The year is 2014, and Nancy, an experienced human resources professional, is hiring for her company’s new job opening. As she sifts through resumes, one in particular stands out: Mike. Mike demonstrates competencies in all skill areas required for the job, meeting each qualification — except one. Mike did not complete a bachelor’s degree, which is a requirement of Nancy’s company. Yet, Nancy recognizes that Mike is the best candidate for the job based on his breadth of experience outside of a four-year degree program, and is hired for the position.
Fast forward to 2024, where automation is increasingly ingrained in our everyday lives — including hiring. Nancy’s company now utilizes a computerized hiring system to automate the initial evaluation of job applications. The computerized hiring system automatically identifies which job applicants meet the company’s criteria, and when an applicant just like Mike comes along now, the application is automatically routed to a digital trash bin.
Because of this degree-based discrimination, known as the “paper ceiling,” applicants like Mike miss out on job opportunities for which they are highly qualified, and companies miss out on talent offering the skills needed to succeed in the workplace — all due to a singular metric rigidly carried out by an algorithm.
In an era defined by unprecedented technological advancements and evolving industry landscapes, the traditional metrics of qualification are undergoing a necessary transformation. As we navigate this shifting paradigm, skills-based hiring has emerged as a way of leveling the playing field, and presenting opportunity to more Americans with different educational backgrounds.
The concept is simple yet revolutionary: Evaluate individuals based on their skills, competencies and experiences rather than fixating on a piece of paper. However, despite the clear benefits of this approach, a significant hurdle persists: automated hiring systems that systematically reject candidates lacking a bachelor’s degree.
According to a 2021 study, more than 90 percent of employers reported using a Recruitment Management System (RMS) to automate the screening of job applicants, and nearly half reported using education level as a filter. Yet, approximately 90 percent of employers agreed that qualified candidates are excluded from consideration because their resumes do not match the exact criteria of the RMS. This results in qualified workers being locked out of good jobs, and it pressures Americans to take on significant debt for degrees they may not need.
When designed with rigid criteria, the algorithms of automated hiring systems inadvertently perpetuate biases and overlook a vast pool of qualified individuals. They become a barrier to entry, barring talented and capable candidates from even being considered for roles where their expertise could be invaluable. It’s a systemic flaw that stifles not just individual opportunities, but also hampers the competitiveness of our workforce.
To address this growing issue, we introduced the bipartisan Opportunity to Compete Act, which can play a pivotal role in rectifying this imbalance. Our objective is simple: to ensure fair access to job opportunities for all qualified individuals. By empowering job applicants to substitute relevant experience for bachelor’s degrees in automated hiring systems, we can lay the foundation for a more transparent and meritocratic hiring process and establish a more fair process for evaluating applicants based on their skills and experience.
This will not impact small businesses, who are exempt from our legislation’s compliance protocol, but rather ensures larger companies give more opportunity for a broader scope of workers to attain gainful employment.
This legislation isn’t about devaluing degrees but about valuing different pathways to skill acquisition; it’s about broadening the scope of assessment, acknowledging that brilliance and aptitude exist beyond one educational pathway. Roughly two-thirds of Americans do not have a bachelor’s degree, and in order to bolster our workforce, economy and global competitiveness, we must recognize the value of those who are Skilled Through Alternative Routes (STARs) — whether it be via community college, career and technical education (CTE), military service, apprenticeships or other work-based learning.
We both hail from the Midwest, and we know — as do many of our neighbors — that a college degree is not a necessity for a meaningful and productive career. Many folks from our part of the country started work with a high school degree, or an alternate form of education that did not include attaining a bachelor’s degree. We believe that the modern hiring process should reflect that different people with different educational backgrounds can still provide immense value to the workforce.
Skills-based hiring isn’t a mere trend, but a necessity dictated by the demands of a rapidly evolving job market. It’s a strategic move that enhances innovation, levels the playing field and bolsters the adaptability of our workforce. It’s about recognizing and valuing individuals for their unique proficiencies, regardless of the academic paths they’ve taken.
The time is ripe to tear down the paper ceiling imposed by narrow definitions of automated systems and embrace a future where skills, not degrees, are the currency of success in the workforce. Let us champion legislation that ensures every qualified individual has a fair chance to showcase their abilities in an environment that values talent above all else.
Raja Krishnamoorthi represents the 8th District of Illinois and John James represents the 10th District of Michigan.