It appears that workers without degrees are not receiving as many job offers as expected.

• Several major corporations, including Walmart, Amazon, Apple, GM, Bank of America, Uber, Nike, Delta Air Lines, and Target, are urging workers without college degrees to explore different job opportunities and are eliminating degree requirements from more job postings.
• Skills-based career opportunities can result in pay increases of up to 25% for workers, and companies benefit from employees who are more likely to remain in their roles.
• Some labor researchers claim that not all companies are following through with a significant number of hires as data on corporate recruiting efforts is reviewed.

Numerous prominent companies with substantial workforces across the country are emphasizing skill-based hiring and removing degree requirements from job postings. This trend reflects a growing preference for hiring based on abilities rather than college education completion, particularly as the labor market faces a shortage of workers and the value of a college degree is increasingly questioned by American citizens.

Some evidence suggests that certain efforts related to degreeless hiring may not be achieving their intended goals.

A study by Burning Glass Institute and Harvard Business School examines how companies fare in their attempts to hire non-degree holders, which is crucial for U.S. workers, as over half of them lack degrees, and affects their chances of obtaining higher-paying jobs and better positions.

While the number of companies promoting efforts to hire people without degrees is increasing, there is limited evidence to suggest that these workers are actually obtaining the jobs. A research study by Burning Glass aims to quantify this issue by analyzing data from top U.S. employers. However, the study only considers a limited range of alternative pathways and does not take into account other methods people without degrees may use to join organizations, such as apprenticeships and internships. Despite these limitations, the study provides a snapshot of how some top employers are approaching the issue of hiring based on skills rather than degree attainment.

According to Matt Sigelman, president of the Burning Glass Institute, employers are still hiring the same people they were before, despite what was found.

More than 60% of U.S. workers don’t have degrees

The significance of the move to hire individuals without degrees lies in the substantial number of people who fall into this category. According to U.S. Census bureau data, approximately 62% of Americans lack degrees. While this push does not apply to low-level jobs that have never required a degree or professional positions such as doctors or lawyers, it does impact middle-tier jobs like construction managers, sales supervisors, web developers, cybersecurity, and IT help desk specialists. These jobs typically require specific skill sets and training but not necessarily a four-year degree.

It is crucial for job seekers to understand how different companies approach skills-based hiring, as it can help them determine their chances of receiving a fair opportunity.

On average, workers who take on a job that previously required a degree and don't have one experience a 25% increase in salary, which translates to an additional $12,400 in earnings per year.

To compare specific companies or sectors based on factors such as hiring, pay, promotion, parity, and culture, workers can use the American Opportunity Index. This index rates companies on a 1-5 scale, with 5 being the highest, and focuses on jobs open to those without a degree. It is a joint project of the Burning Glass Institute, the Managing the Future of Work Project at Harvard Business School, and the Schultz Family Foundation.

Joseph Fuller, a professor of management practice at Harvard Business School, advises job-seekers to compare companies in the same sector using the index to assess their hiring and promotion practices for non-degreed workers. Fuller believes that while there may be commitment at the management level of the companies mentioned in the report, policies must be executed to fulfill those commitments.

Ranking Walmart, Apple, GM and others

A new study by Burning Glass researchers was conducted due to the increasing trend of employers removing degree requirements. Despite the growing interest among companies to provide opportunities to non-degree holders, the study reveals that this desire does not always translate into practical implementation.

A database of 65 million American workers' career histories was used to base the study's observations, which represents approximately 40% of the U.S. workforce. The sample included 11,300 roles, and researchers were able to observe a significant volume of hiring for at least one year before and after a firm removed a degree requirement.

The report only included companies with strong data coverage, which were observed to have more than 500 unique job ads annually. The sample consisted of roles from 1,134 different companies.

Major employers such as Koch Industries, , , , , , , and made tangible changes in their hiring practices, with only 37% of firms analyzed doing the same.

According to Sigelman, the success of some companies in changing their hiring profile indicates that it is not a shortage of talent that is hindering skills-based hiring efforts. Instead, it suggests that managers may be hesitant to hire individuals without degrees, unless there are specific policies in place to evaluate their skills. If there are two candidates, one with a degree and one without, many hiring managers may feel it is risky to choose the candidate without a degree.

Bank of America, Amazon, Oracle and others receive scrutiny

A study found that 45% of firms removed degree requirements from job postings, but there was no significant change in hiring patterns, according to researchers. Companies in this category include , , , , and .

Companies that were accused of not fulfilling significant hires explained to CNBC that they were unable to verify the data, disagreed with researchers' findings, or highlighted actions they have taken to enhance their skills-based hiring processes.

An Amazon spokesperson stated via email that although we cannot confirm the survey's methodology based on the provided information, the conclusions are not accurate. A significant number of Amazon roles do not necessitate a college degree.

In recent years, the percentage of Bank of America hires without four-year college degrees has been steadily rising, with approximately 40% of its 2023 hires being filled by such candidates.

Lockheed Martin met its goal of creating 8,000 apprenticeship opportunities one year ahead of plan through various programs such as technical apprenticeships, mid-career development programs, new college hire rotation programs, and internships.

"Our software division is focusing on recruiting candidates based on their skills rather than their educational background, as demonstrated by examples we have provided," a spokesperson stated via email.

Oracle and Kroger did not respond to email requests for comment.

Nike, Uber, Delta and the ‘backslide’ risk

"Backsliders" was the term given to the final 18% of firms in the study.

Researchers have identified companies such as , , HSBC, Novartis, , and Meijer as backsliders who made initial progress after removing degree requirements but later relapsed.

A Meijer spokesperson stated that the company has never made a commitment to hiring team members with or without degrees due to the diverse range of roles within the company. Additionally, the spokesperson emphasized that Meijer offers education benefits, including free undergraduate education for all team members upon hire, with no waiting period.

HSBC's spokesperson via email stated that the report's limited scope does not fully understand the complex effects of skill-based hiring, which overlooks the diverse advantages of our approach in fostering a high-performance culture and enhancing the work experience for our employees.

Delta stated that the data presented in the report does not reflect a trend observed in the aggregate and that the company remains dedicated to skill-based hiring. In an email, a spokesperson emphasized that Delta's focus is on hiring the most qualified candidates for each role, regardless of their skill acquisition background.

No response was received from Nike, Uber, Novartis, and US Foods regarding comment requests.

Degreeless career success tips

Researchers have discovered several common practices among successful leaders in skill-based hiring that can aid others in achieving their goals. One such practice is to recognize and showcase individuals within the organization who excel without a degree, thereby reducing the stigma associated with hiring individuals without a degree.

Successful companies clearly articulate the skills required for a job before posting it, and ask hiring managers to specify the skills they are looking for and evidence of skill acquisition.

Assessing skills in skill-based hiring involves processes such as candidate-blind reviews of projects submitted by job prospects. This enables companies to evaluate the quality of work without revealing the identity of the candidate.