In 2024 and beyond, the talent landscape is changing. Demographics are shifting, and as they say, “demographics are destiny.” Data shows that the attainment of college degrees for the nation’s young workers is declining, driven mostly by the perceived lack of necessity and fear of long-term debt.
From this landscape, a new employee persona has emerged: the “new collar worker.” New collar workers are those who, despite lacking a four-year college degree, have the skills required to succeed in the workforce.
New collar workers can be a rich source of untapped talent for employers. But first, it’s important to understand the barriers in place, even those held up unintentionally, to hiring from this talent pool. In this article, we’ll discuss why small to mid-sized businesses should invest in new collar workers, how they can attract them as applicants, and finally, where to turn for help getting started.
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Traditionally, the workforce has been divided into blue-collar and white-collar categories, but "new collar workers" occupy a unique space that blends elements of both. Unlike white-collar workers, they often lack university degrees, and unlike blue-collar workers, they are not solely engaged in manual labor. They are often referred to as “middle-skill” workers because, while jobs they’re a fit for require some skills or experience, they do not require an advanced degree.
The rise of new collar workers as a significant segment of the workforce is likely due in large part to the advent of new technology: technology that needs to be understood and operated, and technology that eradicates much of the manual labor of the past.
However, new collar workers aren’t just tech-savvy — they also find niches within different industries that require a trade, like healthcare or information technology. New collar workers frequently obtain and build their skills through self-teaching, work and internship experience, community college programs, trade schools, certification programs, and coding boot camps.
Recruiting new collar workers benefits both the employee and the employer. According to a recent joint study conducted by Harvard Business School and Accenture examining employers who hired new collar workers for open “middle-skill” roles (which required some education or training but not a bachelor’s degree), “no boosts in productivity” were found when those jobs were awarded to candidates with bachelor’s degrees versus when they were awarded to those without. Organizations that require a bachelor's degree for middle-skill jobs are unnecessarily winnowing their pool of available talent.
The first step to pulling in new collar workers is to determine where it makes sense to do so. When and where to integrate new collar workers into your organization depends on your industry, employer size, and the nature of the open positions you have coming available to fill. In general, you might consider pulling new collar workers into the following positions:
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As you enter the next phase of talent development at your organization, it helps to have HR experts on your side. Axcet HR Solutions works hand in hand with you as you expand your recruitment horizons and find the right fit for every position, every time.
Axcet HR Solutions is a certified professional employer organization (PEO) that is proud to offer small to mid-sized businesses comprehensive guidance on compliant recruitment, retention, L&D, and more. We can take the wheel on a full range of HR tasks, while you regain the time and resources needed to focus on growing and scaling your core business. Schedule a conversation today to learn more.