Why the value of a university degree is rapidly declining

 

In the 1960s, only a small proportion of the population went to university to obtain a degree. Not having a degree at that time didn’t prevent people from working in banks, as journalists, civil servants, and even as senior managers in public companies.

A degree had an immense value and prestige then.

Today, a business degree in Southeast Asia, if the person is lucky, may get them a job in a telecommunications company shopfront.

Students studying for bachelor degrees are given high hopes, from university hype, that their degree will open career doors. Degrees are so plentiful today, they have little value as a means to obtain a good job leading to a stable and upwardly mobile career.

In some cases, such as business degrees, there is a glut of graduates for jobs available. Applications from business degree holders are just placed in a pile to the side by human resources departments of major employers.

Any executive position within a major company today requires either a double degree, or postgraduate qualification like a master’s degree.

Graduates in journalism, sociology, liberal arts, communications, marketing, and political science usually face great difficulty in finding jobs where their qualifications are relevant.

Changing environments

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Workplace environments have rapidly changed over the last decade. Degree holders now have very limited upward career mobility and almost no job security.

Those working within the retail sections of utilities, supermarkets, banks, and entertainment operators, will rarely, if at all, be promoted to head office in any executive position.

At the executive level, those with postgraduate qualifications will usually be employed on a contract basis. The days where someone could start work at the shopfloor and work their way up an organisation are long gone.

The arrival of Industry 4.0, cloud computing systems, coupled with AI systems have allowed companies to dispense with a whole layer of middle management, which is now redundant. Cashless payment environments at retail outlets have eliminated the need to trust employees.

Due to this rapidly changing environment, most employees will have to retrain to suit the changing nature of work opportunities.

Cost of education

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This changes the cost-benefit ratio for investment in a university education. The cost of a three-year bachelor’s degree is equal to around a year’s salary, but could take up to 10 years to repay by installments. That’s if you remain employed all the time. University debt anchors a person to limited choices in their career while carrying debt.

With the average person now having to retrain once or twice during their careers, university debt becomes a major burden.

Changing nature of universities

Universities were once revered places of learning, philosophy, and research during most of the 20th century. Rising operational costs and lower revenue have forced most universities to orient themselves around the foreign student market. This required universities to lower standards in order to cater for lower English language competency of foreign students.

Previously, there were a limited number of universities. Most of these were public universities. Professors in these universities were usually experts within their fields and internationally recognised.

With the advent of private universities, lecturers were much younger with limited mastery in the subject areas they taught. One business school dean in Southeast Asia told the writer that someone with a textbook in their hands could teach any class.

Curriculums became much simpler, where in most cases they were based upon a selected textbook. In some universities, students were given passes as long as fees were paid. The reputations of universities as centres of learning have drastically declined in recent years. They have become degree mills.

Students today are not interested in the intellectual pursuit of knowledge, they only want a degree to get them work.

A brave new future

Prospective students must look at education in new ways. There are now alternatives to achieving a fulfilling career, which are much cheaper than getting a degree.

Job security is now something of the past. Many employees today work on contracts, which may or may not be renewed by their employers. Companies no longer value employee loyalty and length of service, as they once did.

If one is seeking corporate employment, then the ability to be multi-disciplinary is extremely important. Seek specific diplomas, and graduate diplomas, at a fraction of the cost of a degree. These are offered in other places, such as community colleges, and TVET institutions. Train for a job rather than a career.

Business and entrepreneurship degrees tend to teach about entrepreneurship. It’s impossible to teach the intrinsic nature of entrepreneurship. Entrepreneurship is an art and must be taught that way. Universities don’t assist a student to develop and apply the technologies they need for any start-up business they are planning.

People who have an entrepreneurial passion within them, will never sit three years in a classroom. They will drop out from boredom and start a business. Those who want to be an entrepreneur should seek short courses, rather than commit to undertaking any degree.

What you need to learn

The only thing one can really learn at university is how to think, look for information, and solve problems. If you can already do that, you don’t need a university education.

Universities can provide you information about a domain and field of knowledge. However, after graduating you will forget most of it, and what you don’t forget will quickly become obsolete.

To be successful, one must master their own field. This takes time, practice, experience, and an acquired intuition. This creates a sixth sense in your work, which we can label as wisdom. Unfortunately, universities can’t teach this.

Go and have a look at any auto parts wholesaler. The shop may have up to 5,000 items, and the operator will know the item, its use, compatibility with car models, price, and where the part is located in the warehouse.

They don’t need any IT to do this. This is an example of personal mastery.

There may be more utility in other forms of education than attending a university. - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.