In New York City, upwards of tens of thousands of proficient individuals are devoid of gainful employment opportunities that could propel them and their families out of the looming clouds of impoverishment. This is largely due to the common practice of degree-based hiring, which locks out potential employees who fail to meet the sometimes unnecessary degree prerequisites for jobs that could very well be performed based on skill.
Such hiring practices only serve to further racial and economic disparities in the city. The key to rectifying this lies in widespread adoption of skills-based hiring, a method that sees employers overlook degree requirements and instead focus on an applicant's skills set.
For the 2.3 million New Yorkers without a college degree, this hiring approach could make a noticeable dent in unemployment statistics by availing numerous well-paying job opportunities that were previously unattainable due to lack of specific qualifications.
Leveraging a skills-first approach in hiring could greatly benefit Hispanic and Black New Yorkers, who currently account for only 25% and 30% respectively of the city's populace with bachelor's degrees. Contrastingly, 68% of white New Yorkers possess at least a bachelor's degree.
Decoupling employment eligibility from possession of college credentials could open doors to rewarding careers that workers could ably manage. The hiring process as it currently stands tends to omit a lot of workforce potential due to inadequate evaluation of skills.
Opposite to common misconceptions, the skills-based hiring approach is applicable even in "white collar" industries such as technology, finance, healthcare, and government, and not just in labor or clerical jobs.
There's a slow but steady trend towards this practice, with prominent companies like IBM, Accenture, Google, Amazon, Ernst & Young, Penguin Random House, Starbucks, and healthcare startup Ovia Health having dropped the bachelor’s degree prerequisite for certain job positions. This shift has led to a surge in skills-based job postings, from 15% in 2021 to a present 19% nationally.
However, in New York, the adoption rate of this revolutionary hiring method remains slow. A greater percentage of private sector companies, as well as city government, must spearhead the shift. This move could open a multitude of public sector posts to New Yorkers who have been side-lined in the job market.
There is precedence to follow, seeing as Maryland, Pennsylvania, Utah, and Alaska have already eradicated the four-year college degree requirement for multiple state government jobs. As a result, these jobs are now accessible to non-degree holders with relevant experience or training.
New York’s Mayor Adams has an opportunity to pioneer a similar shift in the city. His leadership could be instrumental in resolving the current worker shortage by opening up skills-based hiring opportunities. Additionally, this could act as a validation point for the practice to other employers who may be unfamiliar with it.
Significantly, scrapping degree requirements not only benefits potential employees. Employers stand to gain from a larger, diverse, and skill-rich talent pool that promises better job performance, improved retention, and increase in eligible workforce.
The time is ripe for a widespread adoption of skills-based hiring in New York City. Embracing this method could be the key to unlocking countless job opportunities for New Yorkers, hence, fostering economic growth and equity. Bowles is the executive director of the Center for an Urban Future.
