How effective is an undergraduate degree?

It has long been accepted that the key to a successful career path is a strong undergraduate degree.

In recent times, that trend has started to change, with employers no longer placing the same emphasis on a largely theoretical university qualification that may have little practical learning.

In fact, employers are starting to swing the other way according to a recent survey, looking at work experience as far more relevant.

“When it comes to hiring graduates, employers should look for potential as well as experience,” Sally McKibbin, Indeed’s career coach, said. “Owing to the challenging circumstances in which today’s graduates were forced to complete their studies, the current graduate is likely to possess a high level of adaptability, grit, and determination.”

There is also a good chance that they’re going to be natural problem-solvers and creative thinkers, she said, and their tech skills are likely to far surpass their older peers.

“As a result, although they may not have relevant industry experience, these graduates will come equipped with the skills and capabilities required to develop into valuable assets to the business.”

Employers cite competitive advantage of work experience

The Graduate Outcomes survey by Indeed revealed that 68% of employers and 61% of graduates believe that undergraduates degrees are no longer enough to obtain a good job, with 59% of employers more likely to hire university graduates with work experience.

“I wouldn’t say there’s anything ‘bad’ about an undergraduate degree, and indeed, many employers still require candidates to hold at least one,” McKibbin said. “However, in a highly competitive job market, it’s candidates who possess not only a degree but also relevant work experience - whether via internships or work placement - who have the ability to stand out.”

Almost four-fifths of employers (79%) believe having this experience gives graduates a competitive advantage and enhances employability.

This is hardly surprising that employers want graduates who can start being proactive from day one, and can learn on their feet and think practically.

“University grades are of course significant, but it’s important for employers to recognise that test scores and averages won’t always indicate a graduate’s potential,” McKibbin said. “Some graduates may have exceptional grades but struggle when it comes to putting their knowledge into practice. The same is therefore true in reverse - others may have less-than-stellar grades but thrive in the workforce where they can learn from others and apply their knowledge in real-time.

A high-potential candidate is one who demonstrates resilience, adaptability, and passion, she said.

“They are fast learners who ask questions, receive feedback well, show genuine interest, and whose values and goals align with the role and organisation.”

Hiring people based on merit, not credentials

Companies such as Ernst & Young eliminated the need for a graduate degree back in 2015, while Penguin Random House, PwC, Ogilvy Group, Apple, and Google, have all relaxed degree qualifications.

They are choosing people based on merit, rather than credentials, often by assessing candidates with psychometric testing or other performance-related tasks.

“The big-ticket question is how long it takes to train your new hire; therefore, the cost associated and when you can start to see a return on the investment,” Roxanne Calder, founder of EST10, said.

“It can be hard to gauge as graduates without much experience are effectively unproven entities. This is why asking the right questions and recruiting graduates with some work experience, even if only casual work, is advantageous.”

Graduates offer a different skill set with researching, writing, critical thinking, and analytical skills acquired by the nature of studying, she said.

“Extracurricular activities and work experience develop a softer skillset which is much needed in the workplace for cohesive teams.”