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Degrees could be losing value as recruiters say qualifications less important

by Benefits Expert
30/08/2024
Academic study, degree, qualifications, education, skills
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Nearly two thirds (65 percent) of UK employers say that educational qualifications are becoming less important when hiring, according to research by hiring platform Indeed. 

Data showed that 52 percent of sectors in the UK have lower degree requirements than they did six years ago, while requests for education in high-skill, technical occupations have fallen.

Some high-skill, technical jobs are on the UK skilled worker visa list, giving recruiters a reason to focus on skills.  

Not explicitly required

The research showed that only 5 percent of adverts explicitly ask for a university degree, while just 14 percent include educational requirements. 

In roles that require maths, there was a 7 percent drop in recruiters asking for a degree between 2018 and 2024.

For jobs that use social science and information design, there has been a 3 percent decline in requirements for a degree. 

Buck the trend

However, researchers found that certain occupations bucked this trend. For example, adverts for dental roles were more likely to contain education requirements as data showed a 5 percent increase from six years ago.

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The same was true for civil engineering (up 5 percent), therapy (up 4 percent), veterinary (up 4 percent), and scientific research and development (up 3 percent). Most of these may be considered regulated professions, where a shift from degree-based to skills-based hiring is more difficult. 

Indeed said that overall the findings suggest a shift to skills based hiring in a range of industries, as employers increasingly prioritise practical skills and experience over traditional educational.

The UK’s shift away from academic qualifications in favour of a greater focus on skills is in stark contrast to US job adverts, where almost half of postings have educational requirements.

This suggests a cultural difference in how job postings are drafted, with UK employers seemingly more likely to assume rather than explicitly state the need for qualifications in some professions, researchers said.

Skills-first hiring

Jack Kennedy, senior UK economist at Indeed, said: “Our research demonstrates a shift away from measuring a candidate’s suitability for a role purely based on their educational qualifications. 

“Despite this, it is also important to consider that employers often implicitly expect education levels without mentioning them in job postings. To ensure the right candidates feel targeted by the posting, it might be useful to spell out whether a degree is actually needed or if it may be replaced by adequate experience. 

“Whether education requirements are implied or not, with labour supply remaining tight in certain sectors of the UK economy, a move to skills-first hiring may be a wise move for employers needing to extend candidate pools.

“People considering the next steps in their education should be reassured that while educational qualifications are important in some industries, there are many roles that take into account a range of skills and experience alongside education to measure suitability for a job.”

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The US retreat from diversity, equality and inclusion (DEI) is making waves far beyond the country's borders. In the wake of President Trump’s executive order abolishing DEI across federal government departments, global firms like Goldman Sachs and Accenture have rapidly dialled down their own efforts. 

The influence is being felt in the UK too. However, the UK operates under a different legal framework. It has stronger workplace protections and a government actively looking to enhance employee rights through its Make Work Pay agenda. But as US firms reposition their approach to DEI, UK subsidiaries could find themselves caught between conflicting priorities.

In the latest Benefits Unboxed podcast, co-hosts Claire Churchard, editor of Benefits Expert, Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, industry veteran and reward and benefits consultant, discuss how the US DEI rollback might impact UK businesses.

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