Byron Auguste, co-founder of Opportunity@Work, shares his perspective on the U.S. labor market, highlighting the overemphasis on bachelor’s degrees and the need for a shift towards skills-based evaluation.
He also discusses the potential of technology in training, the importance of conscientiousness in retraining, and the need for a more inclusive labor market.
The Real Value of a College Degree
While the college wage premium is stable, there’s a significant overlap in the distribution of actual skill, competency, IQ, and conscientiousness.
The skills gap is largely a result of the opportunity gap, and most human capital is developed on the job, not through formal education.
The Potential of Technology in Training
Technology can enhance training by providing diverse ways to deliver and engage with information.
Learning digital tools is not fundamentally different from learning physical tools, and these digital tools can be accessed and learned from anywhere.
Learning from the German Model for Vocational Training
The German model for vocational training, which provides multiple pathways of education to employment, is a positive approach that the U.S. could learn from.
This model doesn’t require a bachelor’s degree but offers rigorous technical education and a pathway into well-paid jobs.
The Role of Conscientiousness in Retraining
Conscientiousness plays a more important role than IQ in retraining.
Learning requires acknowledging what you don’t know and paying attention to details, which are traits associated with conscientiousness.
The Changing Perception of College
The traditional perception of college students as young individuals without major responsibilities is outdated.
Today, most college students are working learners with significant responsibilities, such as children.
The Limitations of Degree-Based Screening
The current labor market often excludes potential candidates based on the lack of a bachelor’s degree, rather than assessing their actual skills required for the job.
This approach creates opportunity gaps and contributes to a skills gap in the American workforce.
The Need for Skills-Based Screening
Employers should focus on screening in candidates based on their skills, rather than excluding them based on their lack of a degree.
By posting training modules and assessing who can complete them, employers can identify candidates with the necessary skills, thereby closing opportunity gaps.
Improving Police Quality through Culture Change
The quality of police in America can be improved by changing the organizational culture within police departments.
As organizational cultures tend to replicate themselves, a shift in culture could lead to significant improvements.
The skills gap is a result of the opportunity gap that we’ve imposed, not entirely, but the implications for the college wage premium is that there’s three things there’s signaling, there’s learning in college, but there’s also the opportunity gap. – Byron Auguste
The ‘Sheepskin Effect’ and Market Failure
The ‘sheepskin effect’ – the wage difference between those who finish college and those who don’t – is a significant market failure.
However, some businesses are capitalizing on this by hiring, training, and providing outsourced services to companies using individuals who don’t have degrees but are excellent problem solvers.
Challenging the College Degree as a Measure of Conscientiousness
Many people who don’t finish college do so due to economic and social conditions, not because of a lack of conscientiousness.
The best measure of conscientiousness for an employer is how a potential employee performs in their current job.
You should screen in based on skills, not screen out based on pedigree. That’s the fundamental issue. – Byron Auguste
The Value of Hybrid Skills and Creativity
Combining different disciplines can lead to innovative ideas and solutions.
A diverse workforce fosters creativity and is valuable for problem-solving.
Attracting Men to Nursing and Eldercare
Increasing wages and creating more pathways into the fields of nursing and eldercare could attract more young men into these professions.
Currently, these fields are often overlooked due to low pay, particularly in eldercare.
