According to a recent report from Intelligent.com dated November 29, nearly half of US companies are set to remove bachelor's degree requirements for various job roles in 2024.
This follows a trend observed in 2023, where 55% of businesses already eliminated degree mandates, especially for entry-level and mid-level positions, as highlighted in the survey.
Employers have explained their decision to drop degree requirements, stating it's to build a more varied team, attract more job applicants, and acknowledge that skills can be acquired through other means.
US Companies RemoveDegree Requirement Amid Education Cost Concerns
The ongoing cost of living crisis severely affects millions of Americans daily, influenced by various external economic factors. Considering the time and financial investment involved, this situation has led numerous high school students to question the value and affordability of a four-year bachelor's degree.
With the rising cost of higher education in the US, similar to trends in many countries, obtaining a degree has become increasingly difficult for many people.
Despite these challenges, the primary motivation for young individuals pursuing higher education remains the prospect of better job opportunities.
Diane Gayeski, a higher education advisor for Intelligent.com and a professor at Ithaca College, highlighted in a statement that the high cost of college makes obtaining a bachelor's degree particularly challenging for those from underrepresented groups and lower-income backgrounds.
She pointed out the additional hurdles faced by students whose parents didn't go to college or who come from outside the U.S., noting the complexities in applying to colleges and accessing scholarships and resources.
Gayeski emphasized that removing the bachelor's degree requirement from job qualifications could open up opportunities for those unable to pursue a college education.
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Survey: Employers Prioritize Experience Over Degrees
A recent study of 800 US employers revealed that 80% are more inclined to value job experience over educational background when reviewing job applications. Additionally, 81% consider it crucial for new college graduates to have work experience.
The survey also found that industries like information services, software, construction, finance, and insurance will most likely have dropped some degree requirements in the past year.
Despite this trend, 95% of these employers still require bachelor's degrees for specific roles. Around 24% demand a degree for three-quarters of their positions, while 27% need it for half of their job openings.
Gayeski notes that while young individuals can secure entry-level jobs without a bachelor's degree, climbing the corporate ladder might be challenging without the degree and 'soft skills' gained in college.
Employers are increasingly seeking candidates who are culturally adept in diverse environments, possess proven leadership skills, and can adapt to new challenges.
The survey also indicates employers' growing appreciation for alternative education and training programs. Approximately 75% of those surveyed value certificate programs, 68% recognize the worth of associate degrees, and 61% see online degrees and apprenticeships as valuable.
Moreover, companies are investing in ongoing employee education, with about 70% offering to fund further education as a benefit. Additionally, 45% of employers provide student loan repayment benefits.
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