A recent report by Payscale reveals that one in three companies is shifting away from requiring a college degree for salaried positions. Instead, they prioritize candidates with the necessary skills.
1 in 3 Companies Don't Require College Degree for Salaried Jobs
The study surveyed over 5,700 business leaders and HR professionals late last year, indicating a significant trend in the job market.
While some companies, accounting for 41%, still consider college degree requirements depending on the job, only a smaller portion, 22%, say all of their jobs have a college degree as a requirement.
According to Ruth Thomas, a pay equity strategist at Payscale, this shift in hiring practices could positively impact the 62% of US workers who do not have a degree, as companies focus more on skills than formal education.
However, CNBC reported that this change does not apply to professions like medicine or law, where a degree is essential. Instead, its impact is more significant in middle-tier positions like sales supervisors, construction managers, web developers, and IT help desk specialists.
Leverage in the Job Market
In a statement accompanying the report, Payscale suggests that employers are gaining leverage in the job market despite economic uncertainty. However, employee dissatisfaction persists, and turnover rates may increase if economic conditions improve.
The statement also highlights the importance of technological advancements in HR, particularly in compensation management, in which modern technology can enhance transparency and fairness.
Business officials say compensation is their biggest challenge this year, with half saying it is a top priority investment area next year, followed by recruitment and retention.
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