In the past, most jobs fell into either the white-collar or blue-collar category. A new category coined by IBM CEO Ginny Rometty, "new collar," has emerged to describe those in professions where employees develop their technical skills through nontraditional educational means. These nontraditional pathways include community college, trade school, internships and even self-study. Many new-collar workers are involved in digital roles such as health care, engineering, technology and software. Where a four-year degree was once required to enter the profession, tech professionals have found that other routes can lead to the same jobs.
Recruiting new-collar team
members will require companies to rethink their hiring practices and broaden their talent pool. Companies are beginning to recognize that not everyone is willing to take out loans to pay for
college when they are still in their teens. Clearly, there is real potential for being saddled with loans for decades to come. The investment does not seem worth it. In fact, the Education Data
Initiative has found a decline of 21% in college enrollment from 2024 to 2025, due primarily to rising college costs.
Technology is evolving rapidly, particularly in the area of artificial intelligence. Employers are hustling to find skilled employees in a workplace characterized by labor shortages. For that reason, employers are willing to drop strict hiring requirements in favor of other training and experience. Employers are also taking a hard look at those candidates with valuable soft skills to help in the hiring process. Soft skills such as a strong work ethic, a willingness to learn and a success-driven mentality are highly valued in today's workforce.
A major change
The Great Resignation from 2020 to 2021, initiated by the COVID-19 pandemic, saw millions of voluntary worker resignations across the country. Many workers did not return to the workplace, citing the need to rebalance their life-work priorities. Years later, companies are still struggling to fill these employment gaps. Businesses understand that they do not have the luxury of time for potential employees to finish their degrees. Instead, companies are learning that people can become proficient without a college education. Forward-thinking businesses are investing in training programs, apprenticeships/mentorships and software boot camps. Self-taught individuals can prove their knowledge through technical interviews.
Hiring managers are the first line of defense in the recruitment process. To become more effective in hiring new-collar workers, companies will need to provide hiring managers with training to implement this new initiative. Managers will need to overcome any bias that non-degreed individuals do not possess the skills to be successful. IBM should serve as a role model for any company considering skills-first hiring. In 2017, IBM brought in a group of seven highly motivated software engineer apprentices. After only a few months, the group proved themselves to be strong performers. It wasn't long before other groups requested apprentices.
Businesses that incorporate skills-based hiring practices will benefit from finding the absolute best talent possible. While a four-year degree is still valuable, the right skills and experience can put your employees on the path to a successful career.