Want to earn more? You need to get formal qualifications.
If you want to earn more, you may need to improve your qualifications.
Studies indicate that people with formal qualifications earn approximately 24% more than those who have only attained a secondary-level education (graduating grade twelve). There are multiple factors that explain this variance, but all signs point towards one fact – if you want to earn more, a formal qualification is the way to go.
Employers look favourably on candidates that have the qualifications to prove they are suitable for a role. If you’re struggling in a job search, it may be because you’re lacking the qualifications that other candidates are bringing to the table.
The job market is incredibly competitive, and getting more so every single day. In order to position yourself for success, you need to pursue the qualifications that will enable you to get employed in high paying roles in growing industries.
There are several reasons behind the fact that qualified people earn more than those without qualifications. If you’re looking for a reason to return to study, the below should convince you.
Gaining a qualification will allow you to seek work in industries that are around for the long haul. Those types of jobs that require very little knowledge or skill to perform face a serious threat of being replaced by automation or artificial intelligence. A great example is fast food employees. In the United States, both front counter employees and line workers (those who prepare food) are slowly being replaced by self-serve kiosks and machines that can produce burgers.
Due to the relatively simple tasks involved in these jobs, and their highly repetitive nature, they face a genuine risk of being replaced in ever-increasing numbers. In order to secure your future, it’s important that you position yourself in jobs and industries that are incredibly difficult to replace by machines. Of course, even highly qualified employees can be replaced in some instances. The mass-automation of automobile manufacturing drove thousands of highly qualified welders, fitters and turners, and others out of roles in the United States and across the world.
By attaining formal qualifications, you can enter industries with far more sustainable employment growth paths. Research indicates that formally qualified people are not only paid more, they are also face a far lower risk of unemployment.
The benefits of qualifications are further compounded once you’re in the role. Qualified employees are given greater access to further training, often paid for by the company, and promotion opportunities.
Even if you already know the ins and outs of your role and are fully comfortable carrying it out every day, a qualification can help secure your position for the foreseeable future. When a company enters a period of low growth or loss, they are less likely to make redundant their highly qualified employees when it comes to cutting jobs.
Greater Job Requirements
Qualifications can prepare you for far more complicated roles. Without formal qualifications, it can be difficult to find jobs with high levels of responsibility and trust. For this reason, you may find yourself in the market for positions that are on the lower-tier of the job ladder.
If you want to advance your career, enter managerial positions or gain greater recognition and rewards for your contributions, then a formal qualification is an absolute necessity. The ability to prove that you are worthy of a promotion or increased salary will go a long way towards making a strong argument that you deserve it.
Because the roles that require formal qualifications carry with them greater job requirements, the pool of candidates who are able to fill them are significantly reduced. If a job requires proper training or education to pursue, then the fact is that a person can’t simply walk off the street and into the role.
For this reason, formally qualified candidates enjoy far higher job security. Their job is difficult and requires specific talents, so their employer is far less likely to let them go and hire someone else – for the simple fact that they may not be able to find anyone else. The more niche qualifications you pursue, the more important this becomes.
Possessing a wider range of skills and abilities is one of the core reasons that formally qualified candidates enjoy greater job security. Enjoying a far wider set of skills than unqualified candidates, those with formal training can ensure that they are less likely to face unemployment.
Furthermore, you can leverage your increased skillset into higher paying roles. Many businesses search for candidates with multiple qualifications, simply because those candidates are often more capable than others.
By hiring broadly qualified candidates, businesses can fill skill gaps. It can often be far cheaper to pay a candidate 50% more than their role deserves if it helps a business to avoid hiring an additional candidate to fill another role.
Enhanced skills also usually lead to higher productivity, which is something most businesses are always on the lookout for.
Changes in the Labour Market
The labour market is changing rapidly. In countries like Australia, services are rapidly replacing the production of goods, which can be done far more cheaply in developing nations. Manufacturing is rapidly disappearing from the western world, and roles that require formal qualifications are becoming far more widespread.
In addition to economic pressures, the increasing rate at which people are attaining qualifications is also affecting the labour market. With so many school-leavers pursuing formal education, attempting to enter the job market without it is going to become increasingly difficult.
Sure, experience counts for a lot. However, increasing government regulations are demanding that only those who are fully qualified can fulfil certain roles. Additionally, employers have a very talented pool of candidates to choose from. If you want to stand out, you need to get qualified.