Jamie Dimon: College degree is 'less important' than skills in hiring.
According to JPMorgan Chase CEO Jamie Dimon, a bachelor's degree in finance or accounting is not necessary for a successful career in banking.
The Wall Street veteran emphasized his belief that skills are more important than education when selecting the best candidate, while speaking on LinkedIn.
According to Dimon, being an Ivy League graduate or having excellent grades does not guarantee success as a great worker or individual.
Having a college degree is not as important as possessing skills for many jobs, he stated.
JP Morgan Chase has shifted its hiring approach to prioritize skills over degrees, as stated by Dimon.
JP Morgan Chase has confirmed to Fortune that around 80% of its current "experienced hires" positions do not require a college degree.
High-paying job opportunities may be inaccessible to millions of job seekers who possess alternative qualifications but lack a college degree, as 62% of Americans do not have a college degree, according to the latest Census data.
During the "great resignation," the trend of removing degree requirements from job postings gained momentum as companies struggled to fill their vacancies. In response, they revised their recruiting processes and broadened their talent pools.
Recent research from McKinsey & Co. indicates that jobs such as construction managers, sales supervisors, web developers, and cybersecurity and tech roles are experiencing an increase in applicants without degrees. These positions typically require specific technical abilities or certifications, but not necessarily a four-year degree.
Studies indicate that not all businesses are fulfilling their commitment to hire more individuals without a college degree.
A study by Harvard Business School's Managing the Future of Work project and the Burning Glass Institute (BGI) examined over 11,000 hires from 2014 to 2023 and discovered that only 20% of employers who dropped their degree requirements significantly altered their hiring practices.
The report suggests that the lack of understanding of the cause of this trend is due to the fact that initial executive excitement did not result in a change in the underlying systems and practices.
LinkedIn's Dimon stated that high schools should be doing more to support companies' skills-based hiring initiatives and expose young people to degree-free career paths.
To help more young people secure high-paying jobs without needing a college degree, Dimon suggested that schools should incorporate teaching program management, basic finance, data analytics, and cybersecurity skills into their curriculum.
He stated: "The practice is advantageous for society, low-income individuals, and corporations. Most companies desire to implement it, but it has not been widely adopted in our country until now."
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