How corporations can drive innovation in higher ed — and why they should

It was once a young adult’s “golden ticket to the American dream” and a key indicator to businesses that a candidate was worth hiring. But in recent years, its true value in modern society has been brought into question. 

I’m talking, of course, about a four-year college degree. 

As the American workforce evolves, corporations have a tremendous opportunity to drive the future of higher education to align students, schools and workplaces toward a set of shared goals and competencies.

Businesses drive innovation in higher ed

Businesses have always played a critical role in catalyzing innovation in higher education. The Industrial Age drove significant educational reform in the 19th century, influencing the rise of professional schools like MIT, where students could earn specialized master’s degrees to excel in professional work environments. 

In the mid-20th century, the G.I. Bill of 1944 and the Higher Education Act of 1965 helped bring community colleges into the mainstream and established the two-year associate’s degree as an alternative to a four-year bachelor’s degree. These developments provided a more streamlined path for individuals to enter the workforce with foundational skills. 

However, despite the establishment of alternative credentials, a “traditional college education,” as represented by a bachelor’s degree (and — even better — a master’s degree), has remained the default signal of a potential employee’s competency.

And while there is undeniable value in a traditional college education, businesses have the opportunity to reshape higher education once again to align better with their most current and pressing needs at the height of the Information Age. Today, a “traditional college education” isn’t necessarily the optimal pathway for building a successful career. 

First, corporations must dig deep to identify where their business practices are out of alignment with their actual business needs. Then, they can encourage higher education in the desired direction.

Redefining corporate hiring practices 

Corporate hiring practices are an obvious area where businesses still hold onto the status quo. If your company’s job descriptions list a bachelor’s or master’s degree as a requirement, it may be time to rethink how you evaluate and filter candidates. 

It’s true that a college degree indicates a measure of persistence, resilience and a willingness to commit to a significant undertaking. But how much does it actually tell you about a candidate’s competency?  

There are other, arguably, better ways to assess a candidate’s potential for success in a role that have nothing to do with which degrees they do or do not possess. A degree can’t possibly paint a complete picture of someone’s learning, experience and qualifications. Apprenticeships, internships and entrepreneurial activity can often provide greater insight into someone’s potential as an incoming employee.

For instance, an employee who has gained experience and education by working at a particular company for several years could have just as much to offer in a more senior role as an outside candidate with a fresh new master’s degree. 

Requiring both bachelor’s and master’s degrees is also at odds with diversity, equity, inclusion and belonging initiatives, as obtaining a traditional degree requires a certain degree of privilege that not everyone can access. 

Companies like Kellogg’s are leading the way in dropping degree requirements for most jobs because they recognize that “having a degree does not always reflect the contribution someone can make.” If more corporations follow in their footsteps, higher education will have no choice but to respond. 

Other opportunities for corporations to align with higher ed 

There are plenty of opportunities for corporations to get better aligned with higher education. 

To begin, there should be more collaboration to incorporate work experience into educational programs. Work experience is critical to helping an individual develop and demonstrate competency in a specific area. Corporations might consider aligning with schools to incorporate work experience (e.g., internships, apprenticeships) into learning curricula.

One of the most effective ways corporations could use their influence is by literally making their voices heard on higher ed boards. Many business leaders hold important roles on college advisory boards, and those institutions value input from the business sector. By identifying what they most need from higher education, and by being transparent about those needs, corporate leaders can use their board positions to influence decision-making and drive meaningful change. 

Higher ed will always have a place

Higher education will always have a place in fueling the American workforce. Colleges and universities are critical hubs for education. But their role will have to evolve to keep pace with the current workforce environment. 

As artificial intelligence continues taking over tasks once assigned to humans, soft skills like communication, critical thinking, adaptability and problem-solving will become increasingly important. Higher education could be instrumental in providing those learning experiences. 

As learners and companies alike recognize alternative pathways for learning, schools will have to expand their focus to include viable alternatives to a four-year degree, such as credentials, microcredentials and corporate learning and development.

If companies align their internal practices to reflect the true value of higher education, and if they consistently convey that message back to the higher ed community, they can create synergy where everyone — schools, businesses and, importantly, students — succeeds.