By

Catherine Ngo

Content writer, presenter and podcaster

We know "blue collar" workers as traditional trade workers and "white collar" workers as those with university degrees. But what about those smart and skilled individuals who chose not to pursue a degree? They fall into a category known as "new collar workers."

The term "new collar" is relatively new and encompasses a significant workforce segment. These highly skilled professionals without degrees are often just as capable and successful as their counterparts with degrees. Bill Gates and Steve Jobs are notable examples of new-collar workers who succeeded in their respective fields.

New collar jobs are emerging in various industries, offering exciting opportunities for skilled individuals with different educational backgrounds. These jobs value talent, skills, and experience over formal degrees, opening new avenues for career growth and advancement.

As the world of work continues to evolve, the concept of new-collar workers is gaining recognition and becoming increasingly relevant. New collar workers are valuable to organisations seeking talented individuals who can contribute to innovation, creativity, and problem-solving.

A Shift in Education and Employment Trends

The number of "new collar" jobs and workers has significantly increased in recent years. Several factors, including economic considerations and changing educational landscapes, contribute to this trend.

Many young adults today are discouraged by the rising costs of college and the potential burden of student loan debt. As a result, a significant portion of the working population lacks college degrees. 

The number of Australians enrolled in bachelor degrees has fallen 12% in less than a decade. In contrast, trade school students who complete their degrees and certifications in a shorter time frame are more likely to secure employment immediately after graduation than university students.

The realisation that incurring tens of thousands of dollars in debt for a degree does not guarantee a straightforward path to financial security has also played a crucial role in the emergence of the new-collar worker trend. More importantly, not having a traditional college degree does not necessarily disqualify individuals from jobs that previously required such credentials.

The rise of new-collar jobs and workers reflects a shift in educational and employment patterns. With a strong focus on practical skills and hands-on training, these jobs provide many individuals with an alternative pathway to rewarding careers.

Benefits of New-Collar Jobs

Reduced Training Costs for Employers: Employers can train employees for specific roles more efficiently, making it easier to fill positions. Degree-less individuals can pursue training in their desired fields, especially in our rapidly changing world.

Accessible and Cost-Effective Upskilling Options: Continuing education courses, online platforms like LinkedIn Learning, and certification programs provide affordable upskilling opportunities compared to a university degree. These options allow new-collar workers to acquire relevant skills and gain a competitive edge.

Enhanced Diversity, Equity, and Inclusion (DEI) in the Workplace: Hiring individuals without degrees increases the diversity of backgrounds, experiences, and perspectives in the workforce, leading to a more inclusive and equitable work environment.

Aptitude and Productivity Contributions: New collar workers possess practical and applicable skills directly relevant to their jobs. They often bring a strong desire to learn and a humble attitude, contributing to their productivity and overall performance.

Hiring new collar workers 

There are three ways to find, recruit, and hire new collar workers effectively:

Review job descriptions and eliminate degree requirements or preferences unless a degree is necessary for the role. In such cases, specify the specific degree needed. Instead of relying solely on degrees, ask for alternative ways to acquire the required knowledge and skills. For instance, while many software engineers hold a computer science degree, a candidate can develop those skills through a coding program, making a degree unnecessary.

Emphasise the requirement for particular job-related skills. List these as the essential criteria for the position. Focus on the specific aptitudes that align with your organisation's values, such as collaboration and professionalism, rather than listing desirable qualities that can be assessed during interviews.

Assess skills and abilities during interviews. Evaluating candidates based on their capabilities rather than their educational background or work experience will help you identify individuals well-suited for the role and your organisation.

Helping new collar workers to succeed and beyond

To support the success of new-collar employees, organisations should consider the following strategies:

Offer Opportunities for Continuous Learning and Growth: Provide diverse training opportunities such as communication, leadership, business decision-making, and feedback. These skills enhance employee value and loyalty.

Provide mentoring: In smaller organisations with limited resources, mentorships are an excellent way for new employees to adapt to the workplace. Mentors from all walks of work can provide valuable guidance.

Broaden their perspective: Expose new-collar workers to situations outside their usual scope of work. This helps them understand the "why" behind operations and business decisions.

Redefine success: Reassess performance appraisals to reflect the development process of new employees. Consider adding intermediate categories between "Does Not Meet Expectations" and "Meets Expectations. Identify high-potential performers and nurture their growth into future leaders.

Catherine Ngo

Content writer, presenter and podcaster

Catherine is passionate about unravelling the latest news and insights to help HR managers, business owners, and employers.