Experience: the Best Asset in Human CapitalBy Anamary Olivas | Mon, 07/11/2022 - 21:44
Experience can outweigh education. According to research by McKinsey, the skills acquired through experience represent 46 percent of the value of talent and, in some cases, allow a higher level of income than the opportunities that professional training could provide.
Even though formal education is fundamental, it does not always guarantee professional growth. There are some cases where work experience can improve opportunities and generate higher income compared to what academic diplomas could offer. When employees are part of the development of an organization, they gain knowledge and skills that they will carry along their entire careers. This knowhow is sometimes far more valuable than most diplomas that offer little to none professional exposure. Talent therefore relies on the value that experience provides to companies, as do Human Resources experts
For recent graduates, a new degree may serve as evidence that they have acquired skills that may allow them to perform on gain them an opportunity at an entry-level job. However, it is more likely that job candidates with internships or half-time jobs during their studies will be prioritized, even with lower academic scores. Profiles with more experience than education usually start out with lower-than-average salaries but propel themselves forward by changing roles and expanding capabilities. This cumulative effect gives experienced workers stronger salary growth than any other professional path.
Companies with a strong organizational health offer the most structured training for their employees, as well as the highest amount of opportunities for internal advancement. People join these companies to build knowledge and networks, understanding that their experience will prove to be an asset for the rest of their careers.
Such opportunities often come with a change of roles within the company. Research carried out by McKinsey indicates that although the work experience acquired by job movements is a way of improving income, more companies need to bet on people who want to develop new skills and create new learning curves for recent hires.
However, companies must get ahead of talented people moving elsewhere. The key for employers is to become part of the movement people require in order to gain relevant experience. Organizations could consider that part of a manager's job is to prepare their teams to perform in other areas of the company. Each role should have clear pathways toward future roles, with skill requirements outlined to ensure that there is a mutual agreement about future opportunities.