DEGREES ARE OVERRATED - SKILLS MATTER MORE IN HIRING
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Description
By 2030, it is estimated that 85 million jobs will go unfilled due to a lack of available skills. Skills-based organizations will be best prepared to navigate a reality in which AI increases its ability to augment and form part of the workforce.
Deloitte reports that 98% of business executives plan to incorporate more skills-based approaches in the future. Organizations leading the curve report performance increases, talent retention, and employee engagement.
A quick Google search typing ‘degrees are overrated’ gives almost 1.5 million (!) results including articles from renowned publications such as The New York Times, Harvard Business Review, and Forbes. The overall consensus seems to be that degrees are overrated and overpriced while skills aren’t; in fact, they often are underrated.
According to McKinsey, hiring for skills is five times more predictive of job performance than hiring for education and more than two times more predictive than hiring for work experience. Employees without a college degree also tend to stay in their roles 34% longer than those with degrees.
Why then do so many companies still require job candidates to have college degrees? There are various reasons for this, according to one study these reasons include:
· Many employers have not yet updated or innovated how they screen talent and evaluate their potential.
· HR departments use educational status as a filter as they identify and assemble potential candidates.
· Employers believe that candidates with a college degree are more equipped for the role.
· Tradition is to blame; things have simply always been this way.
And this brings us to our first statement of the day:
Degrees are overrated - Skills matter more in hiring.
