{"id":10200,"date":"2019-12-09T15:04:37","date_gmt":"2019-12-09T20:04:37","guid":{"rendered":"https:\/\/blog.brainstation.io\/?p=10200"},"modified":"2020-05-20T15:48:46","modified_gmt":"2020-05-20T19:48:46","slug":"why-apple-and-other-tech-companies-no-longer-require-a-degree","status":"publish","type":"post","link":"https:\/\/brainstation.io\/blog\/why-apple-and-other-tech-companies-no-longer-require-a-degree","title":{"rendered":"Why Apple (and Other Tech Companies) No Longer Require a Degree"},"content":{"rendered":"

As the competition to discover and lure top tech talent heats up, some of the world\u2019s top tech companies have found great success by rethinking a longtime requirement in their search for skilled workers: the college degree.<\/span>\u00a0<\/span><\/p>\n

Recent studies by\u00a0<\/span>LinkedIn<\/span><\/a>\u00a0and\u00a0<\/span>Glassdoor<\/span><\/a>\u00a0found a number of leading companies have ditched their requirements for a\u00a0four-year\u00a0college degree, including Google, Apple, IBM, Nordstrom, Costco and Bank of America. That\u2019s in line with recommendations from experts like those at the Harvard Business Review, which\u00a0declared\u00a0in 2017 that \u201ccompetency is more important than credentials\u201d and warned of how degree requirements could threaten the economy.<\/span><\/p>\n

Put simply, a bachelor\u2019s degree is no longer a barrier for entry to work at the world\u2019s top companies.<\/span><\/p>\n

\u201cWhen you look at people who don\u2019t go to school and make their way in the world, those are exceptional human beings,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Google\u2019s former senior vice-president of people operations, Laszlo Bock. \u201cAnd we should do everything we can to find those people.\u201d<\/span><\/p>\n

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Why has there been such a dramatic shift in educational expectations? Here are some of the reasons tech workers no longer need a college degree to thrive in their field.\u00a0<\/span><\/p>\n

It\u2019s All About Skills<\/b>\u00a0<\/b><\/h2>\n

In an influential 2016 letter to U.S. President Donald Trump, IBM President and CEO Ginni Rometty described the rise of \u201cnew collar\u201d jobs and the shifting skills requirements to excel in those positions.<\/span><\/p>\n

In 2017, IBM\u2019s vice-president of talent Joanna Daley told\u00a0<\/span>CNBC Make It<\/span><\/a>\u00a0that about 15 percent of her company\u2019s U.S. hires don\u2019t have a\u00a0four-year\u00a0degree and that the tech company now looks at candidates who have hands-on experience through bootcamps or industry-related vocational classes.<\/span><\/p>\n

\u201cGetting a job at today\u2019s IBM does not always require a college degree; at some of our centers in the United States, as many as one-third of employees have less than a\u00a0four-year\u00a0degree. What matters most is relevant skills, sometimes obtained through vocational training,\u201d Rometty\u00a0<\/span>wrote<\/span><\/a>.<\/span><\/p>\n

\u201cIn addition, we are creating and hiring to fill \u2018new collar\u2019 jobs \u2013 entirely new roles in areas such as cybersecurity, data science, artificial intelligence, and cognitive business.\u201d<\/span><\/p>\n

Excelling in positions such as those often requires highly specialized training that is in line with the absolute latest industry trends, which isn\u2019t necessarily a strength of large colleges with rigid four-year curriculums.<\/span><\/p>\n

For example, HackerRank\u2019s annual\u00a0survey\u00a0of student developers attending college found that only 32 percent reported learning to code in school, with 27 percent saying they were self-taught.<\/span><\/p>\n

\u201cMore businesses should overhaul their outdated practices and stop pretending that when it comes to the skills they need in employees, there\u2019s any correlation between a degree from one of the nation\u2019s elite schools and high performance,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Upwork CEO Stephane Kasriel.<\/span><\/p>\n

That explains why a LinkedIn study found that companies including Apple, Oracle, and Google often ask either for a degree or \u201cequivalent practical experience.\u201d<\/span><\/p>\n

\u201cThe\u00a0four-year\u00a0degree isn\u2019t gone altogether but we\u2019re starting to see a shift in what these companies are looking for,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Laura Lorenzetti, editor at LinkedIn. \u201cThere\u2019s a growing emphasis on skills over school as they compete for top talent. People still see the\u00a0four-year\u00a0degree as a signaling factor but companies are taking experience as seriously as a\u00a0four-year\u00a0degree.\u201d<\/span>\u00a0<\/span><\/p>\n

A Tech Talent Shortage Has Employers Rethinking Their Priorities<\/b>\u00a0<\/b><\/h2>\n

By now, you have surely heard about the industry-wide\u2013 and ever-growing \u2013\u00a0<\/span>demand for tech talent<\/span><\/a>\u00a0and that there are simply not enough skilled workers to meet it. The U.S. Bureau of Labor Statistics is forecasting the employment of computer and information technology professionals to grow by\u00a013 percent\u00a0by 2026 \u2013 faster than the average for all occupations. Meanwhile, a recent report from\u00a0G2 Crowd\u00a0found that 80.8 percent of employers reported that it\u2019s more difficult to fill positions now compared to 2015, while 51 percent said that the difficulty owed to a lack of talent.<\/span><\/p>\n

IBM has felt that crunch.<\/span><\/p>\n

\u201cWe\u2019ve got a massive skills gap across the tech industry, so people with non-traditional backgrounds are really becoming valuable,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Kelli Jordan, talent leader for IBM\u2019s New Collar Initiatives program. \u201cYou don\u2019t need to go get a computer science degree to be a web developer. You can learn those languages in a variety of ways.\u201d<\/span><\/p>\n

In the past, a phenomenon called \u201cdegree inflation\u201d led to many companies\u00a0<\/span>requiring degrees<\/span>\u00a0for jobs that had traditionally been filled by workers who didn\u2019t have one.<\/span><\/p>\n

A 2014\u00a0report\u00a0from Burning Glass Technologies looked at the scope of degree inflation by comparing the number of people in a certain occupation who have a degree to the number of job postings requiring one. The report found a credentials gap of 26 percent for management jobs, 21 percent for computer and math jobs, and 13 percent for sales jobs.<\/span><\/p>\n

With a glaring shortage of talent in tech, it would be self-defeating for companies to exclude so many skilled workers because they don\u2019t have a credential that might not even be relevant to their job.<\/span><\/p>\n

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\u201cFor decades, at many companies that I worked for, I wasn\u2019t allowed to hire unless somebody had a\u00a0four-year\u00a0degree,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Trish Torizzo, chief information officer for Houghton Mifflin Harcourt, which recently dropped its degree requirement for applicants.<\/span>\u00a0<\/span><\/p>\n

\u201c(Now) supply is so low that people are almost being forced to think more creatively about how they operate.\u201d<\/span><\/p>\n

It Creates a More Inclusive Environment<\/b><\/h2>\n

Ottawa-based eCommerce giant Shopify has never demanded a college degree in its job postings.<\/span><\/p>\n

\u201cWe don\u2019t require any background or a specific amount of experience in any specific field. Instead, we want someone who can make an impact,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Shopify\u2019s director of talent acquisition Anna Lambert, who noted that after seven years \u2013 and 3,000 hires! \u2013 she has seen a major shift in the industry.<\/span>\u00a0<\/span><\/p>\n

\u201cThere\u2019s less focus on experience and more on your ability to do the job.\u201d<\/span><\/p>\n

In fact, Lambert\u2019s recruitment team includes someone who used to be a welder \u2013 a background she says is \u201cvery different, but somehow totally applicable.\u201d She suggests that instead of asking prospective employees for a specific experience and deciding they aren\u2019t qualified, try to make all people feel welcome and consider where their strengths might lie.<\/span><\/p>\n

\u201cA more inclusive job posting will show that you know experience comes in all forms \u2013 and you want that,\u201d Lambert said.<\/span><\/p>\n

Taking a more open-minded approach to educational requirements could also help to reverse the tide of an\u00a0ongoing crisis in tech: a lack of diversity. \u00a0<\/span><\/p>\n

Colleges in the U.S. and around the world continue to struggle with\u00a0<\/span>inequality and a lack of diversity among their student populations<\/span><\/a>. That mainly owes to economics; while\u00a0<\/span>83 percent<\/span><\/a>\u00a0of students from high-income families in the U.S. enroll in college, only\u00a063 percent\u00a0from low- and middle-income families do the same.<\/span><\/p>\n

That\u2019s part of what motivated Upwork to drop their degree requirements for new hires.<\/span><\/p>\n

\u201cIncreasingly,\u00a0four-year\u00a0universities produce too few graduating classes that are reflective of the country\u2019s racial, social, and economic diversity,\u201d\u00a0<\/span>said<\/span><\/a>\u00a0Upwork CEO Stephane Kasriel. \u201cBecause of their soaring fees, colleges are pricing themselves out of reach for many Americans. As a result, businesses are in danger of being walled off from huge sections of America\u2019s talented pool.<\/span>\u00a0<\/span><\/p>\n

\u201cThe people who may be shunted to the margins of the labor market won\u2019t be disqualified for lack of intelligence or skill, but because they simply can\u2019t afford to pay for school.\u201d<\/span><\/p>\n

In fact, a 2017\u00a0research project\u00a0from the Harvard Business School determined that employers \u201cappear to be closing off their access to the two-thirds of the U.S. workforce that does not have a\u00a0four-year\u00a0college degree.\u201d<\/span>\u00a0<\/span><\/p>\n

The problem is only getting worse as college becomes more out-of-reach for many Americans; average annual tuition costs at\u00a0four-year\u00a0universities more than\u00a0doubled\u00a0between the 1985-86 and 2015-16 academic years, from $12,052 to $26,120 after adjusting to inflation.<\/span><\/p>\n

\u201cIf education becomes unaffordable for most and companies continue to require college degrees, we\u2019ll perpetuate a system by which those companies will only hire from a relatively small and privileged group of graduates,\u201d Kasriel said. \u201cThat makes no business sense for a country that\u2019s already suffering from a painful lack of know-how in many crucial tech sectors.<\/span><\/p>\n

\u201cIt also isn\u2019t fitting for a country known as the land of opportunity.\u201d<\/span><\/p>\n

A Lack of Value<\/b><\/h2>\n

Both employers and workers alike are complaining that the\u00a0four-year\u00a0college degree isn\u2019t necessarily bringing an adequate return on investment.<\/span><\/p>\n

We\u2019ve covered the high costs of a college education already, and the results aren\u2019t necessarily always there. According to the 2018\u00a0Freelancing in America\u00a0survey, 93 percent of freelancers with a\u00a0four-year\u00a0college degree said skills training was useful for the work they currently did, compared to only 79 percent who said their college education was useful.<\/span>\u00a0<\/span><\/p>\n

A 2018 DigitalOcean\u00a0survey\u00a0found that bootcamp grads heading into a software engineering position felt \u201cmuch better prepared for the real world\u201d than\u00a0four-year\u00a0college grads, by a margin of 61 percent to 36 percent.<\/span><\/p>\n

And that perceived lack of value goes both ways. From an employer\u2019s perspective, Harvard\u2019s report found that degree-holders command an 11-to-30 percent wage premium, but fail to justify that premium in productivity or other outcomes.<\/span><\/p>\n

In fact, the report\u00a0found\u00a0that college graduates filling these positions \u201care costing companies more money to employ, tend to be less engaged in their jobs, have a higher turnover rate, and reach productivity levels only on par with high school graduates doing the same job.\u201d<\/span><\/p>\n

It Can Improve the Lives of Their Workers<\/b>
\n<\/b><\/h2>\n

Certainly, there are plenty of great reasons to pursue a college education. But getting a degree only because it seems like a prerequisite to finding a job isn\u2019t one, and crushing student debt is taking a huge toll on the American workforce.<\/span>\u00a0<\/span><\/p>\n

In total, 44.2 million Americans are now carrying\u00a0student loan debt, and those Americans owe more than $1.48 trillion collectively \u2013 roughly $620 billion more than total U.S. credit card debt.\u00a0Research\u00a0from Citizens Financial Group showed that 60 percent of student debt borrowers can expect to pay off their loans in their 40s, while another\u00a0<\/span>study<\/span><\/a>\u00a0suggested that Wisconsin university graduates take on average 19.7 years to pay off a bachelor\u2019s degree.<\/span><\/p>\n

While tech companies compete to offer their employees the best packages of benefits and perks, there\u2019s certainly something to be said for a workforce who aren\u2019t buried under a pile of debt.<\/span><\/p>\n

Follow the Leader<\/b>\u00a0<\/b><\/h2>\n

Industry trends often start at the top, and when it comes to loosening or dropping degree demands \u2013 to put it simply \u2013 all the biggest companies seem to be doing it.<\/span><\/p>\n

As we mentioned, a recent LinkedIn\u00a0study\u00a0showed that many of the companies listed among its 2019 LinkedIn Top Companies in the U.S. no longer require a degree, including Alphabet (Google\u2019s parent company), Netflix, Airbnb, Facebook, Oracle, Dell, and, of course, Apple.<\/span><\/p>\n

In fact, Apple CEO Tim Cook recently said that about half of Apple\u2019s U.S. employment in 2018 was made up of people who didn\u2019t have a\u00a0four-year\u00a0degree.<\/span><\/p>\n

He stressed instead the need for certain in-demand skills; in Apple\u2019s case, that skill is coding.<\/span><\/p>\n

\u201cAs we\u2019ve looked at the\u2026mismatch between the skills that are coming out of colleges and what the skills are that we believe we need in the future, and many other businesses do, we\u2019ve identified coding as a very key one,\u201d he\u00a0<\/span>said<\/span><\/a>.<\/span><\/p>\n

That certainly makes sense given that Apple\u2019s Steve Jobs famously founded the company after dropping out of college.<\/span><\/p>\n

\u201cOur company, as you know, was founded by a college drop-out,\u201d Cook\u00a0<\/span>said<\/span><\/a>. \u201cSo we\u2019ve never really thought that a college degree was the thing that you had to do well. We\u2019ve always tried to expand our horizons.\u201d<\/span><\/p>\n

By the way, Jobs wasn\u2019t the only tech trailblazer who didn\u2019t hold a degree. The same could be said of Uber\u2019s Travis Kalanick, Dell\u2019s Michael Dell, Facebook\u2019s Mark Zuckerberg, Twitter\u2019s Jack Dorsey, and Whatsapp\u2019s Jan Koum.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A bachelor\u2019s degree is no longer a barrier for entry to work at the world\u2019s top companies. <\/p>\n","protected":false},"author":7,"featured_media":10202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[533,644,1019],"tags":[147,238,151,1020],"yoast_head":"\nWhy Apple (and Other Tech Companies) No Longer Require a Degree | BrainStation\u00ae Blog<\/title>\n<meta name=\"description\" content=\"A bachelor\u2019s degree is no longer a barrier for entry to work at the world\u2019s top companies. 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