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Which sectors are shifting towards a skills-based hiring model?
As organizations in various sectors revisit their requirement for college degrees, they are turning their attention to hiring candidates with the right skills rather than focusing on qualifications. It’s important to recognize that no two companies are alike, and so hiring practices may vary significantly depending on roles. This diversity in hiring strategies underscores the importance of being able to dive deeper and understand how different sectors and companies approach recruitment currently. By analyzing job postings without qualifications across four key sectors: information technology, healthcare, communication services and consumer discretionary (non-essential goods and services), we can gain a clearer understanding of the evolving landscape and the trends that are shaping the US job market today.
Salaries in IT are higher for roles without qualification requirements
Jobs without qualification requirements in the IT sector pay more than those with qualification requirements, research from WilsonHCG’s talent intelligence platform, Claro Analytics, has revealed.
In March, the average advertised salary for jobs without qualifications in this sector was $149,315, which was $3,791 more than the average salary of $145,524 for jobs with qualifications. Interestingly, only 23.6% of job postings did not require formal qualifications in the IT sector.
Apple, Oracle and Palo Alto Networks were among the companies that opted not to include qualification requirements in some of their job postings in March, which isn’t surprising when you consider the value of taking a skills-based approach. These organizations predominantly offer roles in customer service, sales, software development, and technical support, which often value practical skills and hands-on experience over formal education.
Job postings without qualifications in the Information Technology sector
Almost a quarter of job postings in healthcare don’t require qualifications
In the healthcare sector, 21.9% of job postings did not demand formal qualifications, marking it as the sector with the lowest percentage of such postings. A large majority of these postings come from CVS Health Corporation, with other companies like Thermo Fisher Scientific Inc., Optum, Becton Dickinson and Co, and Elevance Health also actively hiring for such roles. These organizations predominantly offer roles in retail, operations and pharmacy, which often value practical skills and hands-on experience over formal education.
The salary difference between jobs with and without qualifications in the healthcare sector is substantial. On average, jobs that require qualifications pay approximately $30,319 more per year. Specifically, in March, the average advertised salary for jobs without qualifications in this sector was $37,440, compared to $67,759 for jobs with qualifications.
Job postings without qualifications in the Healthcare sector
Almost 70% of job postings in the consumer discretionary sector don’t include qualification requirements
The consumer discretionary sector stands out with the highest percentage of job postings not requiring qualifications. As of the end of March 2024, 69.5% of job postings in this sector did not require formal qualifications. Companies leading in this category, such as McDonald's Corporation, Dollar General Corp., Wendy's, Pizza Hut, and AutoZone, Inc., are primarily offering roles in food service, retail and delivery. These roles are often entry-level and mid-level positions that provide on-the-job training and value skills such as customer service and time management.
The salary difference between jobs with and without qualifications is notable. On average, jobs that require qualifications in this sector pay approximately $4,630 more per year. Specifically, the average advertised salary for jobs without qualifications in the consumer discretionary sector was $35,360, compared to $39,990 for jobs with qualifications.
Job postings without qualifications in the Consumer Discretionary sector
40% of roles in the communication services sector don’t require formal qualifications
In the communications services sector, 40.8% of job postings did not require formal qualifications. This sector is dominated by companies such as AT&T Inc., T-Mobile US, Inc., Cricket Wireless LLC, Spectrum, and Live Nation Entertainment, Inc. These organizations primarily offer roles in retail sales, field services, customer service and store management and typically prioritize practical skills and on-the-job training over formal education.
The salary difference between jobs with and without qualifications in the communications services sector is substantial. On average, jobs that require qualifications pay approximately $30,000 more per year that those without. The average advertised salary for jobs without qualifications in this sector was $54,714, compared to $103,794 for jobs with qualifications.
Job postings without qualifications in the Communications Services sector
How can organizations remain competitive?
To stay competitive, organizations must consider being more flexible with qualifications and instead, take a skills-based hiring approach. Employers that don’t require formal qualifications and focus on skills, experience and the potential to upskill will attract a much wider range of candidates. Rising skills shortages, aging workforces and low birth rates have pushed skills-based approaches to the top of the priority list (and rightly so!).
It’s not just about taking a skills-based hiring approach either. Organizations must invest in internal training to enable successful upskilling. Apprenticeship and/or mentorship programs can help less experienced workers learn from seasoned professionals, creating a culture of continuous learning and development.