If Walmart, known for its innovative business models, is finding success in a new education model, other companies would be wise to take note.
Earlier this year, the retail giant provided a report card on its Live Better U education program. Started in 2018 and viewed as an education benefit, it has turned into a pathway to developing supply chain professionals.
The numbers are impressive. The company has provided over 126,000 associates funding to earn business-related degrees from universities such as the University of Arkansas, Purdue Global, Bellevue University and Southern New Hampshire. These degrees include those in supply chain, transportation and logistics management.
Through 50 options, the company also offers short-term certificates, which was the expressed preference of its associates. “The quicker they learn new skills, the faster they can move up,” the company said.
The emphasis on skills as the basis for career success is gaining popularity and has turned into skills-based hiring. Korn Ferry noted that this type of hiring is a top trend this year. And a Gartner survey found that companies are “increasingly shredding the paper ceiling – the invisible barrier workers without degrees face – and embracing skills-based hiring, even for some corporate jobs long considered degree-dependent.”
This thinking is so pervasive that a survey from Intelligent.com released in July 2024 discovered that 33% of companies eliminated bachelor's degree requirements already this year. Furthermore, 25% of companies will eliminate bachelor's degree requirements by 2025.
Why are they doing this? The respondents said that it reflects their desire to prioritize skills over degrees. And 75% said removing requirements has been beneficial for the company.
The supply chain sector is taking advantage of this new way of thinking as well. A survey from CSCMP found that over the past seven years the number of students achieving a technical or two-year degree in supply chain has more than doubled. And the timeframe has moved from extended certifications to shorter, more specialized courses in areas such as procurement, strategic sourcing, and inventory management.
To keep the pipeline going, companies are forming partnerships with technical and non-technical education institutions. They are also reaching out to high schools, as the manufacturing sector has done for years. One example is a program at Macy’s which is aimed at recruiting high school graduates for supply chain jobs.
The enlightenment of employers is aligning with the new attitudes of younger workers. A Pew research survey in May 2024 found that 54% of workers ages 25-34 do not have a four-year college degree.
While our education model won’t change overnight, with most companies still requiring four-year degrees, it’s nice to see a more expansive view of education on the path to career success.
