struggled financially during college, and our findings show they’re not good at discussing their salaries, so don’t expect them to approach you and ask for more.” They will simply move out as soon as they get a better offer elsewhere, leaving you to cover the cost of replacing them.
These statistics reflect a growing concern about college-educated employees. Proactive employers see this as an opportunity to focus their approach to recruiting talent beyond traditional universities.
Case Study
Earlier this year, Walmart removed college degree requirements for some corporate jobs. Facing a tight labor market, Walmart sees this as a competitive advantage to remove unnecessary barriers to career advancement and reflects a broader focus on skills. They rewrite job descriptions, allowing other related degrees or transferable skills required for the job to be obtained through prior experience or other types of learning.
“Both options are important,” Walmart said. “Although degrees should be part of the equation, and in some cases are required, there are many roles where a degree is not necessary, including at corporate headquarters.”
Retail and operations roles provide a unique opportunity to learn skills while progressing from the front lines into management and beyond into corporate roles that have historically been sourced from colleges and universities.
College degrees have long favored white students who have access to more generational wealth. There are many financial barriers for first-time college students, including a lack of resources for expensive test preparation or tutoring and familiarity with complex application processes. While previous generations could pay off their college loan debt in ten years or less, Generation Z is expected to take 16 to 19 years.
It’s time for organizations to pivot
This represents a clear opportunity for U.S. companies to change their sourcing strategies, eliminate college degree requirements where possible, help pay off college debt, and provide more financial education and mental health support to their employees.
These trends highlight the need to re-evaluate the current landscape of higher education and employment. It emphasizes the importance of making education more accessible, providing better support for students’ financial and mental well-being and rethinking the role of a university degree in the labor market. This evolving perspective on education and employment can contribute to a more inclusive and equitable future.
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In recent years, there has been a growing debate over the necessity of college degree requirements for many jobs. The traditional belief that a college degree is essential for success in many professional fields is being challenged by various experts and professionals. There are compelling arguments to be made for why college degree requirements may be unnecessary in certain cases, and it is important to consider these reasons in order to adapt to the changing landscape of the workforce. In this essay, we will explore five reasons why college degree requirements may be unnecessary for some jobs and why alternative qualifications should be considered.