In an ideal world, employers in the service, restaurant, and retail industries would see many of their employees work their way up the system. That's a benefit because when a worker starts in an entry-level job and works their way up to management they have a unique understanding of the company.
A manager who has done work at the ground level has a deeper understanding of how a company operates than someone who entered the company in an office job. People who work the sales floor, the register, or who make your fast-food meals gain knowledge that can translate well to management.
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The problem is that many white-collar jobs require degrees that people who work retail, restaurant, and service industry jobs don't have. Many companies including Walmart, Chipotle, Starbucks, and Target (TGT) -) have programs that pay for employees to get degrees.
Many workers, however, do not have the time to go to school, while working a full-time job even with most companies offering online-only options. Those workers who can't or don't want to get a four-year degree are learning how their companies operate and gaining skills that would benefit them in management jobs.
Many will never reach those levels because they won't get a traditional college degree. That's a problem that Walmart (WMT) -) has taken definitive steps to correct.
Walmart changes its job requirements
The rising cost of college has forced companies to examine whether jobs that have traditionally required four-year degrees should keep that requirement. Technology giants including Google have dropped that requirement in some cases and have offered certificate programs designed to train workers for specific jobs.
Walmart has decided to make a similar decision and has begun the work to create a workplace where "all learning counts."
On its website, the company described Reece Niblett, an employee who had worked in its fulfillment centers, driven a truck, and served in the Marines. That employee may not have a college degree, but he has a unique skill set that could be equally (or maybe even more) valuable.
"In all three places, he developed critical skills and experience that make him successful today. Reece does not hold a college degree, but there can be no doubt he has spent his career learning, making him a valuable asset to the company," the company shared.
Walmart has made over $140 in philanthropic investments over the last five years to build skills-based systems beyond the company. Now, the company is turning those efforts inward.
"Combining our business and philanthropic efforts is helping create skills-based systems and hiring practices that allow people to see more career opportunities and be seen by employers for all the skills they have. That includes formal education, work experience, short-form credentials, volunteerism, military service, and other life experience," the company shared.
Walmart wants to hold onto workers
With these efforts, Walmart is making a concerted effort to give its workers another path to work their way up at the company. That could keep people in their system and stop them from making lateral moves to rivals like Costco, Target, and Kroger which may selectively pay more.
"Ultimately, Walmart believes the U.S. workforce system needs to transition to a system that recognizes and understands skills in the same way it recognizes and understands college degrees. This gives talented, skilled workers who do not have degrees the same benefits as people who do," the company wrote on its website.
To make this happen, Walmart is doing five key things:
Offering more short-form certificates focused on new skills: These would focus on quickly training workers for in-demand jobs.
Rewriting job descriptions to factor in skills: This effort includes offering ways beyond degrees for workers to qualify for more jobs.
Gaining degree credits through learning on the job and at Walmart Academy training: Under this program, the chain will make earning a degree (for jobs that still require them) easier by allowing employees to earn college credits in alternative ways.
Using technology to connect associates to career opportunities: Walmart is investing in its website to make it easier for associates to find a career path.
Funding a skills-based ecosystem through Walmart.org: The company will continue to fund research and real-world programs through its philanthropic arm.
"Will looking at skills rather than just degrees help Walmart attract more talent? In [one] word, yes. And not just Walmart," retail consultant Georganne Bender posted on RetailWire. "Requiring a college degree for many jobs never made sense. Turning away a talented person with experience because they lack a degree is just stupid. In my opinion, especially in retail, talent should top a degree every time."
