Gen Z's are trapped in a career cul-de-sac.

There is a stat that haunts me. 800?000 young people who applied for the R350 Social

Relief of Distress grant from SASSA, all had degrees. What really depresses me is not just our horrific youth unemployment rate but the career cul-de-sac that young people are entering.

I was recently involved in two separate events which, when dovetailed, illustrates this depressing cul-de-sac.

The first event was somewhat awkward. I was invited to give a trend briefing on the future of tertiary education for the executive leadership of a university. Knowing that I would to focus on the growing disconnect between tertiary education (particularly the relevance of base degrees) and future business models, I was apprehensive to say the least.

Telling academics that there is growing scepticism of traditional education amongst Gen Zs (the university’s core customer) and that increasingly, their parents are supportive of their children not pursuing degrees, was going to be a bitter pill to dispense. But I was armed for an inevitable pushback.

Boris Groysberg, Professor of Business Administration at Harvard Business School observed that, “we have moved to this system of university credentials being required for jobs that simply don’t need university degrees. The bars were set artificially high and both companies and workers have paid the price.” He calls this default requirement as, “degree inflation or credentialing”, and goes on to say, “this has been particularly detrimental for workers of colour who, due to historic inequities, proportionately don’t obtain degrees at the same rate as whites.” This American point of view resonates deeply in South Africa.

Adding to the concept of “credentialling” is the fact that studies show that universities are not a guarantee of improving cognitive skills. Research shows that after 2 years at university 45% of students showed no significant improvement in their ability to think and analyse problems.

If you track the trajectory of future business models, the need for academic training is waning. Obviously degrees are still essential for professions such as a doctor, lawyer or engineer, but in many sectors, large companies are dropping degree requirements when recruiting. EY in the UK started the ball rolling back in 2015 and now multi- nationals like Microsoft and IBM have followed suit. IBM now place more emphasis on capabilities than formal academic training and categorise this new skill set as “new collar” jobs.

If you’re still unconvinced then consider that the Japanese space programme no longer stipulates a degree as an entry requirement. Degrees today are fast becoming an option, not a necessity, as a broader range of alternative credentials grows. I just wish parents would process this.

The second event provided a Gen Z perspective. I hosted a Gen Z immersion tour for my company’s clients, so that they could understand what it was like for digital natives to come of age in a world that was built in an analogue era.

The tour was designed to dispel the many myths surrounding Gen Z, as retail customers, but also as a new workforce. One startling insight was the disconnect between the career aspirations of Gen Zs and the outdated career trajectory most of us have diligently followed – because that’s what our parents wanted.

But it’s not just different skill sets that are now in demand but also a totally new approach to work. It’s deeply ironic that workers around the world are demanding more flexibility post pandemic, whereas before the pandemic the Gen Z work mantras were (1) “I don’t just want a job, I want a lifestyle”, and (2) “work is what I do, not a place I go to”. We’re beginning to realise that the “young upstarts” were onto something after all.

If you merge the question of degrees, with job fulfillment, there is another red flag for the companies that have always viewed themselves as the holy grail of “prestige jobs”. Gen Z workers are redefining the concept of a “prestige job”. Instead of working your way up the ladder of a prestige company, Gen Zs are instead opting for jobs that align with their purpose and passion.

A “career portfolio” rather than a traditional, linear career trajectory is now more desirable: one that allows them to acquire skills in a sector they are interested in, and in tandem, to develop an entrepreneurial side hustle. That's the new prestige job.

As work becomes increasingly decentralized – and will continue to do so - companies will want to hire “intrapreneurs”: employees that have an entrepreneurial mindset.

But many companies haven’t grasped this yet so cling onto old systems and processes, while bright young minds are continually funneled into a cul-de-sac of outdated ideas.

Commissioned and Written for City Press by Dion Chang .