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Employers in various industries are dropping the requirement for a college degree when hiring, as they take a more skills-based approach.
The tight labor market has led companies to prioritize skills and competencies over a degree. This shift is correcting the trend of degree inflation, where employers require a college degree for jobs that don’t necessarily require one.
“Part of it is employers realizing they may be able to do a better job finding the right talent by looking for the skills or competencies someone needs to do the job and not letting a degree get in the way of that,” Parisa Fatehi-Weeks, senior director of environmental, social and governance (ESG) for hiring platform Indeed told CBS MoneyWatch.
According to a survey by ZipRecruiter, 45% of employers have eliminated degree requirements for certain roles in the past year. The trend is more prevalent among small businesses, with 47% of them disregarding college degrees as a necessary attribute in candidates.
“Employers are resorting to skills-based hiring and saying, ‘We don’t care if you finished college,'” ZipRecruiter’s chief economist Julia Pollack told CBS MoneyWatch. “There’s a clear trend where smaller businesses are more likely to say they’re doing this versus major enterprises.”
