Employers reassess value of degrees in face of worker shortages

Nearly three quarters of employers are less interested in university degrees than a decade ago, according to new research.

Employers say qualifications are no longer as important as before but soft skills are more so, according to new research from the global hiring platform, Indeed.

Four in five employers (81%) say, providing a candidate has the right attitude, they would be more invested in those looking to start an entry level position without a degree.

This flexibility and willingness to train and upskill talent is indicative of the hiring landscape – where recent ONS statistics show the number of job vacancies in April to June 2022 at an all time high of 1,142,000.

As demand for workers continues to exceed pre-pandemic levels and as worker shortages persist, employers are showing signs of being more open minded than ever regarding qualifications.

87% of employers would favour a positive work attitude over qualifications in an entry level job and 78% value those candidates passionate about the role higher than those that hold a degree.

Employers also believe a strong work ethic (62%) and willingness to learn (63%) to be the biggest attributes to those most likely to succeed in their career; these soft skills are valued six times more than having a strong university degree (13%) or high A-levels (11%).

Transparency and guidance around entry-level jobs needed for A-level students

However, that message isn’t always getting through to students who largely still believe employers are on the lookout for university graduates (87%), with a further 53% thinking it would give them more options for their future career.

Perhaps it’s no surprise that students feel this way with almost a quarter (24%) not aware of other options outside of higher education or university post A-levels.

With this addressed, almost three in four (74%) confess they would be more likely to go straight into an entry level job if they knew a degree wasn’t a necessity to their employer, with 83% wanting more opportunities from employers to entice them into the job market.

When it comes to the results day itself, 41% say they would be less nervous about opening that significant envelope if a good job, regardless, was on the table. Entry-level roles on Indeed’s platform have risen by 51% since 2019 with some offering starting salaries above the national average.

Fibre network engineers command the highest salary of any entry-level position, earning an average salary of £34,600 followed by junior software engineers (£31,600), trainee engineers (£26,700) and recruiters (£26,600).

The cost of living crisis is tempting some student to consider jobs over higher education

Macroeconomic factors, such as the cost of living and economic slowdown are having an impact on future choices of students

For those students who do want to go straight into the workplace, 55% aren’t sure where to begin and rising costs are pushing many further away from the traditional path of going to university before starting their careers. A staggering two thirds (66%) would choose to go straight into work for monetary reasons (35% citing cost of living and 32% saying university is too expensive).

Danny Stacy, head of talent intelligence at Indeed, said: “A-level results day is an anxious and exciting time for students hoping to earn the grades they require to enter university. But for hundreds of thousands of people not planning on higher education, it’s a time for evaluating what the future holds and considering the jobs and careers open to them.

“The good news for those planning on taking their first step on the ladder is that the jobs market appears in good shape and this is also true of entry-level roles, which are at their highest point in three years. Our research also suggests that employers are showing greater willingness to look beyond university degrees alone and take into account attitudes and soft skills.

“There are more job vacancies in the UK than unemployed people causing acute hiring challenges and our survey shows that employers are exercising greater flexibility to recruit fresh talent, and potentially lower requirements.

“While recruitment should be guided by skills demanded by the role, employers should also be open to thinking outside the box when looking to fill vacancies and taking a more flexible approach to candidate requirements.

“Young people can be the breath of fresh air that many struggling industries need. What they lack in workplace experience, they make up for with a host of soft skills. Building diverse workforces is conducive to performance – diversification in age is no exemption.”