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As the job market tightens, many professionals are asking themselves if a master’s degree is still the golden ticket to a successful career, or is hands-on experience now the more valuable asset? A recent survey of 1,000 U.S. hiring managers shows how employers view advanced education versus practical work experience.
Does a Master’s Degree Really Make a Difference In Performance?
A significant portion of hiring managers (62%) believe that having a master’s degree does not guarantee better job performance. In fact, they argue that candidates with a bachelor’s degree and a couple of years of work experience are on par with those holding a master’s.
However, around 38% of hiring managers still view master’s degree holders as higher performers. Gen Z hiring managers, in particular, seem to place more value on advanced education, with 29% claiming that a master’s degree significantly boosts performance, compared to just 13% of Baby Boomers.
How a Master’s Degree Affects Pay
While the debate about performance rages on, one thing is clear: a master’s degree can often lead to a higher salary. According to the survey, 72% of hiring managers are willing to offer higher pay to candidates with a master’s degree. In fact, 23% are even offering a 20% pay increase or more.
Generational Differences in Pay Decisions
The survey reveals that younger generations, particularly Gen Z, are much more likely to see a master’s degree as influential in salary decisions. About 80% of Gen Z hiring managers would offer a higher salary to someone with a master’s degree, compared to just 62% of Baby Boomers. Gen Z is also more likely to offer large salary increases, with 31% willing to give a 20% or higher pay bump.
Interestingly, male hiring managers are also more inclined to reward a master’s degree with a salary increase than female hiring managers: 75% of men would offer higher pay, compared to 68% of women.
Experience Still Holds Value
Despite the clear salary advantages, the majority of hiring managers agree that experience can be just as valuable as advanced education. Many hiring managers believe that practical experience leads to equally strong job performance.
This raises the question: if you can gain solid work experience in your field, is a master’s degree necessary? For many, the answer seems to be no. Experience often holds its own in the eyes of employers, especially when combined with skills and results.
For those considering whether to go back to school or focus on building work experience, the answer depends on your career goals and the industry you’re in.
For some fields, such as academia, research, and healthcare, advanced degrees may be essential. But for many others, gaining experience and continuously developing your skills may prove just as valuable in the long run.
