Skills vs. Diploma: Which do you look for in an applicant?
Will You Hire Someone Who Is Not a College Graduate?
As the world reels from the devastating effects of COVID-19, various countries have also begun their recovery phases as they acknowledge the ramifications of the pandemic on the economic sector. The same is true in the Philippines, where the pandemic has grown far from simply being a public health problem; it has inflicted a huge setback on our national economy and livelihoods. According to a COVID-19 Job Report by SEEK Asia, 87% of Filipinos say their jobs have been affected by the pandemic. Moreover, 43% said they stopped working during the community quarantine, while 17% have been permanently retrenched.
As more and more Filipino workers find themselves jobless or face pay cuts, Albay representative and House Committee on Ways and Means chair Joey Salceda encouraged the government to focus on skills development instead of placing premiums on college diplomas. This will allow low-income earners and unemployed individuals to find ways to support themselves during these difficult times.
In his proposed reforms under the “New Deal for a New Economy,” the congressman made a case to focus on the Technical Education and Skills Development Authority (TESDA) and on training workers for new skills that will help restart the country’s economy. Salceda added that “skills are more important than a diploma.”
Do employers share the same sentiment? Various HR practitioners weigh in on whether companies are ready to prioritize high-skilled workers over college diploma holders.
Skilled workers vs. college degree holders: Who is the better hire?
In our partner community Philippines HR Group, hiring managers and human resource practitioners share their thoughts on whether their companies are open to prioritizing skills over college degrees. While there are those that still feel degrees are important requirements for certain professions, many hirers agree that college diplomas do not necessarily equate to competency.
Lynn Ligon Libo-on, who does consultancy work for sales training and HR development, says, “In one of my previous employers where I headed the sales team, the HR and I changed the classification for new hires with a college degree as preferred, not required. We had cases where a college undergraduate performed much better than a degree holder. Attitude, I believe, is more important because those who are open to [learning] will quickly acquire the skills that [they need] to move up.”
Other hirers also point out that industries like the BPO and IT sectors have already been putting a premium on skills. In certain fields where skills can be accurately and objectively measured during the screening process, a college degree will not be necessary in ensuring how competent a candidate will be. In the BPO industry, for example, talents are screened based on their communication skills and their ability to follow instructions—qualities that are not exclusive to college graduates.
So does this mean skilled workers make better employees than degree holders? Not necessarily.
Jun Mendoza, former senior vice president of Human Resources and Administration at CTBC Bank (Philippines) Corp., relates, “I had an almost equal number of interactions between college graduates and non-college graduates in my HR career, and there were brilliant and lousy job candidates in both categories.” However, he further stresses that although they can be essential requirements, diplomas do not determine how well an employee will perform years later. “That’s exactly how companies treat the college diploma—they are of the view that good in academics means good at work, even after many years have passed. It could be, but we know very well, it may not. It does not mean you do not value education—it just means you also value the skill of a job candidate without that education. So there is wisdom in assessing job candidates for skill instead of just using a piece of paper as a basis. I have always treated diplomas (mine included) like an old medical certificate or NBI clearance. They have [long expired].”
Are companies ready to make the shift?
While HR managers are open to considering one’s skills and competency with or without a college degree, how ready companies are to assess these candidates is another matter.
Edwin Ebreo, CEO of ExeQserve, an HR and org development consulting company, states, “I think the reason why the IT industry can easily adopt this is because they have a means of determining if the skills are present through technical screening. In other industries, HR is not ready with their tools to assess competencies.”
While the BPO and IT industries may have defined processes on how to screen their candidates, employers looking to diversify their talent pool will have to come up with their own system. They need to identify the traits they seek in candidates and how to best assess them.
Is the company looking for someone who is good at problem solving? Who can follow instructions well? Include screening tests that identify these competencies in your hiring program to systematize your candidate assessment process.
The proposal to prefer skilled workers over college graduates is not a one-size, fits-all solution. Both types of candidates have their respective pros and cons. Ultimately, it will all depend on the needs of your organization and how you plan to seek out these competencies in order to find the perfect match for your company.
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About SEEK Asia
SEEK Asia, a combination of two leading brands JobStreet and JobsDB, is the leading job portal and Asia’s preferred destination for candidates and hirers. SEEK Asia’s presence span across 7 countries namely Hong Kong, Indonesia, Malaysia, Singapore, Thailand, Philippines and Vietnam. SEEK Asia is part of the Australian Securities Exchange-listed SEEK Limited Company, the world’s largest job portal by market capitalization. SEEK Asia attracts over 400 million visits a year.
About SEEK Limited
SEEK is a diverse group of companies, comprising a strong portfolio of online employment, educational, commercial and volunteer businesses. SEEK has a global presence (including Australia, New Zealand, China, Hong Kong, South-East Asia, Brazil and Mexico), with exposure to over 2.9 billion people and approximately 27 per cent of global GDP. SEEK makes a positive contribution to people’s lives on a global scale. SEEK is listed on the Australian Securities Exchange, where it is a top 100 company and has been listed in the Top 20 Most Innovative Companies by Forbes.