NGO Generation: unprecedented global research proposes a new way of recruiting professionals for the TECH area

Study shows that a university degree for entry-level positions in technology is less relevant than behavioral skills and IT certifications

On the one hand, companies have difficulty hiring technology professionals and increasing diversity, equity and inclusion. On the other, qualified young talents, eager for their first opportunity, but without meeting the criteria that most companies maintain to select professionals even for junior positions. What can change this reality?

According to the NGO Generation, which operates in 17 countries including Brazil, the answer lies in changes to the hiring process. More specifically in removing requirements related to a university degree and prior work experience for entry-level positions in the technology market, replacing them with certifications in the area and behavioral skills. 

The conclusion came from an unprecedented survey carried out between November 2022 and January 2023 in eight countries: Brazil, Canada, France, Germany, India, Mexico, the United Kingdom and the United States. More than 2,600 job candidates participated in the study, 1,275 professionals who have already secured a position in technology roles and 1,325 employers from different sectors. Supported by The Hg Foundation, Bank of America, Clayton, Dubilier & Rice and MetLife Foundation, the research gave rise to the report “Revolutionizing Technology Hiring”.

Barriers – Over the past three years, 61% of employers surveyed have added education or work experience requirements for entry-level roles in technology fields. Even though they mentioned the search for greater efficiency in hiring, they continue to face challenges in this process. More than half of the employers interviewed in the survey (52%) say that the company they work for has difficulty hiring for entry-level technology positions and 62% say it is necessary to review the hiring process for this type of vacancy.

The requirement for prior experience means that truly entry-level positions are becoming a thing of the past. Furthermore, the university education requirement becomes a significant barrier. About a third of candidates who didn't get technology jobs said they didn't meet education requirements and therefore didn't advance to the next stages of recruitment.

Pioneering – A quarter (24%) of the companies interviewed, however, began to focus on skills-based skills and removed the training or professional experience requirements for this type of entry-level position.

According to the study, almost 60% of the organizations that eliminated these requirements saw an increase in the number of candidates, which allowed them to speed up hiring and boost talent diversity. Even better, 84% from these companies said that people hired without the requirement for a degree or prior experience performed equally or better than those hired with traditional requirements. Another interesting fact is that, in Brazil, companies that removed formal prerequisites from their selection processes for entry-level vacancies had a reduction of 17% in the costs of recruitment processes.

Brazilian reality

In Brazil, the survey interviewed 380 job candidates, 175 professionals already employed in technology positions and 185 employers from different sectors. According to Helena Tavares, COO of Generation Brasil, the country's data is in line with international findings.

“In the search for greater efficiency in hiring, 65% of the Brazilian companies included in the research ended up adding requirements for university degrees or previous experience for entry-level positions in technology in recent years. Our research showed, however, that it was precisely employers who challenged this trend and focused on IT skills and certifications who were able to access more diverse talent pools and gain efficiency”, explains Helena.

Also similar to what happens elsewhere in the world, 59% of the Brazilian companies interviewed in the survey said they were facing difficulties in filling entry-level technology positions. So much so that 89% of employers said they invest in recruitment processes that include integration, mentoring and internship programs, in order to increase the number and diversity of their talent and improve their profitability.

But the barriers persist: among candidates for IT vacancies who were not selected in selection processes in Brazil, the main reasons given were: lack of necessary experience (59%), lack of technical skills (38%), insufficient academic credentials (35%) and lack of behavioral skills (23%).

Diversity

A key takeaway from the research is that skills-based hiring processes, such as technology industry certifications, have the potential to increase ethnic-racial diversity in companies as they equalize hiring opportunities for individuals without college degrees or groups. ethnic minorities.

The survey identified, however, a persistence of the gap between job offers for men and women, even among employers who changed their hiring criteria. Only 60% of women with certification in the area passed the interview stage and received job offers, while all men who reached the interview stage received a job offer, even without certification. One of the explanations for this, according to Generation, is the composition of the recruiting teams and the unconscious biases that permeate the entire process of choosing candidates.

For companies that are strongly motivated to expand entry-level entry channels into the technology sector, but are still encountering barriers, including the high cost of their selection processes, Generation's research brings some paths that can contribute to achieving this mission:

• Removal of work experience and diploma requirements, prioritizing certifications and other skill indicators to expand candidate pools;
• Using technical assessments during the hiring process to ensure candidates have the skills needed for the job;
• Pay attention to behavioral and technical skills throughout the selection;
• Reevaluate hiring to reduce unconscious bias and increase talent diversity.

“We hope the results help companies and employers understand and benefit from the effects of changing selection processes, prioritizing skills-based approaches. Our next step is to support companies to implement the necessary changes highlighted by our research and help them measure the positive impact of these changes on their businesses”, adds Gabriela Paranhos, COO of Generation for Latin America.

Check out the executive Summary of the research.

Access to full report in English.