You’ve heard of white-collar work and blue-collar work, but what are new-collar jobs? Traditional hiring practices are undergoing a significant transformation with novel technology emerging to reshape how we look at employment. Skill-based new-collar jobs signal the arrival of an updated category of workers who don’t necessarily hold traditional college degrees, but still have certain technical skills acquired through non-traditional channels. The rise of new-collar opportunities implies a shift in how the job market categorizes talent, opening unexpected doors for a distinct category of workers.
From an HR standpoint, new-collar jobs represent an opportunity to broaden talent pools. They represent a chance to build a more resilient organization that capitalizes on the unique capabilities of aspiring candidates who have an unusual but versatile background to shape how they work.
Wondering what new-collar jobs are? The benefits of nontraditional, skill-based hiring are twofold, aiding both employees and organizations. (Image: Pexels)
What Are New-Collar Jobs? Understanding the Evolution of the Job Market
Ginni Rometty, former CEO of IBM, has been credited for coining the term and bringing the concept of new-collar work into the limelight, and the concept has, more recently, caught on as an apt description of the evolution of work. The new-collar workforce trends refer to the rise of highly skilled positions that don’t require a traditional four-year college degree.
These roles prioritize practical skills, both technical and soft skills, and are acquired through non-traditional pathways such as vocational training, certifications, boot camps, apprenticeships, self-taught learning projects, and other similar channels that don’t overlap with college. Creating a clear link between blue-collar and white-collar work, new-collar jobs allow competencies to triumph over credentials. The term is not a new one, but its relevance is more evident than ever in today’s context.
How Do You Define New-Collar Work?
There are several defining traits that employees curious about new-collar work need to understand about this segment:
- Skills over degrees are a defining trait of new-collar work, where the capabilities of employees with specialized technical abilities and soft skills take center stage
- Nontraditional education and training programs often lead to the development of necessary skills rather than elaborate college degrees
- Tech-driven industries are the leading adopters of new-collar workers, where the fast-paced fields benefit from their up-to-date insights and knowledge of the workers
- Potential for high-paying roles with low risks of automation makes this category of work all the more appealing for job seekers
In an AI-powered world, understanding of the technical intricacies of the technology is an obvious benefit for workers, but there are other skills, like adaptability, which are also of equal importance. It is important to note that the best new-collar careers aren’t exclusive to AI operations. There are many emerging positions in tech, healthcare, manufacturing, engineering, business, management, etc., where the concept of new-collar work has solidified.
What Does the Rise of Skill-Based New-Collar Jobs Mean?
The popularity of new-collar work is evident across industries, from manufacturing all the way to healthcare. Over the last few years, we have witnessed a decline in the importance of college degrees, with many young graduates coming to terms with the fact that their education has not sufficiently prepared them for the workforce.
Many have begun turning to blue-collar jobs as an alternative to the desk job of their dreams, but the rise of new-collar work suggests that it doesn’t have to be one or the other. The job market has grown increasingly stagnant, with more workers entering the workforce than exiting it with their job offers. However, a transformation in how we hire could revitalize the job market and make hiring a more targeted and productive process.
How Can Organizations Benefit from Hiring New-Collar Workers?
Having answered what new-collar jobs are, we now move to understanding how this broadened perspective might benefit your organization. Data suggests that many businesses have already committed to dropping their degree requirements for particular roles. While that initial decision emerged from a desire to hire from a wider pool of candidates for lesser pay, there is room to consider the expanding category of new-collar workers as well.
Skill-based hiring over impressive qualifications can make it much easier to widen the talent pool and find workers who better fit the needs of the organization. This shift can also help with addressing the evident skill gaps within the organization, filling it with new-collar hires rather than waiting for top talent from other organizations to free themselves up.
The rise of new-collar work also brings in a more cost-effective approach to hiring workers who can learn and adapt to the needs of the organization with initial on-the-job training, enhancing the innovation of the organization by bringing their insights into the mix as well.
What Role Does HR Have to Play in the Future of New-Collar Work?
The future of work appears to be built on the promise of new-collar opportunities, and HR leaders who observe the change and adapt their recruitment strategies may emerge stronger than ever. Adopting new-collar jobs requires a mindset shift towards skill-based hiring, and there are a few steps that can get your organization closer to the goal.
- An overhaul of the recruitment strategy is necessary, redesigning job descriptions that better reflect the roles, dropping unnecessary degree requirements when possible
- Changing the process and metrics of recruitment and introducing skill assessments into the mix can help gain a better understanding of the person beyond their resume
- Investing in training and upskilling of workers can bring existing talent up to speed, giving them a chance to utilize their skills in new ways
- Partnering with diverse sources of talent from community colleges to boot camps and other training programs can improve access to this new-collar talent
- Redesigning the company culture to be more receptive to the arrival of non-traditional talent and using systems like mentorship programs can help these new hires settle in
- Starting small and studying the progress of these shifts in the recruitment metrics will help understand where there are roadblocks
Get Started on Preparing for a New-Collar Future
What are new-collar jobs? They are, perhaps, the future of work. College educations are not fading into obscurity, and neither is blue-collar work, however, the emergence of this new middle category suggests that there is considerable room for us to adapt how we look at employment. Skill-based new-collar jobs are still blurry as a category, but they allow for more nuanced discussions on what it takes for a company to thrive.
Yes, AI tools are here to rewrite some job roles, but this does not take away from the ground realities of human labor being essential for any organization to thrive. It’s time for HR professionals to rethink hiring, invest in skills, and embrace the total potential of every candidate without writing them off too soon. The results? The establishment of a more innovative, inclusive, and productive workforce.
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