The average CEO has more insight into the skills we need five years from now than a university president can even access.
That’s a big problem — for the learning providers struggling to recruit students, for the companies facing persistent talent gaps, and for the individuals who need to reskill for the future of work.
- College enrollment has declined by 15% in the past decade
- Labor market shortages are forecasted to persist for years to come
- 44% of workers’ skills will be disrupted in the next five years
When it comes to skills, employers are feeling the pain. They’re struggling to hire and keep the talent they need, particularly on the frontline.
At the same time, organizations don’t have the skills within their workforces that will give them the agility to survive and grow in the future of work.
Companies are responding, in part, by dropping degree requirements for various roles. Skills-based hiring is on the rise — whole states have eliminated degree requirements for a number of government jobs, as have a growing number of companies (including some heavy hitters) in the private sector.
Dropping the degree requirement for certain roles opens the door wider — and it should. But skills-based hiring alone doesn’t build net new skills that both workers and employers need.
The answer to the skills problem still lies in education, and in the process of better articulating skills acquired through learning programs and identifying the skills needed for today’s jobs.
The answer to the skills problem still lies in education, and in the process of better articulating skills acquired through learning programs and identifying the skills needed for today’s jobs.
Yet, there has been little meaningful conversation between companies and higher ed.
This language barrier has led to wasted opportunity, squandered talent, waning interest in higher education, and a shrinking pool of skilled talent.
It’s time that ended — the future of work is at stake.
The degree is still valuable — but skills are lost in translation.
Although the degree is in decline in terms of job requirements — and even the perceptions of young people — it still holds considerable economic value. A recent Wall Street Journal article summarizes the issue:
- In 2023, 41% of 18-29 year olds said it was very important to get a degree, compared to 74% a decade ago.
- Degree requirements became significantly less common in middle skill positions and even with 31% of high-skill jobs.
- Those with a four year degree still saw a 25% wage premium over those without a B.A. within a year of graduation
The problem is in the disconnect: colleges (rightly) focus on learning outcomes, such as retention rates, graduation rates, and so on, but they don’t also effectively articulate the skills gained during the B.A. that could positively influence the graduates job prospects and starting pay.
What’s more — there’s often no translation of career outcomes as graduates move into the job market.
It’s no wonder employers are starting to drop the degree requirement — it hasn’t been able to keep up with the labor market, mainly because it’s not designed to. From a business point of view, degrees don’t always fully align with or deliver the skills company leaders need to build right now. Requiring degrees can also lead to inequity— excluding marginalized groups from the applicant pool for whom higher education may have been cost-prohibitive.
In turn, individuals are increasingly questioning the value of higher education and opting for other paths, such as more blue collar and hourly jobs that are seeing rising wages.
The pandemic disrupted and delayed college for many, and workers earning higher wages in these jobs are not eager to take on debt in going back to school — even if the degree still offers greater economic potential in the long run.
A stronger connection between business and higher education benefits everyone.
What if employers and learning providers shared a common vocabulary and desired outcome?
Higher education could not only deliver critical thinking but articulate the specific skills gained in a given major or credential.
Businesses, in turn, could provide insight into high-demand fields, and higher education could then design new courses based on those inputs. Individuals could build confidence in education and see tangible pathways to careers that pay family-sustaining wages.
How can education benefits help bridge skill gaps within the workforce?
Let’s be upfront — Guild was founded in 2015 to make just this kind of connection. Our founders saw the opportunity for a unique synergy: colleges and learning institutions were struggling to compete for students; employers needed to attract, retain, and develop talent; and workers needed access to greater opportunity (at less cost) to gain the skills needed to earn a higher wage and succeed in the future of work.
So we got to work making the connection to build a shared success model for all, helping employees access the learning and credentials they need to drive wage-earning potential, while translating those credentials into in-demand skills organizations need today.
Because when there’s a conversation between business and higher education, here’s what happens:
- Learning providers are able to serve more students
- Individuals unlock opportunity and build the skills they need for the careers they want
- Employers access abundant, skilled talent that makes their company more profitable
Skills are gained in a variety of ways. We should recognize them as academic credit.
The degree isn’t the only way to build skills. In fact, traditional education in general isn’t the only way to build skills.
In reality, individuals gain a wealth of knowledge and skills through on-the-job experience, corporate training, and more. Those experiences just aren’t usually translated into academic credit.
$1,900 average potential savings per training through Guild’s Credit for Training program.1
Guild Learning Marketplace data
Some learning providers are beginning to recognize these skills — and innovating their offerings to better serve their students.
At Guild, we facilitate this conversation between schools and businesses to recognize corporate training or work experience as credit toward a degree or stackable credential. This helps:
- Learning providers offer a better experience to students
- Individuals avoid redundant coursework and gain new skills faster
- Save employers time and money in skilling employees
When it comes to building skills through degrees or credentials, it’s “yes, and…”
A conversation between business and higher education is only the beginning. In a world where employers and higher ed speak the same language, they understand the value of skills gained in a variety of ways.
Beyond degrees, beyond on-the-job training and work experience, short-form credentials and innovative learning options offer another critical piece of the puzzle.
Degrees still matter, and they can be redesigned to center on more of the skills today’s workforce needs and to better articulate the skills they already deliver.
But today, there are many more options for education — short-form certificates, career diplomas, bootcamps, and more. Many of these offerings are designed for working adult learners who are short on time but in need of new skills, particularly frontline workers.
For both degrees and alternative credentials, dedicated coaching support can also be a gamechanger in helping employees navigate their options, persist through programs, and land in new careers. Guild has found that coached learners have a 21% higher first year retention rate in bachelor’s degree programs — and a 49% higher on-time graduation rate in non-degree programs — vs. self-serve learners2.
Walmart provides an example of a company dedicated to providing the learning and support needed to prepare its workforce for the future. This retail giant was one of Guild’s first partners, and they’ve led the way for employers in offering a broad range of employer-sponsored education options that enable employees to build new skills and careers, including:
- Foundational offerings such as high school completion and English language learning
- Short-form programs, such as business analytics and project management
- Associate’s and bachelor’s degrees
In partnering with Guild, Walmart enables access to 26 leading academic partners with proven records of successfully serving working adult learners.
The retailer recently celebrated five years of this partnership — an education, skilling, and career mobility program known as Live Better U — by highlighting the 104,000 employees participating in employer-sponsored education.
Participants in Live Better U were 2x more likely to be promoted and had 4x lower attrition compared to non-participants.
Walmart internal data from Live Better U program
The program has saved Walmart associates a collective half a billion dollars in tuition costs, books, and fees — and removed barriers to education and career growth.
That means 104,000 students enrolled in education programs across 26 institutions, and 104,000 individuals unlocked the opportunity to build new skills.
And for Walmart? They’re building internal talent pipelines for the high-demand roles that will help the company evolve and grow. The company found that participants in Live Better U were 2x more likely to be promoted and had 4x lower attrition compared to non-participants.
Together, we can build a future of work that works for everyone.
Dropping degree requirements opens access to certain jobs, but it takes investing in a broad array of education options that index on skills — and partnering closely with the learning providers that offer those options — to build careers. And those careers make up your future workforce.
When it comes to education, individuals are looking for career advancement. Higher education is looking to better serve more students. Businesses are looking to build skills. Having one conversation and shared vocabulary can help build shared success for everyone.
More to explore
Footnotes
- Guild Learning Marketplace data as of 01/01/2023
- Guild's cumulative internal data as of 01/01/2023