Could Skills-Based Hiring Ease the Higher Ed Enrollment Crisis?

Colleges and universities are facing a looming enrollment disaster as more Americans question the value of higher education (due to both its cost and quality) and an aging population limits overall student enrollment. Since 2010, college enrollment has decreased by nearly 10 percent, and institutions have been closing at a rate that has gotten as high as one per week.

This problem has only been exacerbated by recent developments like the FAFSA disaster, campus antisemitism, and the prioritization of divisive politics over academics by many faculty members and administrators. However, a recent trend, despite being viewed as a threat by many in higher education, may in fact present an opportunity.

Since 2020, the federal government and at least 20 states have removed college degree requirements from public sector jobs, and many private employers are now following suit. Congress is also considering the ACCESS Act on a strongly bipartisan basis. Authored by Reps. Nancy Mace (R-SC-1) and Raja Krishnamoorthi (D-IL-8), the bill would eliminate degree requirements for federal contractors, which, among other virtues, would benefit veterans transitioning from active duty.

Although many colleges and universities may see the trend away from degree-based hiring as yet another potential hit to enrollments, they can—and should—take advantage of it.

For employers looking to make genuine egalitarian headway, there is still much work to be done beyond simply removing degree requirements. Before long, they will be actively looking to bring on a meaningful number of candidates who have acquired knowledge, skills, and abilities through other means. Smart colleges and universities will look to be part of this solution.

Degree-based hiring is not just a barrier to opportunities for those without a degree; it’s also a poor method of identifying qualified candidates for jobs. Degree requirements set by employers are often agonistic about a candidate’s program of study, and, since many degree programs are not career-focused, a student may earn a degree without having learned anything about their future job (despite their credential being their primary qualification for it).

In response to this disconnect, institutions of higher education should work with employers and industry associations to build short-term bridge programs to careers. Although these would not be full degree programs, they could still be significant enough to support institutions’ enrollments, potentially bringing relief to some schools in the midst of enrollment crises. In designing such programs, institutions should consider a few points.

First, make programs affordable and accessible for adult learners and other non-traditional students. Institutions will likely benefit from working with high-quality partners who can inform curricula with skills employers are demanding and design coursework that is maximally accessible to all types of students. This would likely mean offering programs in online and competency-based formats where possible.

Second, ensure such programs are for-credit. Faculty governance may make this difficult, but it is worthwhile for institutions if they hope to generate satisfied customers who may come back for another credential or stack their first credential on top of a degree program.

Third, ensure programs can qualify students for many jobs, not just one. Students may be receiving a university-branded credential, but it is far more important that they also receive one that is widely recognized by employers. Institutions are used to relying on their own brand or that of a single private-sector partner. However, buying into a larger marketplace for skills can allow institutions to reach a much larger market and benefit many more students.

Institutions struggling to stabilize their enrollments need to do more than hope for ever-greater federal and state subsidies that are unlikely to materialize. Instead, they should embrace skills-focused ecosystems and identify their competitive advantages within them. By doing so, they may not only be ensuring their own future prosperity, but will be responding effectively to a rapidly growing demand that is not currently being met.

The post Could Skills-Based Hiring Ease the Higher Ed Enrollment Crisis? appeared first on American Enterprise Institute – AEI.