In an era of tight labor markets, more companies are embracing skills-based hiring to source candidates without college degrees. According to a 2023 report by the Burning Glass Institute, nearly 50 percent of middle-skill job postings now emphasize skills over degrees. Over the past two years, more than 20 states have eliminated degree requirements for public sector jobs.
The role of college degrees in hiring
This trend is part of a more significant movement where employers, including tech giants like Apple and IBM, are reassessing the role of college degrees in hiring. The rise of the “skills-first” movement has opened pathways to better-paying entry-level roles for many workers.
Data from the Federal Reserve shows a 4.3 percent increase in wage growth for those without a four-year degree in 2023. But for workers, the story doesn’t stop there and, in fact, is considerably more complicated.
It’s true that more jobs no longer require college degrees. The latest data from the Georgetown Center on Education and the Workforce suggests that individuals with more than a college degree will still hold two-thirds of “good jobs”—those paying a minimum of $43,000 per year and a median annual salary of $74,000.
For the 40 million Americans with some college education but no degree, the momentum creates a huge opportunity but also represents a troubling paradox. Just because a first job doesn’t require a college degree doesn’t mean that a worker can maintain a long-term career in a given industry, where continued career growth often can—and does—require a degree or advanced credential.
Four strategies for creating “extended pathways”
In other words, these open doors to entry-level roles could lead to career dead-ends if future reskilling and upskilling opportunities aren’t available. Here are four strategies for how employers can create “extended pathways” that provide opportunities for career entry and support long-term career success.
It’s important to remember that adult learners and workers aren’t starting with a blank slate. Many adults possess valuable skills and knowledge from community college, military service, on-the-job training, and life experiences.
Consider the case of the Build Better Careers initiative, led by the Council for Adult and Experiential Learning (CAEL) where I serve as president. Supported by a $15.7 million grant from the Truist Foundation’s Where it Starts Initiative, this initiative mobilizes educators, talent developers, and employers to help high-potential individuals from underserved communities.
Experiential learning programs, such as internships, apprenticeships, and on-the-job training, allow adults to gain practical experience while acquiring new skills. These programs not only provide real-world exposure but also help learners and workers build professional networks that are crucial for career advancement.
Finally, it’s essential to recognize that many adult learners and workers face systemic barriers such as food insecurity, inadequate child care, and a lack of affordable housing, which can hinder their ability to pursue education and employment opportunities.
Creating extended pathways for adult learners—beyond the on-ramp to the initial point-of-hire—serves the interests of employers while creating a more inclusive and equitable workforce. To be sure, the national economy may be shifting to an employer’s hiring market, where companies can pick and choose.
But the fast-changing nature of the labor market suggests that tight labor markets and skills gaps are here to stay. The benefits of creating long-term career pathways for adult learners and workers are clear. Indeed, more and more companies are quickly recognizing the benefits of embracing an “internal mobility” mindset. For example, JP Morgan Chase has invested in internal training and placement, a central tenet of its approach to talent development.
In 2021, the financial services giant was able to fill about one-third of its open positions through internal candidates, including nearly 30 percent of senior-level roles. Supporting adults in their journey from first job to long-term success can help uplift individuals and strengthen our workforce and communities.
