Education, Experience, and Tomorrow's Workforce

By Mark Fisher

May 2007

We live in a society today that wants it all and wants it now.  We all have been frustrated at one point or another over trade-offs, ranging from what to have for breakfast to what bells and whistles to purchase on our next vehicle and even to our hiring practices within the work environment. 

 

From an executive recruiter's point of view in working with both clients and candidates throughout our industry, we see our clients wrestle with the trade-off dilemma daily, with very justifiable arguments on each side. 

So, what is making these decisions increasingly difficult to address?  In many cases, employers seem to be holding onto hiring practices of the past and refusing to accept the realities of the employment market today.

 

According to an April 2007 Wall Street Journal article, there is an ever-increasing percentage of non-degreed people entering the workforce for the first time in many years. The overall numbers of both men and women entering the workforce has remained constant, and the demand for degreed talent is on the rise. However, demand is not solely the issue as it was over the past generation, but the shortage now has shifted to the supply side as well.  The article states, "the shortage is evident from this fact: Employers are paying the typical four-year college graduate [without graduate school] 75% more than they pay high-school grads.  Twenty-five years ago, they were paying 40% more."  In this case, the employment market reacts no differently than the stock market regarding supply and demand.  Well-educated people are continuing to demand higher wages, which is a reality you must face as you work to attract the talent you want for your organization. 

 

We're back to the trade-off dilemma again. To attract the talent that your board of directors demands you have within your company, you need to be willing to pay the price.  However, there are other alternatives. First and most obvious, consider talent that has the experience within your channels of distribution who may be a few credits short of a degree, but who has a proven track record of success. Second, look for developmental candidates within your own organization who have been successful and who have transferable skill sets. Third, develop programs that will encourage your developmental candidates, both internal and external, to return to complete their degrees. And finally, put the programs in place to retain them once you have helped them move up the career path. 

 

The new reality is that tomorrow's workforce is not waiting for you.  They are on the move, savvy to opportunities, and from the trends we see in the global labor force, they will be in the driver's seat for many years to come.