Are Degrees Still Important to Employers?

The traditional path to a well-paid office job was clear: get a university degree. Famously calling for ‘education, education, and education’, Tony Blair set a goal of half of school leavers attending university in 1999. However, with 52% of school leavers now attending university and Tony Blair’s goal achieved, are degrees still important to employers?

“Education, Education, and Education”
Tony Blair

Recruitment firm Hays looked at this question and found that 45% of employers find having a degree is not important. Additionally, only 16% of employers view a university education as essential. It appears that the most important factor to employers is the willingness to learn new skills, not applicants’ formal education. 73% of employers said they value a candidate’s willingness to learn more than their existing skillset. What’s more, four in five employers said they would hire an underqualified applicant and upskill them for the role. 

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Some people are even questioning whether the skills being learned at University are important to the job market. Conservative MP Tom Hunt pointed to the need for more practical education and less academia, stating “Possibly too many people have gone to university over the last few years”. It appears, there simply are not enough jobs for so many graduates. One in three graduates is not in ‘graduate employment’ five years after graduating, meaning a degree is not needed for their role. So how have employers adapted to get the skills they need in their team?

Higher Apprenticeships

The solution for many employers seems to be higher apprenticeships. Higher apprenticeships are defined as practical education at FHEQ qualification levels 4 to 7. For reference, a bachelor’s degree is level 6, and a masters level 7. The number of higher apprenticeships started last year reached 112 900, a 6.2% increase on last year.

This path of education has been praised as cheaper for those learning, as they can earn and learn at the same time. Meanwhile employers can benefit by directly teaching what is needed for the job. Furthermore, employers can expect significant financial support when training staff this way. Government funding of up to £27, 000 is available for apprenticeship schemes and the apprenticeship levy for employers was reduced from 10 to just 5% in 2019.

So are degrees completely unimportant to employers these days? Of course not. For some jobs, such as law or medicine, a degree is a requirement. Additionally, school leavers should not rule out studying. Graduates on average can still expect to earn over £100k more over their lifetime, and Russel group graduates even more.

However, when recruiting, employers should carefully consider if a degree is really necessary for the role. Employers may also wish to consider offering higher apprenticeships to solve recruitment difficulties. Please get in touch if you need support in setting up an apprenticeship for your business, attracting suitable apprentices, or addressing recruitment and staffing issues.

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